Fraud, perpetrated through romance and package delivery scams, was the most prevalent threat posed to Guyana’s financial sector in 2021, according to the Financial Intelligence Unit (FIU) 2021 annual report.
The FIU disseminated 47 intelligence reports (IR) to local enforcement agencies with the Special Organised Crime Unit (SOCU) receiving the majority. Of these reports, 81% were related to fraud, money laundering and drug trafficking – all of which were also principal offences identified in the previous three years.
Of the 81%, package delivery fraud and romance schemes accounted for 38% of the reports.
“In 2021, package delivery fraud combined with romance schemes continued to be rampant and were responsible for 38% of all reports disseminated. Compared with 2020, the number of fraud-related IR reports disseminated increased 63% in 2021,” the report said.
This type of fraud was also described as an emerging trend linked to financial crimes, including money laundering and terrorist financing.
According to the report, several investigations are ongoing in relation to this type of fraud. Thus far, only one person has been convicted of the offence.
The report explained that scammers typically use social media platforms, such as Facebook and Instagram, to research and establish contact with potential victims. They find ways to gain their trust, such as pretending to have romantic interests to identify other vulnerabilities in the potential victim and then claim that they are in a position to provide financial and other assistance. Accomplices contact the victim, receive cash and pass it to the scammer.
“The scammer or the accomplice either requests more cash using fictitious scenarios or cease all communication with victim. Victims are sometimes told that large amounts of cash and jewellery in the package have triggered AML [Anti Money Laundering] investigations and more money is needed to expedite clearance of the package,” the report explained.
These type of schemes were also the main activities that triggered fraud-related suspicious transaction reports (STRs).
“The theory is that the increased use of the internet during lockdown has created, more opportunities for persons to connect with potential fraudsters online and for fraudsters to exploit users’ lack of awareness of possible fraud schemes through the internet,” the report stated.
It was stated that the FIU embarked on public awareness and information dissemination campaigns through local news media, mobile phone mass messages and through presentations at seminars to bring attention to the issue. However, despite this and publicised court cases, persons continue to fall victims of those type of schemes.
Most of the STRs originated within Region Four with Georgetown, the East Coast of Demerara and the East Bank of Demerara being the most affected areas. Factors that may have influenced the quantity of STRs from these areas include greater access to internet, infrastructure a, proximity of financial institutions and population density.
