Wednesday 19 June, 2019

Cayman police issue warning after foreign investor fleeced out of 20K

The Royal Cayman Islands Police Service (RCIPS) on Tuesday sounded the alarm after a New Zealand investor was fleeced out of $20,000 USD by a company purporting to be based in the Cayman Islands.

According to the FCU, while the fraudulent investment company claims to be based in the Cayman Islands, it is not registered by CIMA to conduct financial service business, nor does it have a physical presence here.

The RCIPS warned persons who are considering investing money in Cayman Islands based companies to do proper research of the company of choice, to ensure their legitimacy.

One way of verifying the legitimacy of a company is to make checks with the  Cayman Islands Monetary Authority (CIMA); which regularly publishes notices regarding companies that are not registered or licenced to trade in the Cayman Islandsthat have been found to use websites with Cayman addresses.

The police also issued a  few  tips to consider when investing in overseas businesses:

1.  Use the internet to research the company’s address and other unique identifiers. Such research may also reveal other defrauded investors.

2. Be suspicious of companies that filter telephone enquiries by answer phone. Ensure that you are able to talk to someone when you make a telephone enquiry rather than receive a call back. Record any telephone numbers you receive investment calls from.

3.  If practicable, always insist on meeting representatives of investment companies in person before investing funds.

If funds are transferred to a fraudulent account, it is important to act quickly:

1.       Contact your financial institution immediately upon discovering the scam.

2.       Request that your financial institution contact the corresponding financial institution where the transfer was sent.

3.       You are encouraged to keep all original documentations, emails, faxes and logs of communications.

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