Police warning after victim scammed out of more than $10,000
A member of the public has lost more than $10,000 in a scam investment scheme that promised high returns.
A police spokesman highlighted a second scheme where fraudsters tried to obtain private financial details of victims.
He explained the first fraud, dubbed the hyperfund scam, involved what appeared to be a legitimate company that invited investors to put up cash in a multilevel marketing scam similar to a Ponzi scheme.
The spokesman said: “Several persons have fallen victim to the scheme, with one Bermudian investing upwards of $10,000.”
He added the other scam involved cold callers who phoned people and claimed to be from online shopping service Amazon.
The spokesman said: “The fraudster then informs the intended victim they have a monetary claim on hold and requests certain personal details to confirm their order.
“This is an attempt from the fraudster to obtain the personal banking details of unsuspecting victims.”
The spokesman said there were several “red flags” that pinpointed potential frauds.
These include promises of unusually high returns on investment without an explanation of how they were achieved and calls from companies that were not registered with regulatory authorities.
The spokesman added the public should also be wary of investment schemes that asked them to recruit new members, as well as calls from unknown people asking for personal or banking information.
Detective Chief Inspector Sherwin Joseph, head of the specialist investigations department, said: “You should perform independent research on the company to confirm their legitimacy and identify if any adverse news exists about them.
“Try to understand how the company is making such high profits. Be wary of companies that ask you to recruit other members.
“Be suspicious. If it sounds too good to be true, it more often than not, usually is.”
Mr Joseph added: “Do not provide your personal information online unless able to properly identify those requesting that information.”
Suspected online fraud should be reported to the financial crime unit at 247 1757 or by e-mail at Group-FCU@bps.bm.
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