Beware of COVID-19 Scams (2020-04-02)

Summary

This is a public awareness notice issued by the Cayman Islands Monetary Authority (CIMA) on 2 April 2020, warning about an increased risk of fraud and scams during the COVID-19 pandemic as businesses shift to remote work and non-face-to-face services. It is addressed both to financial services licensees/registrants and to the general public/consumers.

For Licensees and Registrants

In line with guidance from other international regulators, CIMA recommends that licensees and registrants strengthen their fraud risk management through the following measures:

• Updating fraud risk assessments
• Running staff training
• Monitoring for new threats arising from remote working
• Integrating fraud/cybercrime prevention into internal policies
• Verifying counterparties and beneficiary account details
• Using fraud-prevention clauses in application forms
• Taking precautions against 'Zoom-bombing' of business meetings

For the Public

CIMA warns that scammers are using phone, email and social media to obtain money or personal, financial, or medical information, including through fake vendors of health supplies and fake charities.

• Advice: Do not share information with unknown parties or click unrecognised links, and only communicate with financial institutions via official channels.
• If victimised: Contact your financial institution and the Royal Cayman Islands Police Financial Crime Unit.

This notice is informational and advisory in nature; it does not amend any rule or law, and the recommended fraud-prevention measures are framed as suggestions rather than binding legal requirements.

Applies to

financial services providers, licensees, registrants