The Eastern Caribbean Central Bank (ECCB) is urging all citizens and residents of the Eastern Caribbean Currency Union (ECCU) to stay vigilant against the rising threat of financial scams, including deceptive investment schemes and AI-powered frauds.

In this week’s episode of ECCB Connects, CEO of the Eastern Caribbean Securities Regulatory Commission (ECSRC), Alousia Faisal, discusses the growing threat of financial scams and offers practical advice on how individuals can protect themselves and their money.

Faisal defines financial scams as deceptive practices or fraudulent schemes designed to trick individuals into giving up their money or sensitive financial information. She explains that these scams fall under the broader category of financial fraud, which includes any illegal activity aimed at deceiving others for financial gain.

Faisal highlights several common types of scams including:

• Investment fraud schemes: These promise high returns with little to no risk and often involve fake investments or securities.
• Phishing scams: Fake emails, texts, or websites are used to steal personal information.
• Fake prize scams: These claim that individuals have won the lottery and must make a payment to claim the prize.

She cited the recent Creators Alliance financial fraud case, which affected several ECCU member countries, as a prime example of a pyramid scheme. In that scam, participants were encouraged to invest money and recruit others into the programme, with funds being converted to cryptocurrency and passed on to the scheme’s owners.

Faisal urges the public to recognise key red flags of financial fraud, such as:

• Programmes not authorised by regulators.
• Promises of zero risk and high returns in a short period.
• Schemes promoted by friends or family without proper verification.

A crucial protective step is verifying licenses from regulators to ensure the programme is authorised.

With the rise of emerging technologies, Faisal also warns about AI-based scams, where fraudsters use artificial intelligence to mimic voices and images of trusted individuals to trick victims.

If someone becomes a victim, Faisal advises reporting the fraud to local authorities, including the police and Financial Intelligence Units. The ECSRC also offers a complaint form on its website: www.ecsrc.com

For more information on financial scam protection, viewers are encouraged to watch this week’s episode of ECCB Connects on ECCB’s social media platforms.