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Puerto Rico (PR)

Puerto Rico is a self-governing US Commonwealth (Estado Libre Asociado) in the northeastern Caribbean, offering a unique blend of vibrant Latin culture, US legal framework, and tropical island living.

Capital: San Juan
Region: Americas
Language: Spanish
Currency: USD ($)
Cost of living: Moderate (index 65)
Emergency: 911
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Scam Warnings

Common scams targeting expats in Puerto Rico.

Puerto Rico is a US territory: all federal consumer protection laws, FTC jurisdiction and FBI authority apply here. The island faces a distinct scam profile shaped by Act 60 tax incentive migration, recurring hurricane seasons, an elderly population and a large crypto/investment community. The OCIF (Office of the Commissioner of Financial Institutions) has issued specific warnings about deepfake investment fraud using the governor's image. DACO handles local consumer complaints; federal fraud goes to the FTC or FBI San Juan. The currency is USD and no SEPA protections apply.

Act 60 / Tax Incentive Fraud

critical

Fraudulent "Act 60 consultants" charge large upfront fees ($5,000–$20,000+) for fake or improperly structured decrees that fail to qualify for Puerto Rico tax benefits. Some promise Act 60 advantages without requiring actual bona fide residency — which constitutes IRS tax fraud as well as local fraud. The OCIF has documented scammers using deepfake videos of Governor González to promote fake investment products tied to Act 60 branding.

How to spot it
  • - Consultant promises Act 60 benefits without emphasising the 183-day residency requirement and substantial presence tests
  • - Large upfront fee demanded before any DDEC application is filed
  • - No verifiable DDEC-registered or Puerto Rico-licensed attorney or CPA credentials (check at prtc.pr.gov)
  • - Guarantee of approval regardless of your actual residency situation
  • - Social media video featuring a government official or celebrity endorsing the "opportunity" — check ocif.pr.gov for active fraud alerts
What to do: Only use DDEC-authorised service providers. Verify attorney or CPA Puerto Rico licensure. Apply directly at ddec.pr.gov. If you paid fees and suspect fraud, report to DACO at 787-722-7555, OCIF at ocif.pr.gov, or FBI San Juan at 787-987-6500.

Fake Real Estate Listings (Condado / Short-term Rentals)

critical

Fraudulent Airbnb-style or apartment listings for properties that do not exist or are already rented. Professional-looking listings collect deposit and first month's rent then disappear. Common targets: newly arrived expats seeking furnished apartments in Condado, Santurce and Old San Juan.

How to spot it
  • - Price is significantly below market rate for the location
  • - Landlord is overseas and cannot do an in-person showing
  • - Payment demanded by wire transfer, Zelle, Venmo or cash before any viewing
  • - Property photos appear copied from another listing (reverse image search)
  • - Pressure to commit quickly before "other interested parties" take it
What to do: Never wire money or pay via Zelle or Venmo before physically visiting the property. Use Airbnb or VRBO bookings with platform payment protection. For long-term rentals, verify the landlord's ownership via CRIM property records at crimpr.net. Report suspected fraud to DACO at daco.pr.gov or FTC at reportfraud.ftc.gov.

Investment / Crypto Fraud

critical

Puerto Rico's reputation as a crypto and investment haven actively attracts fraudulent schemes. "Guaranteed high returns," fake crypto trading platforms and Ponzi schemes target the Act 60 community and island residents. The OCIF documented a specific 2025 incident where a resident lost money to a deepfake video showing the governor promoting a fabricated investment product.

How to spot it
  • - Promises of guaranteed or unusually high investment returns regardless of market conditions
  • - Investment opportunity shared via social media, WhatsApp group or community referral
  • - Firm not registered with FINRA, SEC or Puerto Rico OCIF
  • - Pressure to invest quickly before a "limited window" closes
  • - Returns paid initially from new investor money (classic Ponzi red flag)
What to do: Verify any investment firm via FINRA BrokerCheck at finra.org/brokercheck and Puerto Rico OCIF at ocif.pr.gov. No legitimate investment guarantees returns. Report suspected fraud to SEC at sec.gov/tcr, FBI San Juan at 787-987-6500, or OCIF at ocif.pr.gov.

Hurricane / Storm Contractor Fraud

warning

After hurricanes or severe storms, unlicensed contractors appear door-to-door offering roof repair, tree removal and restoration services. They take large deposits and disappear, or perform substandard work that fails inspection. This was rampant post-Maria (2017) and recurs after every major storm. Puerto Rico averages several severe weather events per year.

How to spot it
  • - Contractor appeared unsolicited at the door immediately after a storm
  • - No written estimate or formal contract offered
  • - Demands 50% or more upfront before work begins
  • - Cannot provide a Puerto Rico contractor licence number for verification
  • - No local address, traceable phone number or verifiable business references
What to do: Only hire contractors licensed with Puerto Rico's Construction Industry Board. Verify licence at estado.pr.gov. Never pay more than 30% upfront. Obtain three written estimates. Report unlicensed contractors to DACO at 787-722-7555 or daco.pr.gov.

IRS / Hacienda Impersonation Calls

warning

Phone calls or emails claiming to be from the IRS or Puerto Rico Hacienda (treasury) demand immediate payment to avoid arrest, deportation or account seizure. Often target elderly residents and recent arrivals. Caller ID is easily spoofed to show government phone numbers.

How to spot it
  • - Caller demands immediate payment by gift card, wire transfer or cryptocurrency
  • - Threatens arrest, deportation or immediate account seizure
  • - Creates extreme urgency — "you must pay in the next 30 minutes"
  • - Caller ID shows a government number (this can be spoofed by anyone)
  • - Refuses to send any written notice or provide a verifiable case number
What to do: IRS and Hacienda NEVER demand immediate payment by phone, gift card or cryptocurrency. Hang up immediately. Verify by calling IRS at 1-800-829-1040 or Hacienda at 787-722-0216 directly. Report to FTC at reportfraud.ftc.gov or call 1-877-382-4357.

FEMA Assistance and Disaster Relief Fraud

warning

After hurricanes and natural disasters, scammers impersonate FEMA representatives, collect personal information and federal benefit payments, or submit fraudulent FEMA applications using stolen identities. Phishing texts and emails impersonating LUMA Energy or FEMA surge during and after every hurricane season.

How to spot it
  • - Unsolicited contact from a "FEMA representative" offering to file your claim for a fee
  • - Text or email requesting SSN, bank account details or login credentials for "FEMA assistance"
  • - Link in FEMA-branded message does not end in .gov
  • - Contractor claiming FEMA will fully reimburse any amount — FEMA reimbursement has specific limits
What to do: Apply for FEMA assistance only directly at disasterassistance.gov or by calling 1-800-621-3362. FEMA does not charge fees for assistance. Report fraud to the FEMA Fraud Hotline at 1-866-720-5721 or DHS OIG at 1-800-323-8603. Report phishing to FTC at reportfraud.ftc.gov.

Medicare / Medicaid Fraud

warning

Puerto Rico has historically elevated rates of healthcare fraud: phantom billing, kickbacks and unnecessary procedures billed to Medicare or Medicaid. Patients may unknowingly become involved when someone offers cash or gifts in exchange for using their Medicare card number. The FBI San Juan and HHS OIG actively investigate these cases.

How to spot it
  • - Healthcare provider or stranger offers cash, gifts or free services in exchange for your Medicare card number
  • - Your Medicare Summary Notice shows services, equipment or appointments you never had
  • - Provider bills for expensive durable medical equipment you were never given
  • - Unsolicited phone calls offering free health screenings in exchange for Medicare details
What to do: Guard your Medicare card like a credit card. Review your Medicare Summary Notice carefully. Report suspected fraud to 1-800-MEDICARE (1-800-633-4227) or the HHS OIG hotline at 1-800-HHS-TIPS (1-800-447-8477). Report to FBI San Juan at 787-987-6500 for large-scale schemes.

Phone Phishing and Identity Theft

warning

Phishing texts and emails impersonating LUMA Energy, Banco Popular, the SSA or USCIS request account credentials or Social Security Numbers. Particularly common around hurricane season when fake FEMA assistance applications are submitted using stolen data.

How to spot it
  • - Unsolicited text or email requests you to click a link to verify account details
  • - Sender email address does not match the official domain (e.g. lumapuertorico.com)
  • - Message creates urgency: "account suspended", "payment overdue", "verify now"
  • - Asks for your full SSN, passwords or financial account numbers
What to do: Never click links in unexpected texts or emails from utilities or government agencies. Go directly to official websites. Enable two-factor authentication on all bank accounts. Monitor credit free at annualcreditreport.com. Report identity theft at identitytheft.gov.

Timeshare Sales Pressure

info

Aggressive timeshare sales at SJU airport or resort areas offer "free gifts" or vacation packages in exchange for attending 90-minute presentations that run four hours or more with high-pressure tactics for overpriced timeshares.

How to spot it
  • - "Free gifts" or vacation packages offered in exchange for attending a presentation
  • - Presentation runs significantly longer than promised with escalating pressure tactics
  • - Sales agents create false urgency with "today only" pricing
  • - Contract terms are presented rapidly and reading is discouraged
What to do: Avoid all unsolicited timeshare offers. If you sign a contract, Puerto Rico law provides a 5-business-day rescission period — send written cancellation by certified mail immediately to the address in the contract. Report high-pressure tactics to DACO at 787-722-7555.

Reporting

Where to report: Puerto Rico Police Bureau (fraud unit): 787-343-2020. FBI San Juan Field Office: 787-987-6500 | tips.fbi.gov. FTC (federal consumer fraud): reportfraud.ftc.gov | 1-877-382-4357. OCIF (investment and financial institution fraud): ocif.pr.gov. HHS OIG (Medicare/Medicaid fraud): 1-800-HHS-TIPS (1-800-447-8477). IRS fraud hotline: 1-800-829-0433.

Consumer helpline: DACO (Departamento de Asuntos del Consumidor): 787-722-7555 | 3-1-1 (orientation line) | daco.pr.gov. Emergency: 911.