PHILIPSBURG--The Central Bank of Curaçao and St. Maarten (CBCS) on Tuesday sounded the alarm and issued a warning to the public about fraudulent offerings, pyramid schemes and other coronavirus COVID-19-related scams.
These scams are promoted using the COVID-19 situation as a cover to victimise unsuspecting or vulnerable persons, considering that in times of economic stagnation and downturn people may be more inclined to try to make “easy money,” CBCS said in a press release.
A pyramid scheme is a type of fraudulent investment scheme that profits almost solely by recruiting other participants into the programme. CBCS urges the public to not fall into the pitfalls of a pyramid scheme. Signs of pyramid schemes include emphasis on recruiting; promise of high return in the short term; complex commission structure; no genuine product or service is offered; and easy money.
“Please note that schemes like Coin1 may be violating laws by evading legal requirements such as obtaining a licence from the CBCS to raise funds from the public for collective investment purposes. Please note that raising funds from the public for collective investment purposes without a licence from the CBCS is a punishable offence,” the Central Bank said.
“Furthermore, the CBCS is cognisant of the impact of the COVID-19 situation, and the vulnerability of persons who may have been directly impacted by the fall-out of COVID-19 measures.”
CBCS warned of the following scams capitalising on the unprecedented anxiety caused by the COVID-19 pandemic:
* Work-from-home scams where fraudsters are taking advantage of individuals looking for alternative sources of income due to COVID-19-related measures.
* Personal finance scams where fraudsters are using the fear of current economic conditions to target individuals, posing as a financial institution and requesting sensitive financial or personal information.
* Fake government messages where fraudsters may target individuals purporting to be government officials arranging government assistance and aid, prompting victims to provide their personal or financial details.
CBCS said it would continue to take preventive and repressive steps in its efforts to stop alleged pyramid and other fraudulent schemes from violating the rules and regulations of CBCS within the jurisdictions of Curaçao and St. Maarten. Persons who suspect or are aware of a pyramid or any other fraudulent scheme in Curaçao or St. Maarten are urged to contact CBCS at tel. +5-999-434-5500 or email
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CBCS also recommends that the public consult its website
https://centralbank.cw/warningnotices1 for a complete overview of recently-issued investors’ education information and warning notices.
