Fraud and scam refer to the exact same thing, and unsurprisingly, they seem to target every segment or industry that seems to gain popularity. Unfortunately, a moment of inattention is more than enough to lose thousands, if not more.
As if offshore banking isn’t seen with shady eyes already, some banks and institutions are making the whole situation even worse by grabbing customers’ money in illegal ways and failing to return them when needed.
Offshore banking is not in the best situation at the moment. With quite a few scandals over the past few years based on leaks and governmental institutions hunting citizens' money abroad, legitimate banks seem to struggle to get new clients due to this overall feeling of negativity.
Plus, requirements have never been more complex.
Now, there are more types of warning signs to pay attention to, and if some of them make perfect sense, some others can be difficult to identify by less experienced users.
Here’s what you need to know to ensure your wealth is safe.
The offshore concept for newbies
The problem with offshore applications is many newbies imagine financial havens, millions, no tax, no worries. This is only a concept, and it no longer exists, especially with the numerous partnerships between offshore banks and governments these days.An offshore bank can offer a bit of protection, some stability against political unrest, and better deals than what you could get in your own country, but that's it. Tax benefits are obtained by choosing the right jurisdiction for business rather than by a bank account.
The bank account is all about having a place to store your money. Indeed, some banks offer better deals than others. Fees could be lower, transactions could be faster, or perhaps you'll get a higher interest, but these are pretty much the only ways to make (or preserve) money through a bank account.
Most popular types of banking scams
Once again, banks are meant to store your money. They’re not investment opportunities, yet you can get a bit extra with lower fees or higher interest rates. If a bank or agent promises high returns, you're most likely talking to the wrong individual.Sure, banks will advertise their great rates, but that’s pretty much it. High profits won’t be used to attract new clients.
Then, unless you’re considering a bank with a top-notch reputation and branches all over, you need to ensure an institution is actually authorized to conduct such business. There’s a local regulator in every country out there.
Indeed, if you can’t speak the language or you’re not familiar with the respective jurisdiction, it may be a little difficult to check for such licenses. Just make sure you don’t take any numbers or licenses advertised on the bank’s website for granted.
Double check the contact info as well. If the address looks questionable, it's quite general (such as a main building in the city), or contacts are limited, you'll need to dig deeper. You can always double check an address using street view software and ensure there actually is a branch there.
In today’s age of technology and especially in the offshore industry, Internet banking is a must. You need access to your money whenever, wherever. If such services are shady or don’t exist at all, don’t bother, you’re likely to get scammed.
Finally, like anything else that involves money, it pays off reaching a bank or financial institution through recommendations and reviews from others.
Now, all these things are common sense. Such considerations should be an instinct when choosing a bank for your offshore applications. There are still newbies out there who may experience problems when making an application, but overall, everyone is aware of these general issues.
Keep in mind that scammers are often inventive and will try to find new ideas based on how the world evolves too. In other words, things can go even further, and no matter how authentic it may seem at first glance, a so-called institution could still be a fraud.
At a first glance
A professionally looking website isn’t everything. Anyone can do that. You might as well hire a professional to do it, it won’t cost a fortune. A few claims about saving the environment, carbon footprint things, saving forests, as well as links with numbers and percentages, that’s all you need.The first sign to pay attention to is the language.
Switch to the English version of the website if it's not already on, and look for punctuation or grammar errors. A reputable bank would never allow such errors, so poor English is usually a sign of a scam.
At first glance, you won't be able to use services on the official website. After all, you would need an account first, so you can't tell how solid the online banking system is or what kind of features you’d gain access to.
Take Seker Bank Offshore, for example.
It advertised to be a subsidiary of Şekerbank, once you got on its website, you could tell the text was written by an amateur. English was terrible, bringing in plenty of errors, a problem that no bank would ever accept.Certain documents, such as terms and conditions, were correct, but they were copied from other banks’ websites. Meanwhile, the so-called official website has been shut by the authorities, after agents used to approach people and ask for $10,000 deposits.
It’s unknown how many people have been scammed this way.
Pay attention to the claims too.
If you’re promised the world, the respective website should be categorized as a potential scam.
Look at every logo, especially toward the bottom of the homepage.
Banks don't advertise cryptocurrencies, so if you see crypto logos, you're likely to be scammed. Also, there shouldn't be any mentions about who designed the website or the theme, as reputable banks have in-house professionals doing such work.
Furthermore, the Turkish regulation prohibits anything involving cryptocurrencies, from crypto asset transactions and payments to various services from payment platforms.
To summarize, a banking website is only a presentation. It won’t tell you anything at all, apart from some warning signs. And even if you can’t spot them, it doesn’t guarantee authenticity.
Many times, scammers simply copy official documents from other banks’ websites.
Unsolicited letters? A big warning sign
It’s one thing to find a bank while searching for an institution in a particular jurisdiction. It’s a completely different thing for banks to email or send you letters out of nowhere, only to promote their services or recommend a good collaboration.While some banks do advertise on TV, or you may still find ads from them, unsolicited spam is always a bad sign. No matter how desperate a bank is for new clients, you’re less likely to get such junk.
Scammers, on the other hand, are more likely to do it in order to draw attention. While such requests are often ignored, the truth is there are people out there who fall for them.
There are people who still like the idea of getting rich overnight with some high commissions, which is clearly not going to happen.
Again, most people found out about Seker Bank Offshore by getting messaged by their agents out of nowhere. People started asking questions, only for more experienced users to reveal the scam.
In fact, you might find it surprising, but some law firms also recommend such wannabe banks. Why? They simply don’t know any better. Unscrupulous agents won’t care what happens to your money. They’re drawn in by big commissions for them.
One thing they don’t realize is at some point, they’re likely to get scammed as well.
The general idea is fairly simple to understand. Just because a random law firm recommends a bank. It doesn’t mean you should take it for granted. Do your research first. If you’re not happy with it, there are plenty of other similar law firms out there.
When you can’t check in person
Sometimes, you’d like to see things in person. But when you’re into offshore applications, you can’t always go there. It’s still worth it. Take it as a holiday. Go abroad for a week and do a bit of local research, simple as that.As you explore your options, keep in mind that despite being located in so-called financial havens, some banks may still be categorized as scams.
Take Cyprus, for instance. It's always been appreciated for its lower taxes, drawing the attention of numerous foreigners. However, if the bank is located on the northern side, that part is not really recognized by the international community.
Mainly comprising of Turks, it’s only recognized by Turkey. Institutions there might be affiliated to those in Turkey, but they’re not really abiding by Cypriot laws.
Euro Deniz IBU was a similar case a few years ago. The fake bank claimed to be part of DenizBank SA, a major Turkish bank. It managed to scam plenty of people before a massive investigation was started to identify the people behind the scam. Again, it was targeting offshore users.
While Turkish banks are allowed to accept foreign clients with some harsh requirements (such as being residents or working there), the truth is there’s a general issue with offshore applications in Turkey.
Interested in an offshore application in Moldova? Same problem. The eastern side of the country is known as Transnistria, and it's been recognized by other so-called countries in the same situation, such as South Ossetia, Artsakh, and Abkhazia.
That’s why it’s important to learn more about the jurisdiction you’re interested in.
Get in touch with the main bank
It’s much easier to start a scam based on a big reputable bank than starting from scratch.Scammers would most likely pretend to run the offshore segment of a particular bank or perhaps a branch in a different country as a subsidiary. They won't just start a new bank name from scratch because gaining a reputation is very difficult.
At first glance, it looks like the perfect opportunity. The main bank is a big name, so nothing could go wrong, right?
The truth is many times, main banks have no idea about such subsidiaries or international branches. They’re not official and affiliated.
There have been quite a few cases over the past years where scammers used names similar to official banks. They've pretended to be offshore departments, getting people to make deposits and giving them no access to banking services whatsoever.
To be 100% sure, find the original bank and make sure you get in touch with it. Check their contacts and do it by email or phone. Some banks also allow social media contacts.
Bank representatives won’t hesitate to let you know that they’re aware of such scams running around and involving their names. They don’t normally last. Their websites are usually closed within weeks.
Multiple users got in touch with Şekerbank to verify the bank advertising to be a subsidiary. It was confirmed that it was an ongoing scam using the official bank’s name.
The amount of money they ask for deposits should be enough to make you think twice. Whether you’re asked for $5,000 or €10,000, you should raise an eyebrow and ask yourself why. Sure, there might be some deposit requirements from official banks, but they’re not usually this high.
Dig deeper on the Internet
Finally, no matter what you’re after or what kind of bank account you need, don’t hesitate to dig deeper. Look for reviews and testimonials. If they don’t have a high rating, avoid them. Even if you do find a few positive reviews here and there, they could be fake, so don’t take anything for granted.Not enough information online? The bank isn’t probably well known. There’s a risk you’re taking, so simply look elsewhere.
If you know people in the same niche or with similar offshore operations, you can always ask for recommendations, but then again, don’t just sign up right away. Remember, you’re only getting a few names for research, you’ll still have to do your homework.
Look up forums, and discussion boards, you might as well start threads yourself and ask about such things, just in case you’re not 100% sure.
Even if there are no major deposit requirements, it doesn’t guarantee anything. The secret to a good scam is to provide the respective service for a while, only to get some recommendations and reviews. Patience is essential when running a scam.
That’s why you’re better off with a reputable and well established institution, even if requirements are a bit higher.
From a client’s point of view, the idea is to avoid rushing. No matter how good a deal may seem, you’re likely to lose more in the long run if you rush.
Keep in mind that even if you’ll only deposit $100, you’ll open that account to bring in more money overtime. A scammer won’t bother with $100, but may offer you a good service until you bring in $10,000 or more. That’s when problems arise.
On the other hand, avoid banks that invoke various difficulties when it comes to accessing your money, such as not accepting certain accounts or countries, IP related problems, or maintenance for days. Such excuses are only given to keep you sweet.
And the list goes on
Seker Bank Offshore and Euro Deniz IBU are not the only such examples. They’ve managed, however, to gain more popularity than other similar cases because the scam was better run.You can find fake banks and scams all over the world. Sometimes, they’re contraindicated by actual governments and financial authorities, so dig as deep as you can.
First Gulf International, AB Suisse, Allied Bank, Apex Development Bank APS, Asia Pacific Group, Basel Financial Trust, City Fidelity Trust Bank and CMS Private Banking are just as common.
As you can see, many words are used by reputable banks as well. If you had to make a decision based on the name, such institutions look authentic, yet they’re run by unscrupulous individuals looking for nothing but your money.
The list is much longer than this and many of them have been successfully annihilated, meaning their websites are gone, as well as references about them. However, given the inventive profile of modern hackers, there’s always a new similar scam under development.
It does pay off being familiar with the regulations and laws in certain jurisdictions as well.
In the end...
No matter what you're after, if it involves putting your money at risk, you do need to research and make sure you're going in the right direction. You do need to take your time, ask for help and dig deeper if you’re not convinced about something in particular, better to be safe than sorry.
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...so revenge is imminent, and it ends up costing them their business and the destitute of some of their (innocent) employees. 
