The police have cautioned about a scam targeting Chinese nationals residing in the Maldives.
The scam involves fraudulent cryptocurrency transactions and has caused financial losses of MVR 2.9 million so far.
Police said they were investigating the matter, but did not say whether any money had been recovered.
"This scam mainly targets foreign workers in the Maldives, especially Chinese nationals, and takes place through fraudulent cryptocurrency transactions," the police said in a statement.
How the scam works
Scammers first contact local sellers of cryptocurrency, mainly those dealing with Tether (USDT). They deceive these sellers by fraudulently convincing them to act as ‘assistants’ in what is made to look like a normal currency exchange. The scammer provides the seller with a specific digital wallet address for the transfer.
At the same time, the scammer arranges for a foreign national, who has Maldivian Rufiyaa (MVR) in cash, to meet the cryptocurrency seller. The foreign national is led to believe that they are exchanging their MVR 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 verifying the money, the seller transfers the equivalent value of USDT to the wallet address provided by the scammer.
However, once the transfer is made, no money is deposited into the foreign national’s bank account. The scammer disappears with the cryptocurrency, leaving both the seller and the foreign national in dispute. The seller loses their cryptocurrency, while the ownership of the cash becomes contested, as both parties accuse each other when the USDT fails to reach the foreign national.
Police urged caution when buying and selling cryptocurrency or money and advised to confirm the credibility before confirming financial transactions.
They urged to report complaints to the police hotline at 3322111 or the National Emergency Call Center at 911. Complaints can also be lodged at police stations.
