MVR 2.9m stolen from expats in cryptocurrency fraud scheme
The funds were stolen from foreign workers through fraudulent cryptocurrency transactions targeting mainly Chinese citizens
Police officers active in Hulhumalé as part of an operation
The Maldives Police Service (MPS) has reported that MVR 2.9 million has been stolen from foreign workers through fraudulent cryptocurrency transactions.
The police institution revealed that new types of fraud cases targeting foreign workers are being reported to institution. They said that so far, these cases have resulted in financial losses of MVR 2.9 million.
MPS added that these fraudulent acts are carried out through deceptive cryptocurrency transactions, and the perpetrators mainly target Chinese citizens living and working in the Maldives.
According to the police, the fraudsters first contact cryptocurrency sellers in the Maldives, particularly those who deal in Tether (USDT). The fraudsters deceive the USDT seller by proposing a foreign currency (Chinese Yuan) exchange transaction at a favorable rate. At this stage, the fraudster provides the seller with a specific digital wallet address for transferring the funds. The police say this is the beginning of the entire fraudulent operation.
Subsequently, the fraudster arranges for a foreign national who carries Maldivian Rufiyaa in cash to meet with the cryptocurrency seller. The foreign national participates in this transaction believing that the Maldivian Rufiyaa in their possession will be exchanged for foreign currency that will be deposited into their bank account.
When the two parties meet, the foreign national hands over the cash to the cryptocurrency seller. After counting and checking the money, the seller transfers an equivalent amount of USDT to the wallet address provided by the fraudster, according to MPS.
However, after the transfer, no money is deposited into the foreign national's bank account. Instead, the cryptocurrency is transferred to the fraudster's wallet. The police say that a dispute then arises between the USDT seller and the foreign national, with the seller losing their cryptocurrency. The police stated that the conflict is over the ownership of the cash. When the foreign national doesn't receive the USDT, both parties accuse each other of fraud and report the matter to the police at that point.
MPS has urged caution in cryptocurrency or money exchange transactions. They advise always verifying the identity of the person involved in a financial transaction and not to trust unknown third parties who claim to connect buyers and sellers. They also recommend against agreeing to send money or cryptocurrency to accounts or wallets of unfamiliar people who are not physically present.
The police institution revealed that if someone makes such a proposal, or if doubts arise during a financial transaction, or if one believes they have fallen victim to such a fraudulent act, they should immediately report it to the Maldives Police Service hotline at 3322111 or the National Emergency Call Center at 911. Alternatively, they can visit the nearest police station to file a report.
Further investigations are currently underway in connection with these cases.
