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Advance fee fraud (aka Nigerian or 419 fraud)

Advance Fee Fraud (aka Nigerian or 419 Fraud)

From Email Scamdex

The perpetrators of Advance Fee Fraud (AFF), known internationally as "419" fraud after the section of the Nigerian penal code which addresses fraud schemes, are often very creative and innovative.

In almost every case there is a sense of urgency;
The victim is enticed to travel to Nigeria or a border country;
There are many forged official looking documents;
Most of the correspondence is handled by fax or through the mail;
Blank letterheads and invoices are requested from the victim along with the banking particulars;
Any number of Nigerian fees are requested for processing the transaction with each fee purported to be the last required;
The confidential nature of the transaction is emphasized;
There are usually claims of strong ties to Nigerian officials;
A Nigerian residing in the U.S., London or other foreign venue may claim to be a clearing house bank for the Central Bank of Nigeria;
Offices in legitimate government buildings appear to have been used by impostors posing as the real occupants or officials.

The most common forms of these fraudulent business proposals fall into seven main categories:

Disbursement of money from wills
Contract fraud (C.O.D. of goods or services)
Purchase of real estate
Conversion of hard currency
Transfer of funds from over invoiced contracts
Sale of crude oil at below market prices

How does it work?

The most prevalent and successful cases of Advance Fee Fraud is the fund transfer scam. In this scheme, a company or individual will typically receive an unsolicited letter by mail from a Nigerian claiming to be a senior civil servant. In the letter, the Nigerian will inform the recipient that he is seeking a reputable foreign company or individual into whose account he can deposit funds ranging from $10-$60 million that the Nigerian government overpaid on some procurement contract.

The criminals obtain the names of potential victims from a variety of sources including trade journals, professional directories, newspapers, and commercial libraries.

They do not target a single company, but rather send out mailings en masse. The sender declares that he is a senior civil servant in one of the Nigerian Ministries, usually the Nigerian National Petroleum Corporation (NNPC). The letters refer to investigations of previous contracts awarded by prior regimes alleging that many contracts were over invoiced. Rather than return the money to the government, they desire to transfer the money to a foreign account. The sums to be transferred average between $10,000,000 to $60,000,000 and the recipient is usually offered a commission up to 30 percent for assisting in the transfer.

Initially, the intended victim is instructed to provide company letterheads and pro forma invoicing that will be used to show completion of the contract. One of the reasons is to use the victim's letterhead to forge letters of recommendation to other victim companies and to seek out a travel visa from the American Embassy in Lagos. The victim is told that the completed contracts will be submitted for approval to the Central Bank of Nigeria. Upon approval, the funds will be remitted to an account supplied by the intended victim.

The goal of the criminal is to delude the target into thinking that he is being drawn into a very lucrative, albeit questionable, arrangement. The intended victim must be reassured and confident of the potential success of the deal. He will become the primary supporter of the scheme and willingly contribute a large amount of money when the deal is threatened. The term "when" is used because the con-within-the-con is the scheme will be threatened in order to persuade the victim to provide a large sum of money to save the venture. The letter, while appearing transparent and even ridiculous to most, unfortunately is growing in its effectiveness. It sets the stage and is the opening round of a two-layered scheme or scheme within a scheme. The fraudster will eventually reach someone who, while skeptical, desperately wants the deal to be genuine. Victims are alost always requested to travel to Nigeria or a border country to complete a transaction. Individuals are often told that a visa will not be necessary to enter the country.

The Nigerian con artists may then bribe airport officials to pass the victims through Immigration and Customs. Because it is a serious offense in Nigeria to enter without a valid visa, the victim's illegal entry may be used by the fraudsters as leverage to coerce the victims into releasing funds. Violence and threats of physical harm may be employed to further pressure victims.

In June of 1995, an American was murdered in Lagos, Nigeria, while pursuing a 4-1-9 scam, and numerous other foreign nationals have been reported as missing. Victims are often convinced of the authenticity of Advance Fee Fraud schemes by the forged or false documents bearing apparently official Nigerian government letterhead, seals, as well as false letters of credit, payment schedules and bank drafts. The fraudster may establish the credibility of his contacts, and thereby his influence, by arranging a meeting between the victim and "government officials" in real or fake government offices. In the next stage some alleged problem concerning the "inside man" will suddenly arise.

An official will demand an up-front bribe or an unforeseen tax or fee to the Nigerian government will have to be paid before the money can be transferred. These can include licensing fees, registration fees, and various forms of taxes and attorney fees. Normally each fee paid is described as the very last fee required. Invariably, oversights and errors in the deal are discovered by the Nigerians, necessitating additional payments and allowing the scheme to be stretched out over many months.

Several reasons have been submitted why Nigerian Advance Fee Fraud has undergone a dramatic increase in recent years. The explanations are as diverse as the types of schemes.

The Nigerian Government blames the growing problem on mass unemployment, extended family systems, a get rich quick syndrome, and, especially, the greed of foreigners. Indications are that Advance Fee Fraud grosses hundreds of millions of dollars annually and the losses are continuing to escalate. In all likelihood, there are victims who do not report their losses to authorities due to either fear or embarrassment. If you feel you have been a victim of any of these schemes contact your local Law enforcement (High Tech Crimes Unit) office for assistance.

Components of the Nigerian Letter Scam

The Nigerian Letter Scam and its infinite variations has been around since the late 70's and is probably known by every fraud officer in the world. This scam has now moved from being committed through snail mail to being committed via e-mail but its essential components are remain the same. The only difference is that the perpetrators have become more sophisticated in their letter writing.

In its simplest form, the scam involves an innocent recipient who receives a letter from an individual posing as a Government Official or an officer of a Nigerian state business who claims to have stolen millions of dollars and needs to get the money out of the country. The person cannot use his own bank account and therefore asks to send money to your bank account after which he would give you 10-35% of the money in exchange for this service. Once the fraudster has your account number he then empties your account.

Why does this scam still around? Probably because the scam still claims victims each year.

Let us look more closely at this scam so that you will easily recognize it and understand why it is so effective:

1. The Request. The person sending the letter or email is:

usually a civil servant who claims to be a member of a contract awards committee or another similar individual who is in a position to know of some kind of governmental corruption. For example, the Nigerian National Petroleum Corporation (N.N.P.C);
usually a doctor or is a member of some other profession to give the appearance that you are dealing with some law abiding member of society;
sometimes a woman since most people feel less suspicious when dealing with women;
from Nigeria (hence the name of the scam) or from another similar country. This scam is identified with individuals in Nigeria or another similar country where government corruption is material and the will of the state to stop this crime is minimal.

2. The Pitch. The civil servant claims that the Committee has deliberately over invoiced a foreign contract to the tune of US$21.5M. U.S. Dollars or some other large amount. The Committee now wants to get the money out of the country but needs a safe account to deposit the funds. Your help is needed and for your help you will get 10% to 35% of the proceeds. The story succeeds in attracting victims because it is plausible. Westerners have the misconception that there is much corruption in developing country governments.

3. The Carrot. The amount that the civil servant wants to share with the victim is a sufficient amount for the victim to retire on. With this once in a life time opportunity in the face of the victim, it would be difficult not to be interested in investigating this opportunity a little further.

4. The Cover-up. There is usually a phrase in the letter that states that because of the Committee's connections, it will be able to get the funds out of the country without risk and that all evidence of the over-invoicing will be destroyed. With all these connections then, why can't this committee open a bank account overseas without the need of a third party?

5. The Urgency. To add a sense of urgency to the story, the civil servant claims that an audit committee is about to conduct a search of the Committee's records soon. As such, you are requested to make a decision quickly.

6. The Sting. Now that you have been set-up, the civil servant requires one of 2 things. The typical request is for personal banking information such as your bank account number, the name and address of your bank and the account name. That is all the civil servant will need to empty your bank account. In some cases the civil servant asks you to forward some money to assist in getting the money transferred out of the country. You can bet that you will
never see such money again.

Now you know what the Nigerian Scam is and why is works. The more important question is why do people fail to recognize that if the above scenario were true and the victim is successful in getting some money, then the victim would in effect be committing a crime as well. There must be some kind of rationalization going on within the victim. The story involves corruption. If the victim thought about it longer, he or she would realize that helping a corrupt committee move over-invoiced funds offshore is also a crime.

That summerizes the essence of the scam. Some variations include the request to speak and meet with you. There are cases of victims meeting the scamsters either in Nigerian or in another foreign country and being kidnapped. The families of the victims are then asked for a ransom.

If you do receive a Nigerian Scam letter, the best advice is simply to delete the email or throw the hard copy of the letter in the wastebasket. Never contact these individuals and if any of these individuals contact you, contact your local police force for assistance.

We have set out below 3 examples of actual Nigerian scam letters that we have received. One is not from Nigeria, but it is a variation. Review and become familiar with them so as not to become the next victim.

= = = = sample letter or email = = = =

Dear Sir,

URGENT BUSINESS PROPOSAL.

This letter may come to you as a surprise since it is coming from someone you have not met before.
However, we decided to contact you based on a satisfactory information we had about your business
person as regards this business information concerning your country and the safety of our funds
in a steady economy such as that of your country compared to our country Nigeria, Africa.
I am a civil adviser currently working with the Nigerian National Petroleum Corporation (N.N.P.C).
I and my close and trusted colleagues need your assistance in the transfer of US$50 million
into any reliable Account you may nominate overseas.

This fund was generated from over-invoicing of contracts executed by the N.N.P.C. under our control
and supervision. This fund is now ready to be remitted into any account we put forward for that
purpose.
What we want from you is a good and reliable company or personal account into which we shall transfer
this fund.

Details should include the following:
1. Name of Bank.
2. Address of Bank with fax and tel. number.
3. Account number.
4. Beneficiary/Signatory to account(Account name).

Upon the successful crediting of your account, the fund will be shared as follows:
1. 25% to you for your assistance.
2. 70% for myself and my colleagues.
3. 5% for contingency expenses.

Please after your first reply through e-mail, I will want us to continue further communication by fax and
telephone for confidential purpose. We wish to assure you that your involvement should you decide
to assist us, will be well protected. This business is 100% risk free as we have secured our own side of
the transaction.
Thank you for your anticipated co-operation while we look forward to a mutually benefiting business
relationship with you.

Please when replying to my e-mail, kindly include your telephone, fax number and mobile telephone numbers preferably extremely private numbers where we can reach you anytime of the day.

Best regards,

Dr Tunde Momoh.

" From:Dr.A T**
Lagos-Nigeria.
Attn:President/Ceo.

STRICTLY CONFIDENTIAL BUSINESS PROPOSAL
RE: TRANSFER OF US$21.5 MILLION (TWENTY ONE MILLION, FIVE HUNDRED THOUSAND US DOLLARS ONLY).

I am a member of the Federal Government of Nigeria Contract Award and Monitoring Committee in the Nigeria National Petroleum Corporation (NNPC) Sometime ago, a contract was awarded to a foreign firm in NNPC by my Committee. This contract was over invoiced to the tune of US$21.5M. U. S. Dollars. This was done deliberately. The over- invoicing was a deal by my committee to benefit from the project. We now want to transfer this money which is in a suspense Account with NNPC into any Overseas Account which we expect you to provide for us.

SHARE: -
For providing the account where we shall remit the money into, you will be entitled to 30% of the money, 60% will be for me and my partners while 10% has been mapped out from the total sum to cover any expenses that may be incurred by us during the course of this transfer, both locally and international expenses. It may interest you to know that a similar transaction was carried out with one MR. P M, President of Crane, I**, TEL: (***). The deal was concluded and all covering documents were forwarded to MR. M to authenticate the claim. Once the funds were transferred, MR. M presented his Bank with all the legal documents and remitted the whole funds to another Bank Account and disappeared completely. My colleagues were shattered, as such opportunities do not come all the time. I would require the following: -

1. Your Company's Name,Address,Tel.&Fax. Numbers.

2. Your Bank Account Number and Address where the
money will be remitted.

The above informations would be used to make formal applications as a matter of procedure for the release of the money and onward transfer to your account.

It does not matter whether or not your company does contract projects of this nature described here. The assumption is that your company won the major contract and subcontracted it out to other companies. More often than not, big trading companies or firms of unrelated fields win major contracts and subcontracts to more specialized firms for execution of such contracts.

We have strong reliable connections and contacts at the Central Bank of Nigeria, as well as the Federal Ministry of Finance and we have no doubt that all the money will be released and transferred if we get the necessary foreign partner to assist us in this deal.

Therefore, when the business is successfully concluded we shall through our same connections withdraw all documents used from all the concerned Government Ministries for 100% security.

We are ordinary civil servants and we will not want to miss this once in a lifetime opportunity to get rich. We want this money to be transferred to the overseas Accounts for us, before the present Democratic Government starts Auditing all Federal Government owned Parastatals.

Please contact me immediately through my telefax number whether or not you are interested in this deal. If you are not, it will enable me scout for another foreign partner to carry out this deal. But where you are interested, send the required documents aforementioned herein through my above tel/fax number, as time is of the essence in this business.

I wait in anticipation of your fullest co-operation.

Yours faithfully,

Dr.A T** "

URGENT RESCUE ASSISTANCE

Attn: MP.

I kindly wish to solicit for your assistance in a very deplorable condition of mine. I am a native of
Kinsagani in Democratic republic of Congo. I was a former director to Forum Merchant Bank
in Kinsagani. As a result of outbreak of civil war in my country, my bank was attacked and looted by
rebels who were searching for fund to aid their arms and ammunition.

We had never expected the inversion of Kinsagani by the rebels because the Government forces were
fully in control. But on Sunday night we saw hell when the rebels invaded the city. Consequently I was able
to intercept my bank's under group box containing US$38M and handed it over to a security company. But
due to safety sake, I told the security firm that the content of the box is sensitive security minting and
printing parts belonging to my bank.

Your contact was made available through a diplomatic friend who flew out of the country to Saudi Arabia during the war. He assured me of your capability to assume the beneficiary of the money, being a good person. Although my mind is full of doubt while doing this, but after meditation, my spirit accepted trusting you.

Now we are still in the refugee camp pending evacuation to any neighbouring country, if the
rebels action persisted. You should forward your contact address, private telephone, e-mail and fax numbers
so that I can submit it to the security company for easy correspondence to you.

I resolved that you should own 15% of the total money from the box. Remember not to allow the security
company comprehended the actual content of the box so that total safety of this money is guaranteed.

Best Regards, as I wait your urgent reply.

Mr. S K.

Advance fee fraud (aka Nigerian or 419 fraud)

Advance Fee Fraud (aka Nigerian or 419 Fraud)

Here are some additional Examples: (click on the links below)Example 1 Example 2 Example 3

Here are some additional Examples: (click on the links below)
Example 1
Example 2
Example 3