FID reports worrying trend of refund fraud in Jamaica after over $130 million targeted through more than 100 instances

Over $130 million dollars was targeted through over 100 instances of refund fraud in Jamaica.

In refund fraud, the fraudster uses stolen credit card credentials to make an online purchase, and then contacts the e-commerce store to request a reimbursement. 

The Financial Investigations Division (FID) said it has taken note of a worrying trend which was identified between January and June.

Several banks and account holders have been affected so the FID has had discussions with financial institutions and is now alerting members of the public to be vigilant about their accounts. 

In a statement, the FID said over the six-month period it uncovered 120 instances of refund fraud, involving 840 transactions.

The instances affected 14 commercial banks, and 6 credit unions. 

The transactions also include 798 processed and 42 attempted, with a monetary value exceeding $133 million.

The fraudulent activities affected 140 persons and targeted 135 overseas merchants. 

The FID said investigations revealed that the perpetrators are all Jamaicans from all parishes.

It said Kingston and St. Andrew and St. Catherine accounted for over half of the refund fraud transactions.

In response to these findings the FID has engaged relevant stakeholders across the financial sector to disseminate information about this emerging trend and provide effective mitigating strategies. 

Principal Director of Investigations at the FID, Keith Darien said substantial efforts are underway to combat this issue effectively and bring perpetrators to justice.


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