By Rashneel Kumar, Cook Islands News
The Cook Islands Financial Intelligence Unit has documented a case where perpetrators created fake Facebook profiles to impersonate victims' friends and trick them into paying fees for non-existent prizes. Photo: 123rf.com
Vulnerable Cook Islanders are being targeted by online scams involving fake prizes and fraudulent financial documents, leading to financial losses and potential security risks.
The Cook Islands Financial Intelligence Unit (CIFIU) has detected two cases of online financial fraud, targeting vulnerable Cook Islanders. In one case, a victim lost $400, and in the other, an international entity sought verification of a $200 million proof of funds letter.
According to CIFIU, investigations into the online scams "International Monetary and Financial Committee and Sir Roy Pleasant" and "Cook Islands Development Bank and Shaw Holdings Pte Ltd" are ongoing.
The "International Monetary and Financial Committee and Sir Roy Pleasant" financial fraud scheme is operating via Facebook.
The CIFIU has documented a case where perpetrators created fake Facebook profiles to impersonate victims' friends and trick them into paying fees for non-existent prizes.
Scammers create counterfeit Facebook profiles mimicking the victim's actual friends and use false claims of substantial monetary prizes ($200,000,000) allegedly linked to legitimate organisations like the International Monetary and Financial Committee (IMFC), as deception.
Victims are instructed to pay "processing fees" of $400 to claim their non-existent prize and perpetrators use Facebook's message disappearing feature to eliminate evidence of communication.
According to CIFIU, victims are manipulated into sharing sensitive personal information including passwords and passport details and are directed to send payments via bank transfer to specific accounts.
In the documented case, funds were sent to a Wise Bank (formerly TransferWise). After initial payment, scammers typically claim non-receipt and push for additional payments through alternative methods (gift cards, Western Union).
The CIFIU received initial report from a private citizen regarding a potential scam involving fake Facebook profiles impersonating the victim's friends
After conducting its preliminary interview with the victim to document the nature of the scam, CIFIU analysed correspondence between victim and the perpetrator (agent) operating under an alias on Facebook. It documented the financial transaction trail, including account and transaction details, and analysed the perpetrator's methodology.
The CIFIU then conducted open-source checks on Wise Payments Ltd to understand the financial channel used and verified the legitimacy of the International Monetary and Financial Committee (IMFC) reference used in the scam.
"Perpetrators using legitimate entities as a front to appear authentic to the victim," the Cook Islands Financial Intelligence Unit said.
"The investigation is ongoing. Conducting enquiries with international counterparts to gather further intelligence."
In the other online scam, scammers are using counterfeit proof-of-funds documents issued under the name of a fake financial institution, the "Cook Islands Development Bank", to validate the supposed financial holdings of a non-existent company, "Shaw Holdings Pte Ltd".
The CIFIU confirmed that Cook Islands Development Bank is not a registered bank in the Cook Islands and any documents or claims associated with this entity are fraudulent.
In this scam, fraudsters contact individuals or businesses, offering financial services or investment opportunities linked to Cook Islands Development Bank or Shaw Holdings Pte Ltd.
They may present fake documents as proof of funds or legitimacy. According to CIFIU, these documents often look official but contain false information and unauthorised use of the Cook Islands' name.
"Victims may be asked to provide personal details, make an initial deposit, or engage in further financial transactions."
On 5 March,, an international entity sought verification from Financial Supervisory Commission of a proof of funds letter provided by Shaw Holdings Pte Ltd.
The CIFIU obtained and examined the suspicious proof of funds letter document and analysed the document for inconsistencies and red flags, identifying conflicting account numbers, improper bank name, misrepresentation of Financial Supervisory Commission's role and suspicious contact information and incomplete address.
The agency then conducted open-source research to verify the non-existence of "The Cook Island Development Bank".
"This entity is not a registered bank in the Cook Islands. Perpetrators are using their platform to scam vulnerable individuals with Cook Islands as a front. The Cook Island Development Bank - According to open-source Cook Islands Savings Bank and the Cook Islands Development Bank merged in 2001. Their assets were officially vested into BCI through legislation on June 30, 2001."
The CIFIU also found that there is no correlation between the entity, the Cook Islands Development Bank, and the BCI, and the legitimacy of the claimed administrator, determining no such person works in that role.
The authenticity of the email domain was found to be suspicious with poor security, and open-source checks on cidbank.org confirmed The Cook Island Development Bank website is using Cook Islands as a front to scam vulnerable individuals.
Background checks were also performed on Shaw Holdings Pte Ltd, which revealed that the physical address in Singapore is a construction site belonging to another entity.
The CIFIU disseminated an intelligence report to the Cook Islands National Security Directorate.
"This matter concerns national security as perpetrators are using their platform to scam vulnerable individuals with Cook Islands as a front," CIFIU said.
"The investigation is ongoing. Conducting enquiries with international counterparts to gather further intelligence."
The CIFIU also met with local financial institutions on 13 March to discuss developing internal staff training programmes and public awareness coordination.
-This article was first published by Cook Islands News.
