Common Financial Scams in Guyana Continue to Flourish Amid Pandemic

Despite the global pandemic bringing many aspects of life to a standstill, financial crimes have continued to thrive in Guyana, according to officials at the Financial Intelligence Unit (FIU). The unit has seen a consistent increase in reports of suspicious transactions, with a total of 341 such reports received last year.

Financial Sector Reports Majority of Suspicious Transactions

The majority of these reports are coming from the financial sector, including banks and non-bank financial institutions, as well as money transfer agencies. Online fraud is becoming increasingly prevalent, with scams such as romance or package delivery schemes targeting unsuspecting victims.

Common Scenarios

• Individuals are tricked into transferring funds after being influenced by social media users to do so in exchange for a supposed romantic relationship or other inducement.
• Once the funds are transferred, the scammer disappears without a trace.
• Email compromise fraud involves criminals gaining access to an individual’s email account and then sending instructions to their bank, resulting in large sums of money being wired to fake suppliers.

Smurfing: A Practice Used to Avoid Detection

The FIU has also been tracking instances of smurfing, a practice that involves breaking down large sums of money into smaller transactions to avoid detection by financial institutions. While not technically illegal, smurfing is often used as a means of laundering money and can be linked to criminal activity.

Cooperation and Combating Crimes

• Officials at the FIU are commending financial institutions for their cooperation in reporting and blocking suspicious transactions.
• The unit has been working closely with local and international agencies to combat these crimes, including sharing information with Suriname, Trinidad and Tobago, and the United States.
• The FIU has submitted 14 intelligence reports to the Special Organised Crime Unit (SOCU) for investigation.

Protecting Yourself from Financial Scams

To protect yourself from falling victim to these scams:

• Be vigilant when using social media platforms like Facebook and WhatsApp.
• Report any suspicious activity to the authorities immediately.

As the pandemic continues to pose challenges to Guyana’s economy, it is crucial that individuals remain aware of these common financial scams and take steps to protect themselves from falling victim.