Fiji Financial Intelligence Unit notices rise in cases of individuals and businesses falling victim to scams

The Fiji Financial Intelligence Unit has noticed a continuous rise in cases of individuals and businesses falling victim to email compromise and spoofing scams.

The unit is advising commercial banks, financial institutions, businesses and members of the public to exercise caution when handling email payment instructions for import trade transactions and large value personal outbound foreign remittance transactions.

Since 2014, 39 businesses and individuals have lost funds totaling $5 million in foreign remittance transactions to cybercriminals through email compromise scams.

Only $169,000 was recovered.

In March this year, an email account of a local bank customer was compromised and a fraudulent payment instruction was sent to the local bank.

Approximately FJ$575,000 was transferred to a foreign bank account belonging to a cybercriminal syndicate.

In September this year, in a case involving cyber money laundering, FJ$556,000 was fraudulently transferred from a local business bank account to an offshore “incorrect” bank account number.

In this case the foreign supplier’s business email was compromised.

There were other cases in October 2018.

Proceeds of approximately FJ$27,000 from sale of investment shares of a local investor who  is residing abroad, was remitted to a cybercriminal’s bank  account in another country as a result of email compromise of the investor.

There was another case in October where an estate property settlement proceeds totaling approximately FJ$845,000 was remitted to the foreign bank account of a cybercriminal who pretended to be the beneficiary of the estate.

It appears that email accounts of the beneficiary and the local party were compromised.

The Financial Intelligence Unit says email compromise involves the cyber attacker often utilising social media platform and online social engineering techniques to trick internet users to unknowingly install malware such as keylogger, computer virus, worm, Trojan Horse and Spyware onto their computers, workstations or wireless devices.

This is an effort to compromise and steal personal sensitive information such as email and other online account login credentials. 

The unit says once the cyber attacker gets access to the account, they can then monitor emails, intercepting those that contain an invoice or a payment instruction to the commercial bank.

The cyber attacker then changes the payment instructions on a chosen invoice or intended transaction and allows it to be processed usually with the funds going straight into a bank account of a cybercriminal syndicate instead of the intended and rightful beneficiary.

Email spoofing is the creation of email messages with a fake or look‑alike email sender address to mislead the recipient about the origin of the message.

Cases reported to the Financial Intelligence Unit show that look‑alike email addresses were used between local business entities and their overseas suppliers regarding orders for import of goods.

Cases also involve non‑trade related personal foreign remittance transactions.

Any suspicious overseas trade transaction or large personal remittance that could be linked to email compromise and spoofing scams should be immediately reported as a suspicious transaction report to the Fiji Financial Intelligence Unit. 

It says commercial banks and remittance service providers are required to conduct enhanced due diligence for suspicious payment instructions.