There is ongoing debate over whether investing money in Iraqi Dinar currency is a legitimate avenue for investing or simply a polished internet "scam". Opinions from respected experts are to be found on both sides of the Iraqi Dinar currency debate. These expert opinions should be reviewed and carefully weighed before doling out cash to purchase dinar currency.

But what is not subject to debate is the fact that there have been clear cases of Iraq dinar fraud and scams that documented in the public record and which all investors considering Iraqi Dinar need to be aware of. We present here documentation of several such Iraqi Dinar scams for your information and education. Prudent investors are advised to be aware and alert to these issues:

Iraqi Dinar Scam Targets Iraqi dinar Websites!

  • As if the Iraqi dinar trade didn't have enough credibility problems. Now comes word that scammers have turned to ripping-off Iraq dinar websites. Iraqidinar.org is reporting that a couple of guys presenting themselves as wealthy middle-eastern royalty are offering to buy dinar websites for no money down, but promises of future millions! The scammers have a checkered past that is well-documented, including big problems with the Federal Trade Commission (FTC).

    While it may appear that this type of Iraq Dinar scam would not directly impact Iraqi dinar currency buyers, be forewarned that if scammers like these guys get control of established and successful Iraqi Dinar websites, they could be in a position to wreak havoc on the many thousands of people seeking to buy Iraqi dinar. Be forewarned too that this scam clearly shows how sparse the government oversight and regulation of the Iraqi dinar trade is. While else would scammers already caught by the FTC in one area turn their sights to the Iraqi dinar business?

    It is for this reason that we have long recommended that buyers go through eBay for Iraqi dinar transactions. eBay has a reputation to uphold and does not tolerate unscrupulous vendors remaining active on its site. Other buyers provide valuable comments and feedback about their satisfaction level, so you always have a good idea of what others are saying about a particular dealer.

    • Beware of false assurances of guaranteed or extremely high profits

    Among other things, this suit alleges the defendant (Smiley) "guaranteed that an investment of $1,000 would return $1,000,000....Smiley enticed investors into giving him money by making false assurances and promises, and by failing to advise them of material facts."

    Beware of unregistered or unlicensed currency dealers

    Beware of buying Iraqi dinar that has been illegally transported into the U.S.

    U.S. Army Major Charles E. Sublett was charged in an indictment, returned by a federal grand jury in Memphis, Tenn., on Jan. 5, 2010, and unsealed today following his arrest in Huntsville. According to the indictment, Major Sublett smuggled more than $100,000 in currency, concealed in a shipping package, into the United States from Iraq in January 2005. Major Sublett also allegedly failed to declare that he imported the money....According to the indictment, the package also contained $107,900 in U.S. currency and 17,120,000 in Iraqi dinar. Major Sublett allegedly failed to file a Currency or Monetary Instruments Transaction Report (CMIR) as required by federal law when transporting currency in amounts of more than $10,000 into or out of the United States.

    Beware of buying counterfeit Iraqi dinar

    From a report to Congress by the Office of the Inspector General of the Coalition Provisional Authority:

    • An Iraqi citizen operated an Iraqi dinar counterfeiting operation in Baghdad. A raid of the subject’s printing company seized a vehicle, six printing presses, and more than 20 billion Iraqi dinar. Subject was arrested and turned over to the Iraqi National Police.
    • An Iraqi citizen attempted to bribe banking officials in Iraq for their help in laundering counterfeit Iraqi dinar at their financial institution. DCIS agents assisted the 18th MP Brigade and the Iraqi National Police in arresting the subject and two accomplices. Seized subsequent to arrest were a vehicle, approximately $9,000, and approximately 440 million in counterfeit Iraqi dinar.

    Beware of buying stolen Iraqi dinar

    From a report prepared by the U.S. Army War College Strategic Studies Institute (SSI):

    Since the fall of Saddam Hussein, Iraq has been rife with criminal activities ranging from bank robberies and drug trafficking to kidnapping, oil smuggling, and extortion. Because of its cash economy, there are many opportunities for robberies, and it has been estimated that, on average, about a million dollars a month are stolen at gunpoint. As one report noted, Baghdad has become the bank robbery capital of the world. This appeared to be underlined in the summer of 2007 when three guards at the Dar al-Salam Bank in Baghdad stole what was widely reported to be $282 million but in fact was the far more modest amount of $282,000. More substantial robberies took place at al-Rafidian Bank ($1.2m), the Industry Bank, ($784,000), the Iraqi Trade Bank, ($1.8m), the Bank of Baghdad ($1.6million), the al-Warka Bank, ($750,000), and the Middle East Investment Bank ($1.32 million). In addition, as discussed in Chapter 4, “bank executives have been kidnapped from their homes for ransoms as high as $6 million.” In effect, both banks and bankers have become targets in what for the perpetrators has been a highly “rewarding” activity.

    In addition to bank robberies, criminals have also robbed those transporting money. This practice has extended well beyond Baghdad. In one robbery in Diala, armed men stole one billion Iraqi dinars ($860,000) from government accountants as they left a Diala bank with “bags of cash” to be used for social welfare payments for poor families. Identifying the perpetrators is difficult, but it seems likely that policemen and security guards are almost certainly involved in at least some of the robberies.

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