Financial Crime World

Trinidad and Tobago Sees Rise in Fraudulent Transactions: Tourism Sector Hit Hardest

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A worrying trend has emerged in Trinidad and Tobago’s financial services sector, with cases of fraudulent transactions on the rise. The latest scam to hit hotels and tourism operators involves fake cashier’s cheques being credited to their bank accounts for alleged bookings.

The Scam

According to officials at the Financial Intelligence Unit of Trinidad and Tobago (FIUTT), criminals are using this tactic to dupe hotel owners into refunding partial or full amounts before the clearing period is completed. The scheme typically begins with a fraudulent cheque being mailed to the hotel, which is then credited to their account.

The Scheme in Action

  1. A fake cashier’s cheque is mailed to the hotel.
  2. The cheque is credited to the hotel’s bank account.
  3. The “issuer” of the cheque contacts the hotel, requesting a refund of the cheque amount, usually before the bank has had time to clear the funds.
  4. The scammer pockets the money, leaving the hotel owner out of pocket and with a worthless cheque.

Prevention is Key

Hotels and tourism operators are being warned to be vigilant and take steps to protect themselves from this emerging trend. Authorities are urging all financial institutions and businesses in the sector to remain on high alert for such fraudulent activities and to report any suspicious transactions to the FIUTT immediately.

What You Can Do

  • Be aware of this scam and report any suspicious activity to the authorities.
  • Take proactive measures to prevent these types of scams, such as:
    • Verifying the authenticity of cheques before depositing them.
    • Not refunding amounts until the cheque has cleared.
    • Keeping accurate records of all transactions.

The Stakes

With millions of dollars at stake, it is crucial that hotels and tourism operators take proactive measures to prevent these types of scams. The public is also being cautioned to be aware of this scam and to report any suspicious activity to the authorities.