Financial Crime World

Maldives Grapples with Financial Fraud Epidemic: 1,657 Scam Cases Filed in a Year, Worth MVR 26 Million

The Bank of Maldives (BML) has sounded the alarm over a surge in financial fraud cases in the country, with a staggering 1,657 cases filed so far this year. The bank’s CEO, Karl Stumke, expressed deep concern over the rise in scams, revealing that MVR 26 million worth of illegal transactions have been executed within the past year.

Types of Scams

The most common type of scam involves hacking social media accounts to obtain bank-issued card details and siphoning money from victims’ accounts. Other frequent schemes include:

  • Selling goods at unrealistically low prices
  • US dollar exchange scams
  • Promising goods or services in exchange for upfront payments

These scams often begin with an initial transaction where customers deposit money into their personal accounts. The BML CEO warned customers to be vigilant against such instances and emphasized that while the bank can take measures to prevent fraud, it is ultimately up to individuals to protect themselves from falling prey to scammers.

Statistics

According to statistics released by the BML, a disturbing trend of financial fraud in the country has emerged. The data reveals:

  • 421 cases of Facebook pages promising cheap goods have been reported, resulting in losses worth MVR 3.1 million
  • 99 cases of deceptively seeking one-time password (OTP) codes have resulted in losses amounting to MVR 3.8 million
  • 266 cases of fake currency exchange deals, with losses totaling MVR 3.7 million
  • 186 online trading scams, resulting in losses worth MVR 2.7 million
  • 45 e-SIMs were activated and used to hack into bank details, causing a reported loss of MVR 2.4 million

Response from the BML

The Bank of Maldives has urged its customers to exercise extreme caution against scams and has made several efforts to raise public awareness about the issue. The bank is working with authorities and institutions to combat this growing problem in Maldives.

Conclusion

Financial fraud is a serious concern in Maldives, and it is essential for individuals to be aware of these schemes and take necessary precautions to protect themselves. The BML will continue to work towards preventing financial fraud and educating its customers on how to stay safe from scams.