In my most recent blog, I described an advance fee scam based in Senegal. In this scam, the victim must produce an "anti-money laundering certificate" in order to receive a purported monetary award.
I subsequently received a message from a British lawyer born in Senegal, who assured me that I was correct in my assumption that the scheme I described was a scam.
"Everything about this claim is false—even the name of the lawyer (a totally foreign and English sounding name). Plus in Senegal, we don't use the word 'Barrister,' but the French equivalent "Me" (short for Maitre). This and a lot more in your article show that you're dealing with an English-speaking thug using Senegal as a front."
Still, I receive several messages every month from apparently intelligent readers who are taken in by advance fee scams. What warning signs should you look out for to identify them as a scam?
Here are some of the most commonly encountered advance fee scams:
- Jackpot scam. You've won the jackpot or the lottery, but to receive your prize, you must first pay various fees
- Inheritance scam. You've inherited a large sum of money from a mystery relative or some other person. To claim your inheritance, you must first pay taxes and fees.
- Murdered politician scam. The widow or child of a dead politician in a third-world country contacts you for assistance. The politician stashed away a few million dollars in a foreign bank account, but the widow/child can't get to it without your help. You'll get a percentage of it if you help retrieve the funds, but first you must send money to a "lawyer."
- Company representative scam. A foreign company wants your help to process payments from its customers. They want to use your bank account to process checks, money orders, credit card payments, etc. But first, you must pay a fee. In a variation of this scam, you actually begin receiving payments from customers through your bank account. You get to keep 10% or so of the money in exchange for forwarding the funds. A few weeks later, your bank informs you that the checks were stolen or counterfeited, and that you owe it thousands of dollars.
- Government contract scam. Someone who has purportedly won a lucrative contract with a government in Africa contacts you for assistance. If you help him bribe the appropriate officials to finalize the contract, you'll receive a portion of the proceeds.
- Dying widow/wealthy merchant scam. A wealthy widow or wealthy merchant is suffering from terminal cancer and wants your assistance in funding the victim's favorite charity. You'll get a portion of the inheritance, but first, you must send money to a lawyer.
- Rich investor scam. A wealthy investor wants to invest millions in your business. But first, you must send money to a lawyer to draw up a contract.
- Loan scam. You've been awarded a loan on very favorable terms, but first, you must send money to pay various fees or taxes.
- Oversized check scam. A foreign person wants to buy merchandise you advertised on e-Bay or elsewhere, but mistakenly draws up a cashier's check for a larger amount. He asks you to wire the balance to a "shipping agent" before sending the payment.
- Recovery from scam scam. The FBI, IRS, or other law enforcement agency contacts you by e-mail and asks for your assistance in recovering money from advance fee fraudsters. First, however, you must send them money. (Law enforcement agencies never do this, but this doesn't stop scammers from impersonating them.)
- Credit card scam. You've won a credit card with a million-dollar credit limit. But first, you have to pay a few thousand dollars as an "activation fee."
- Job or immigration scam. You've just been awarded a lucrative employment contract or visa to an EU country. But first, you need to send money to a fake immigration official or lawyer.
- Lonely hearts scam. A beautiful woman you meet online wants you to marry her. She wants to come visit you in the United States (or wherever you live). But first, you must send her money for a airline ticket.
There are many other variations. In all of them, you must send money. When you ask where the money is that you were promised, you'll be told "difficulties have arisen." To resolve the difficulties, you must send--you guessed it--more money.
Advance fee fraud is almost unbelievably successful. According to the Ultrascan global investigations group, advance fee fraud is the world's most lucrative scam, netting more than US$4 billion annually from its victims.
Now that you know what type of "pitch" an advance fee scam consists of, what other warning signs should you watch for? Here are a few clues:
- The message is labeled "confidential,” “urgent,” “secret” and demands that you act immediately
- The sender claims to be a wealthy person, a military officer, or a high-level government official
- A central bank or other government institution is involved (in many cases, the Central Bank of Nigeria)
- You must provide extensive personal information, including bank account numbers, passport details, etc.
- You must obtain forged or false documentation; e.g. an Anti-Money Laundering Certificate
- Requests that funds be sent via Western Union or through a similar untraceable method.
Knowing these facts, you're much less likely to be taken in by an advance fee fraud. Be careful!!
Copyright © 2008 by Mark Nestmann
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