Financial Crime World

Scammers Capitalize on Fear and Uncertainty Amidst COVID-19 Pandemic

As the world grapples with the ongoing COVID-19 pandemic, scammers are taking advantage of people’s fears and uncertainty to swindle victims out of their hard-earned cash. According to the Financial Markets Authority (FMA), there has been a significant surge in complaints about investment scams and fraud since the start of 2020.

The Rise of Investment Scams

In the first half of this year alone, the FMA received 158 complaints about investment scams and fraud - a staggering 79% increase from the same period last year. Scammers are using various tactics to trick victims, including social media contact scams, romance-investment hybrids, and imposter websites.

Some common COVID-19-related investment offers and activities observed overseas include:

  • Promises of investing in goods or industries experiencing strong demand during the pandemic
  • Offers of products supposedly effective against COVID-19
  • “Safe haven” assets such as cryptocurrencies or precious metals
  • Promises of passive income or cash flow

The Consequences of Falling Prey to Scammers

Victims have lost significant sums of money to these scams, with some reporting losses of over $100,000.

How to Avoid Falling Victim to Scammers

To avoid falling prey to scammers, the FMA advises caution when receiving unsolicited investment offers or messages. Never send money to any website or online platform that raises alarm bells.

If you believe you’ve been targeted by a scammer, contact the FMA immediately and provide your contact details. You can also report scams on the Consumer Protection’s Scamwatch website or forward text message scams to the free shortcode 7726 (SPAM).

Remember: If an Investment Opportunity Sounds Too Good to Be True…

Always do your research, verify the credentials of any company or individual making an offer, and never send money without thoroughly investigating the legitimacy of the investment.

Stay vigilant and protect yourself from scammers!