Financial Crime World

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Identity Theft Financial Losses in Namibia: A Growing Concern

In recent times, the Financial Intelligence Centre (FIC) has sounded the alarm about the alarming rise of tax-related scams and identity theft in Namibia, resulting in significant financial losses for victims.

According to the FIC, criminals are increasingly using sophisticated methods to trick taxpayers into sharing their personal and financial information. These scams often result in huge financial losses for victims, who may also become unwitting participants in money laundering activities.

Common Techniques Used by Scammers

The FIC has identified three common techniques used by scammers:

  • Tax-Related Identity Theft
    • Criminals steal personal information such as income tax numbers, addresses, birthdates/identification numbers, and other significant details to file a tax return in the victim’s name.
    • This can lead to stolen tax returns and financial losses for victims.
  • Refund Recalculation Scams
    • Scammers may contact taxpayers via email or text, claiming that they have recalculated their income tax refund and that they are due to receive more funds than anticipated.
    • Victims are then requested to click on a link to provide personal information, which is used to access online bank and credit card accounts or apply for credit cards and loans in the victim’s name.
  • Taxpayer Advocate Scams
    • Criminals pose as taxpayer assistants from legitimate institutions, calling taxpayers with a number that appears to be from the institution.
    • They may request personal information, which is then used to steal the taxpayer’s identity and commit other fraudulent activities.

Protecting Yourself

To protect yourself from these scams, the FIC recommends:

  • Safeguarding your tax number and personal information
  • Being cautious when sharing information
  • Staying up-to-date on security threats
  • Using the latest security software
  • Verifying institution contact details

Reporting Fraudulent Activity

If you become a victim of a tax-related scam or any other fraudulent activity, immediately:

  • File a Suspicious Transaction or Activity Report with the FIC at the Bank of Namibia
  • Report same to the Namibia Revenue Agency (NAMRA)
  • Contact the nearest police station to initiate a criminal investigation