An elderly woman who fell victim to an elaborate financial scam has been awarded compensation by the financial arbiter after it was determined that a Maltese-licensed payment provider, OpenPayd, had facilitated fraudulent transactions without her knowledge. The company has now been ordered to compensate her with £23,300 (€26,600) for processing payments that ultimately led to her financial loss.
The case is part of a wider pattern of fraudulent investment schemes that have left victims across multiple countries devastated. OpenPayd has been identified as one of several payment firms allegedly used by scammers to transfer funds from unsuspecting individuals to fraudulent trading platforms.
The woman was aggressively manipulated by fraudsters who convinced her to invest in cryptocurrency. The scammers gained her trust through persistent communication, coaching her to open multiple bank accounts and execute transactions under their guidance. They also exploited remote access software, AnyDesk, to take control of her phone, effectively making financial decisions on her behalf.
To further the illusion of legitimacy, the fraudsters directed her to set up accounts in her own name, including an account with OpenPayd. However, unbeknownst to her, the funds she transferred were being funneled into what is known as a virtual IBAN (International Bank Account Number). While the virtual IBAN appeared to be registered in her name, in reality, it was linked to a master account controlled by cryptocurrency exchanges. Once her money reached these accounts, it fell entirely under the control of the fraudsters, who swiftly withdrew the funds and disappeared without a trace.
Throughout the arbitration process, OpenPayd attempted to distance itself from liability by arguing that the victim was not directly their client. However, the arbiter, Alfred Mifsud, dismissed this defense, emphasizing that the company had played an instrumental role in processing transactions that enabled the scam. The ruling marks a significant shift, as previous cases against OpenPayd had been dismissed on technical grounds.
This case serves as a stark reminder of the sophisticated methods employed by fraudsters and the vulnerabilities within financial systems that allow such scams to persist. It also raises pressing questions about the responsibility of payment providers in preventing fraudulent transactions and protecting consumers from financial crime.
