Government agencies and investigators keep alerting and warning people all year round about the dangers out there for financial fraud. However, Wymoo International investigators uncover so many cases of fraud every year that continuing to contribute with advice and warnings is imperative for us. International fraud will not stop, but people and companies can find ways to avoid falling victim. The following is a list of the top financial scams to be wary of this coming 2022, and what to do in each case.

Companies: Keep your eyes open to BEC scams

If you still do not know what a BEC scam is, you might already be in trouble. For the past few years, Business Email Compromise has been one of the greatest scams out there. In the United States only, the Internet Crime Complaint Center received almost 2000 reports of BEC scams in a year, with losses of over $1.8 billion. You read right, billions. Online criminals gain access to legitimate email accounts mostly by tricking the owners into providing the credentials in some way: phishing, pretending to be an IT officer in the company, or others. The fact is that when a scammer is able to access the email, they will use it to deceive other people in the company (people with access to the company’s bank accounts) to send funds to the fraudsters. Of course, the scammers have all sorts of convincing stories, like the payment information of a provider changed, or there is an emergency payment that needs to be done to redirect a shipment, etc. The goal is to direct a big cash payment to a scammer’s pocket. Most of the times, the money is sent to a crypto wallet where it is untraceable and unrecoverable.

What to do to avoid being a victim? In the first place, always verify the people and companies you do business with. Company verifications and international due diligence services are especially important to remain safe. It is also extremely important to have clear procedures for employees that handle the company’s bank accounts and to hire employment screenings regularly to mitigate the risks of having an inside job issue.

Crypto scams are reaching everyone

A cryptocurrency is a digital token that can be exchanged for goods and services. But many retail investors and companies treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date. Cryptocurrencies are highly speculative by nature. They lack traditional fundamentals that investors can analyze and assign value to. As a result, cryptos tend to be highly volatile assets and their prices can drastically change on any given day. Crypto markets are unregulated in general, so it’s easier for bad actors to take advantage of unsuspecting investors. However, digital currencies not only a problem for investors, but mainly for everyone. Since crypto-wallet owners are anonymous, scammers are using this method to request money in romance scam cases, as payment for fake online shopping websites, and more.

What to do to avoid being a victim? If you are trading digital currencies, make sure you hire a background check investigation to verify the agent and company you are using to buy and sell your coins. The same applies to anyone else who is not investing but has somehow ended up in a situation where crypto payment is required: hire a professional private investigation company to conduct a real background check investigation and verify the people or company you are dealing with are legitimate.

Always keep in mind that clear evidence is the best tool to staying safe and profitable! Contact us if you need to conduct an international private investigation.

C. Wright
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