Online scams pocket $10m in 2026, police confirm
The Bermudian public have lost more than $10 million this year to online scams, police have confirmed.
Acting Detective Superintendent Jason Smith further warned that in the past two weeks alone, seven local businesses were fleeced out of more than $1.8 million by fraudsters.
He said that while about 45 people this year reported being targeted, the number of victims was likely higher but unreported to police, with potential victims instead going to their banks.
Mr Smith said: “One can imagine that, in some instances, the monies that have been lost were pensions and monies that are needed to support their families.”
He added: “When we started to get inundated with these types of reports — around 2023, 2024 — a lot of the persons that we saw were many of our seniors who’d seemed to have been targeted.
“Unfortunately, what we’re seeing now is that there’s a cross-section of the community that might be, just because of the sophistication of the scams.
“So it’s widespread throughout our community.”
The remarks came during the announcement of a partnership between police and the Bermuda Bankers Association to warn the public against scams and how to be protected against them.
Mr Smith admitted that because much of the fraud emanated from overseas and was very quickly executed, there have been no prosecutions over the scams.
However, he added that the BPS have collaborated with banks and law enforcement agencies to follow the stolen cash.
Mr Smith said: “It’s just by means of trying to trace where the money might have gone.
“The importance is being quicker — the earlier that we can get involved at least helps the challenge.”
Neville Grant, the chairman of the BBA, said that because these transactions could happen in minutes or seconds, the money was rarely recovered by the time the victim has clued into the scam.
He added the uptick in scams may have been caused by fraudsters having success in targeting Bermudians in the past and coming to view the island as an easy target.
Mr Grant suggested Bermuda’s small size and relative wealth, as well as the “trusting nature” of its community, made it tempting as a target to swindle others.
He warned that fraud did not just impact the victim, but could make their loved ones and workplaces vulnerable to targeting.
Mr Grant explained that stolen data and information could be used to find those around the victim and appear legitimate using the stolen information.
He added that this data could place the victim on a “sucker’s list” that could be sold to others.
He said: “That means you will be prompted and encouraged to participate in other scams in the future.”
Neville Grant, chairman of the Bermuda Bankers Association, says the use of sophisticated generative artificial intelligence has made detecting scams significantly more challenging.
He explained that a common scam was disguised as an advertisement recommended over social media that hacked into someone’s device once the user took action.
Other scams involved fraudsters impersonating senior members of a company and “user-authorised transactions” where victims are tricked into allowing fraudulent deals.
Common user-authorised transaction scams included Trojan horses that installed malware on devices; fake employment and “mystery shopper” scams that implicated the user into funnelling stolen money; and “sweetheart scams” that involved a fake online relationship that later devolved into distributing stolen cash.
Mr Grant further warned that the hardest scams to follow involved scammers calling to warn a person that they were victims of fraud before stealing their bank credentials for “verification”.
He added: “In this particular case, they are trying to cast the legitimate bank as the potential fraudster, so if the bank reaches out and says, ‘listen, we’re seeing some transactional activity that doesn’t really align with what you normally do’, you are being told by the fraudster that this is the fraudster.”
These scams, Mr Grant explained, usually resulted in accounts being opened overseas for the stealing of funds.
He said: “When it comes to this scam, it is very effective because you’re essentially told that the bank is the person that’s trying to perpetrate the crime, so it becomes very difficult for the legitimate bank to reach out and stop the process.
“This fraud is increasing rapidly, and it is very effective.
“It is very deceptive because it preys on some confusion, it preys on some urgency, and typically, by the time this occurs, it is too late.”
Mr Grant told the public to be highly vigilant of incoming calls and messages, saying “the first stop is you”.
He said: “While there may be technology and other sophisticated means to conduct fraud, you are the best person to prevent fraud and that’s the first stop.”
Mr Grant said staying alert and curious was “the most critical step you could take” when discerning scams.
He said: “If it doesn’t look right, if it doesn’t sound right. If it sounds a little too suspicious, trust your gut intuition.”
Mr Grant encouraged people to have unique passwords and personal identification numbers, and to stay away from Bermuda-centred security questions.
Two-stage verification was also recommended, as well as securing one’s devices.
Mr Grant encouraged those who received a call from the bank to hang up or call on an official number if they felt apprehensive or unsure if the caller was legitimate.
He said: “No bank is going to be uncomfortable if you say, ‘I’m not sure, let me hang up and call back on the actual advertised number’.”
Mr Grant instructed people to not return a call on the original number, but to instead call the official number.
The official numbers are as follows: Bank of Butterfield — 295-1111; HSBC Bermuda — 295-4000; Clarien — 296-6969; Bermuda Commercial Bank — 295-5678.
Mr Grant recognised the embarrassment that may come with being victimised or clicking on an inappropriate link.
However, he said that coming forward as soon as possible was “a critical step to helping us to prevent future crime and/or stopping the fraudsters”.
Mr Grant also encouraged the community to “think before you act” and be vigilant instead of falling for any sense of urgency.
He said: “Oftentimes, an honest business will give you time to make a correct decision.
“Nothing is that urgent.”
Mr Grant suggested following the BBA’s podcasts on The Royal Gazette’s podcast series, as well as visiting Age Concern’s website and the police website.
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