Financial authority warns about scam

Next time you get an e-mail promising you easy money, think twice before going in for the "deal", the Malta Financial Services Authority has warned.

The MFSA has received reports on customers falling prey to a scam doing the rounds in many other countries, often promising very good money for modelling work, photo sessions or advertising campaigns.

Banks have told the authority that a number of hopeful consumers had approached them to cash travellers' cheques bearing the American Express logo in euro, US dollar or sterling which they received in part payment for any of the abovementioned services.

These cheques appear to be authentic to the untrained eye, complete with apparent watermarks, holograms and security thread. However, the authority said, the cheques were fraudulent and completely useless.

By the time consumers find out they may have already sent money to the fraudsters, which is what the scam hinges on.

The scam works as follows: People are targeted by foreigners to appear in a "photo session", after which the hopeful models are sent a number of travellers' cheques. They are asked to deposit them into their own bank account and then transfer the money to a third party via a money transfer facility; rarely through a bank. The excuse behind this unorthodox procedure is that the money is needed to cover photo session expenses.

The model is told she can keep a percentage, about 10 or 20 per cent, as her modelling fee. While the travellers' cheques would be worthless, the conmen hope the transfer would have been effected by the would-be model by the time she finds out, usually a few days after the bank receives notification from overseas during the clearing process.

After this, it is well nigh impossible to retrieve any funds sent by such money transfer facilities once they are withdrawn.

The MFSA said such scams often had telltale signs including poor writing, incredibly good offers, pressure to conclude the matter immediately, unnecessary secrecy and strange financial arrangements.

It said it was concerned that many of the victims did not bother asking the fraudsters elementary questions on the unorthodox arrangements. The MFSA asked consumers to remain vigilant by not responding to such e-mails, not giving out personal details, not sending personal documents and not sending out any money.

The MFSA said banks were informed of these scams and staff could provide guidance on request.

For more information contact the MFSA's customer complaints manager on Freephone 8007 4924, 2144 1155 or at consumerinfo@mfsa.com.mt.