Puerto Rico Scams: Act 60 Investor Incentives & Offshore Fraud Guide
Puerto Rico's Act 60 (formerly Acts 20/22) tax incentives have drawn crypto and wealth-relocation promoters, some fronting bogus investment and tax schemes, while its US ties expose residents to the full range of US-style impersonation and disaster fraud.
Emergency number: 911 — verify on official sources.
Last reviewed: 24 July 2026
Puerto Rico is a US territory with its own tax system, and its Act 60 program (which consolidated the earlier Act 20 export-services and Act 22 individual-investor incentives) offers dramatically reduced tax rates to businesses and bona fide residents who relocate there. This has made the island a magnet for crypto traders, fund managers and "wealth-relocation" promoters worldwide, and that credibility is exactly what fraudsters exploit: schemes are marketed as "Puerto Rico tax-exempt," "Act 60 approved" or run through Puerto Rico International Financial Entities to imply legitimacy they do not have. Because Puerto Rico is also part of the United States federal system, residents simultaneously face the full spectrum of US scams, including IRS and Social Security impersonation, disaster-relief fraud after hurricanes, and peer-to-peer payment scams.
Common scams
- "Act 60 approved" or "Puerto Rico tax-exempt" investment pitches that misuse the incentive program to imply an endorsement that does not exist
- IRS, Social Security Administration and Hacienda (Treasury) impersonation demanding urgent payment by gift card, wire or crypto
- Disaster-relief and FEMA-assistance fraud surging after hurricanes, including fake inspectors and contractors demanding upfront deposits
- Peer-to-peer payment scams via ATH Móvil, Zelle and Cash App where "buyers" or fake support agents trick victims into sending money
Tourist-specific scams
- Unlicensed taxis and "tour" drivers in San Juan and near the cruise port overcharging tourists without an agreed or metered fare
- Fake vacation-rental listings in Old San Juan, Rincón or the islands taking deposits for properties that do not exist or are already booked
- Timeshare and "vacation club" high-pressure sales presentations promising free excursions that lock buyers into costly contracts
- ATM skimming and card-cloning at unattended machines in tourist areas
Online shopping scams
- Phishing texts and emails impersonating local banks (Banco Popular, Oriental, FirstBank) or utilities (LUMA Energy, PRASA) asking customers to "verify" account details
- Fake online marketplace and Facebook listings taking payment for goods, vehicles or pets never delivered
- Smishing about undelivered packages (USPS/courier) or unpaid tolls (AutoExpreso) directing victims to credential-harvesting pages
- Social media accounts impersonating government agencies to promote fake grants, disaster payments or giveaways
Job scams
- Remote and work-from-home offers that overpay by check then ask the worker to wire back the difference, leaving them liable when the check bounces
- Fake recruiters charging upfront fees for training, equipment or "background checks" for jobs that do not exist
- "Reshipping" or package-forwarding roles that are fronts for moving stolen or fraudulently purchased goods
Romance scams
- Online partners met on dating apps or social media who build trust over weeks before requesting money for emergencies, travel or medical bills
- Romance contacts who pivot to "teaching" the victim crypto or forex trading, funneling them into fraudulent Act 60- or Puerto Rico-branded investment platforms
Investment scams
- Promoters selling "move to Puerto Rico and pay no tax" packages that bundle in unregistered securities, bogus funds or aggressive tax positions the client cannot actually qualify for
- Fraudulent operators invoking Puerto Rico International Financial Entities (IFEs), International Banking Entities or Act 60 status to lend offshore credibility to schemes marketed to investors worldwide
- Crypto and "digital asset" funds trading on the island's reputation as a crypto-friendly tax haven, promising guaranteed or outsized returns with no real registration
- Ponzi and "guaranteed return" clubs spread through relocated-investor, expat and social-media networks
How to report a scam here
- Verify any firm, fund or International Financial Entity is actually licensed with Puerto Rico's Office of the Commissioner of Financial Institutions (OCIF) before investing
- Report fraud to the US Federal Trade Commission and to the FBI's Internet Crime Complaint Center (IC3), since Puerto Rico is covered by US federal agencies
- File a police report with the Puerto Rico Police (Policía de Puerto Rico) for local incidents, theft or in-person fraud
- Report IRS or Social Security impersonation to the relevant federal inspector-general channels and do not pay; agencies do not demand gift cards or crypto
- For disaster-relief and FEMA-related fraud, report to FEMA's fraud channels and verify any inspector or contractor before paying
- Contact your bank or card issuer immediately and, for cross-border investment losses, also notify your home country's financial regulator
Local reporting & protection links
- Office of the Commissioner of Financial Institutions (OCIF) — Check that a bank, broker, fund or International Financial Entity is actually licensed on the regulator's official register before dealing with it.
- US Federal Trade Commission (FTC) — Report scams and identity theft; Puerto Rico residents are covered by US federal consumer-protection reporting.
- FBI Internet Crime Complaint Center (IC3) — File online-fraud, investment-scam and crypto-fraud complaints with the US federal cybercrime portal.
- Puerto Rico Police (Policía de Puerto Rico) — File a local police report for theft, in-person fraud and to obtain a reference number for insurance or bank claims.
Always verify reporting routes and emergency contacts on the official government or agency website for your country.
Bank & payment guidance
If you have already sent money, contact your bank or card issuer's fraud team immediately, using the number printed on your card or in the official app rather than any contact the scammer gave you. Say clearly that you were deceived into authorizing the payment, ask whether it can still be stopped or recalled and the receiving account reported, and record the reference number. For ATH Móvil, Zelle or Cash App transfers, report inside the app and to the bank at once, since these move instantly and are hard to reverse. Freeze or reissue any card whose details were shared, change your online-banking password, and keep all receipts and messages.
Evidence to preserve
- Screenshot all messages, profiles, websites and payment pages
- Save transaction references, account numbers and crypto wallet addresses
- Keep emails with full headers where possible
- Note dates, times, names and phone numbers used
Frequently asked questions
Does "Act 60 approved" or "Puerto Rico tax-exempt" mean an investment is safe?
No. Act 60 is a tax-incentive program for qualifying residents and businesses, not an endorsement of any investment. Scammers routinely attach that language, or claim to run through a Puerto Rico International Financial Entity, to sound legitimate. Always verify the specific firm or fund is licensed with OCIF, confirm any securities registration, and be deeply skeptical of guaranteed or tax-free returns.
The IRS or Social Security is calling about a problem and wants payment now, is that real?
Almost certainly not. Real US federal agencies do not call demanding immediate payment by gift card, wire transfer or cryptocurrency, and they do not threaten instant arrest. Hang up, do not pay, and contact the agency through its official channels. Report the impersonation to the FTC and the relevant federal inspector general.
How do I avoid disaster-relief scams after a hurricane in Puerto Rico?
Deal only with verified agencies and licensed contractors. FEMA inspectors do not ask for money, and legitimate contractors do not demand large cash deposits upfront or pressure you to sign immediately. Verify identities independently, get written estimates, and be wary of anyone claiming to speed up aid for a fee. Report suspected fraud to FEMA and the FTC.
Sources
- National regulator, police and cybercrime portals (verify on official sites)
- FTC / Action Fraud / Scamwatch consumer guidance