FBI Announcement on Standby Letters of Credit (SBLC) Scams
Posted: Thu Jul 29, 2021 3:35 am
From https://www.ic3.gov/Media/Y2019/PSA190318
If you are in any doubt about any of the bank instrument scams that are posted in this forum then take a read of the above warning from the FBI.
If you are in any doubt about any of the bank instrument scams that are posted in this forum then take a read of the above warning from the FBI.
The Internet Crime Complaint Center (IC3) has received complaints indicating fraud actors are fabricating business and financial industry connections, and access to international commodities markets in order to sell fictitious Standby Letters of Credit (SBLCs), which have resulted in significant financial loss to victims. Fraud actors claim they have connections to SBLCs at legitimate banks and use their purported business and ease of access to large sums of money to demonstrate legitimacy and draw in investors.
SCAM COMMONALTIES:While all of these elements may not appear in any one scam, it is common for several of them to occur. The defining characteristic, however, is the promise of a disproportionate return or loan without risk from a source, which is obscure or unable to be accurately verified. All of the other features serve either to add credibility to the investment or loan, or to entice or distract investors from asking the penetrating questions they should.
- Offering returns or loans that are disproportionate to the risk involved
- Mimicking of legitimate financial instruments like SBLCs
- “Non-recourse” or “forgivable loans,” where investors do not have to repay the loaned funds
- “Blocking of funds” or “proof of funds,” typically with the use of a SWIFT MT 799 or MT 760
- Being asked to pay an advanced fee prior to funding or to initiate the loan or investment
- Transfering funds overseas or using foreign banks
- Improper references to legitimate financial institutions without their knowledge or consent
- Unnecessary secrecy or the signing of a non-disclosure agreement
- Intricate explanations and excuses as to why the promised funds or returns have failed to materialize
- The use of escrow accounts, including attorney escrow accounts
- The term “monetize”