False Proof of Fund Fraud
How does it work?
Fraudster purports to be a businessman and alleges to the victim that there will be a major investment development project and financing is needed from the bank. But as it takes time for the movement of relevant funds, high return is thus given to attract the victim to lend funds to the fraudster for use as security for the bank. To gain the trust of the victim, the fraudster will use false proofs of bank deposits or assets to deceive the victim in lending the money. The fraudster will lose contact upon receiving the funds.
In addition, some victims are urgently seeking financing. The fraudster alleges that he is willing to lend funds to the victim but the victim is required to pay handling fees for the loan in advance. The fraudster will use false proofs of bank deposits or assets, causing victims to misunderstand that the fraudster is able to lend funds. After the victims pay the handling fees, the fraudster will then lose contact.
What is our advice?
- Understand the background of the person you are dealing with before making money transactions of large amounts.
- When dealing with some documents issued by banks or financial institutions, you should clearly understand the function and limitation of such documents. For example, an account balance document is to set out the bank account balance of the account holder at a particular time and date, but it cannot prove the situation of the account after the issue of the statement.
- Do not make important financial decisions merely based on documents of dubious origins.
- Be clear-headed and consider whether the transaction is reasonable. Do not lower your vigilance simply based on some supporting documents that are seemingly issued by banks or financial institutions.