KTT Telex Scam Alert: Critical Notice To All Clients

At Prominence Bank, we take the security of your financial transactions very seriously. We have recently observed a significant rise in fraudulent activities associated with KTT (Key Tested Telex) transmissions, particularly involving the misrepresentation of bank instrument messages as cash transfers. This notice is intended to educate and protect our clients from these deceptive practices and to clarify our bank’s operational stance and responsibilities regarding all KTT-related transactions.

Understanding the KTT Telex Scam

Scammers operating within the financial ecosystem have been known to lure victims—especially investors and account holders—into believing that a genuine monetary transfer is being sent via KTT. However, upon execution, what is actually sent is a bank instrument, such as:

• MT-103 One-Way Credit Enhancements

• Standby Letters of Credit (SBLC)

• Bank Guarantees (BG)

• Documentary Credits or other structured financial instruments

These instruments do not constitute immediate liquid funds. Yet, the receiving party’s account is still liable for all associated fees, irrespective of their initial expectations.

Clarification on Legitimate Bank Instruments vs. Funds Transfers

It is essential to clarify that bank instruments sent via KTT are often legitimate financial instruments that serve real, verifiable purposes in international banking. These may include credit enhancement, trade finance guarantees, or structured settlement support.

For instance, a bank guarantee or standby letter of credit can be used to guarantee payment for a shipment of goods—such as sending an SBLC from a buyer in Europe to a factory in China to secure the release of products. In some cases, if the receiving bank accepts the instrument as valid security, the recipient may be able to obtain a loan or financing.

However, Prominence Bank does not issue loans, credit lines, or monetization services based on KTT-delivered bank instruments. Our institution acts strictly as a technical receiver, and we do not reclassify, convert, or interpret the intent behind the message content.

Therefore, if a client is expecting a funds transfer but instead receives a bank instrument, this does not mean the instrument is fake. It simply means that the sender issued a legitimate financial tool with a purpose other than direct cash delivery. Misunderstanding this distinction does not invalidate the instrument itself, nor does it relieve the account holder of processing fees.

We urge all clients to exercise due diligence and confirm in advance with their remitter whether they are receiving cash or an instrument.

How Scammers Operate

These fraudsters often operate by:

• Claiming that a KTT is a guaranteed cash transfer

• Promising investment capital, donation, inheritance, or project funding

• Using fake documentation, forged authorization letters, or fraudulent bank credentials

• Pressuring the client to “prepare” for a high-value KTT and misrepresenting the nature of the transaction

• Disguising bank instruments as cash deliveries to trick account holders into accepting fees and charges

Once the transaction is received, the client discovers that no cash has arrived, only a financial instrument of uncertain value and utility.

Prominence Bank’s KTT Handling Policy

Prominence Bank offers the technical capability to receive and process all forms of KTT transmissions into any account under our platform. However, we make the following critical clarifications:

• KTT Receiving Fee: Prominence Bank charges a 1.5% fee on the total face value of any received KTT, regardless of whether the KTT is a cash transfer or a bank instrument.

• No Upfront Charges: We do not charge any upfront fees for the receipt of a KTT. However, once the KTT is received and recorded into our system, the 1.5% processing fee is automatically deducted from the account holder’s balance.

• Irrevocable Obligation: The client is fully responsible for the fees once the KTT is delivered—regardless of the instrument’s nature.

• No Instrument Conversion: Prominence Bank cannot convert or modify a bank instrument received via KTT into a liquid cash credit. We do not reclassify KTT instruments. We act as a passive receiver and record what is delivered exactly as sent by the remitting institution.

• Transaction Irreversibility: Once the KTT is downloaded into the bank’s system, the transaction becomes non-reversible and the associated fees are triggered immediately. The client must have the required fee amount in their account in advance, or the bank reserves the right to debit other holdings or assets.

Our Recommendation: Use SWIFT Over KTT

For all clients seeking reliable, traceable, and secure fund transfers, Prominence Bank strongly recommends using SWIFT wire transfers.

Unlike KTT:

• SWIFT messages are standardized and widely regulated

• Funds are verifiable and traceable in real-time

• The receiving party has clarity and confirmation before charges apply

KTT transmissions, especially from unknown or unverified sources, carry a high risk and lack transparency. It is not possible for Prominence Bank to pre-verify or confirm the contents of a KTT message until it is fully received and processed.

How to Protect Yourself

1. Verify the sender’s legitimacy. Ask for credentials and confirmation from a regulated financial institution.

2. Do not accept transactions you do not fully understand.

3. Request a pre-advice or detailed breakdown of what will be transmitted.

4. Obtain written confirmation of whether the transmission is a cash transfer or a bank instrument.

5. Do not rely on verbal promises or unofficial documentation.

6. Keep a healthy level of skepticism with high-value unsolicited offers.

7. Consult with your private banker or compliance officer before accepting any KTT transaction.

Investor and Client Responsibility

Please understand that Prominence Bank does not intervene, authorize, or validate the intent of the remitter or the authenticity of the KTT content prior to its arrival. We only receive what is delivered via secure channels, and we do not alter or interpret the nature of the KTT Telex.

Therefore, clients bear 100% responsibility for ensuring that the originator of the KTT is legitimate, and for confirming whether the expected transaction is truly funds or a financial instrument. Misunderstanding or misrepresentation by your counterparty will not nullify our standard 1.5% processing fee.

Important Notice

We have encountered multiple cases of clients mistakenly believing they were receiving funds, only to find that a bank instrument was transmitted instead. These are not errors or malfunctions by Prominence Bank. They result from lack of client due diligence and misrepresentation by third-party remitters.

Prominence Bank’s sole responsibility is to receive, process, and post incoming KTT messages as delivered. We do not modify, restructure, or reclassify their contents. All fees are applied as outlined in our terms and conditions, without exception.

Client Advisory:

To avoid unexpected fees, financial loss, or legal issues, Prominence Bank advises all clients to:

• Avoid using KTT for critical or large transactions unless fully verified

• Opt for SWIFT-based transactions where possible

• Conduct rigorous due diligence on all KTT senders

• Ensure sufficient balance is available to cover the 1.5% processing fee

Prominence Bank remains committed to supporting legitimate international banking transactions and providing compliant, secure services. For questions or clarification regarding KTT procedures, please contact your account manager or our compliance team.

Stay Informed. Stay Protected.

Best regards,

Prominence Bank