Central Bank issues warning on rising wave of fraudulent investment scams
The Bank of Namibia has raised alarm over an alarming surge in fraudulent investment scams, cautioning the public against falling victim to deceptive schemes that exploit references to the Government, its Ministries, Offices, and Agencies.
The Bank in a recent announcement said that it has identified a pattern of fraudulent activities attempting to offer unsolicited financial assistance for Namibia’s developmental initiatives. Perpetrators specifically target senior public figures, high-ranking government officials, politicians, and civil servants to lend an air of credibility to their fraudulent schemes.
These scams involve false claims of possessing vast investment funds, often valued in millions or billions of United States American Dollars or Euro, or a combination of both. The fraudsters assert that these funds will be allocated to finance Namibia’s development and support large-scale construction projects.
To substantiate their claims, the perpetrators present forged documentation, including copies of SWIFT money transfers and/or fabricated payment transactions to local commercial banks. The fraudulent documentation includes purported payment instructions suggesting that the funds are intended for the Government’s developmental initiatives.
The scammers go further, using the fabricated documentation to allege that recipient banks are withholding the funds, necessitating the Bank’s intervention to compel the release of such funds. In some instances, they insist that the Bank must open an account within its Government banking domain to receive the purported funds.
Upon careful analysis and verification, the Bank of Namibia has determined that the purported investment transfers through SWIFT money transfers and/or foreign payment transactions are non-existent. The presented documentation is confirmed to be forged, and crafted to lend an illusion of legitimacy to the nonexistent transactions.
The Bank emphasizes that documents associated with these scams exhibit noticeable flaws, including typographic errors, inconsistencies in information, and the use of counterfeit logos on letterheads from unknown origins.
In light of these developments, the public is strongly advised to exercise vigilance, recognize the distinctive features of these scams, verify information, and promptly report any suspicious activity to the Bank of Namibia at [email protected]. Alternatively, reports can be made to the Financial Intelligence Centre at [email protected] or to the Namibian Police Force for investigation and potential prosecution.
The Bank clarifies that it neither receives nor facilitates transactions on behalf of private individuals, legal entities, or legal arrangements, except when acting on behalf of the Government. While Namibia remains open to legitimate investments, individuals and entities must adhere to applicable domestic laws for validation before channeling funds into the country for designated projects.
Governor !Gawaxab underscored Namibia’s commitment to welcoming foreign direct investment while emphasizing the need to prevent the country from being exploited for fraudulent financial activities. He stated, “The integrity of the financial system cannot be compromised. The Bank of Namibia will remain steadfast in upholding its statutory commitment to safeguard the integrity and stability of the financial system and prevent its potential abuse through fraudulent means.”
The Bank reassures the public that it maintains constant vigilance and will continue to safeguard the integrity and stability of the financial system against fraudulent activities.
