Financial fraudsters typically prey on investors
that are looking to make a better than average return on their investments
and on those in desperate need of a loan.
They offer highly profitable, totally risk free
They promise readily available funding.
They often talk of bank to bank transactions.
They will cite major banks, central banks, the International Chamber
of Commerce, the International Monetary Fund, the United Nations
or any other organisation in order to give credibility to their
If you are invited to make, or save, a lot of
money by taking advantage of a unique opportunity, consider the
possibility that you are being defrauded.
The Commercial Crime Bureau, an International
body, has published reports on International Financial Fraud.
Banking Liaison Group has prepared a checklist
for its clients to alert them to the dangers.
Here is a list of questions you should ask yourself
- Do you know who you are dealing with?
- Were they introduced by people you trust?
- Have you carefully checked their credentials?
- Do you really understand the transaction?
- Does the documentation look truly professional?
- Does it contain complicated jargon or strange
- Are third world countries or tax havens involved?
- Are you asked to keep the details confidential?
- Are you asked to pay any fees in advance?
- Are you sure you will get your money back if
the deal falls through?
- Are any well-known banks or financial institutions
said to be involved?
- If so, have you independently verified this
with those organisations?
- Can you afford to lose any of the money that
you are asked to pay or invest?
- Can you really be sure that the transaction
will be completed?
- Does the deal sound too good to be true? If
so, it probably is.
More detailed checklists are available on
request for Financial Intermediaries, Solicitors and Banks.