Nigerian Advance Fee Scams
The Nigerian
Advance Fee Scam, also known internationally as “4-1-9” fraud after the section
of the Nigerian penal code which addresses fraud schemes, has been around since
the early 1980's. There is a perception that no one is prone to enter into such
an obviously suspicious relationship, and be conned by such a scheme, however,
Metropolitan Police have a special investigation squad in this respect – greed
by individuals is usually involved!
The Nigerian
419 scams use the following tactics:
An individual
or company receives a letter, fax or email from an alleged official representing
a foreign government or agency;
An offer is
made to transfer millions of dollars in “over invoiced contract” funds into your
personal bank account;
You are
encouraged to travel overseas to complete the transaction;
You are
requested to provide bland company letterhead forms, banking account information
and telephone/fax numbers;
You receive
numerous documents with official looking stamps, seals and logos testifying to
the authenticity of the proposal;
Eventually you
must provide up front or advance fees for various taxes, legal fees, transaction
fees or bribes;
Other forms of
419 schemes include:
Cash on
Delivery of goods or services, property ventures, purchases of crude oil at
reduced prices, beneficiary of a will, recipient of an award and paper currency
conversion.
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, fax or email 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
usually declares that he is a senior civil servant in one of the Nigerian
Ministries, usually the Nigerian National Petroleum Corporation. 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 of up to 30% 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 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 sceptical, desperately wants the deal to be genuine.
Victims are
almost 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 offence 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.
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.
Example
Nigerian 419 Letter
Lagos,
Nigeria.
Attention: The
President/CEO
Dear Sir,
Confidential
Business Proposal
Having
consulted with my colleagues and based on the information gathered from the
Nigerian Chambers Of Commerce and Industry, I have the privilege to request for
your assistance to transfer the sum of $47,500,000.00 (forty seven million, five
hundred thousand United States dollars) into your accounts. The above sum
resulted from an over-invoiced contract, executed commissioned and paid for
about five years (5) ago by a foreign contractor.
This action
was however intentional and since then the fund has been in a suspense account
at The Central Bank Of Nigeria Apex Bank.
We are now
ready to transfer the fund overseas and that is where you come in. It is
important to inform you that as civil servants, we are forbidden to operate a
foreign account; that is why we require your assistance. The total sum will be
shared as follows: 70% for us, 25% for you and 5% for local and international
expenses incident to the transfer.
The transfer
is risk free on both sides. I am an accountant with the Nigerian National
Petroleum Corporation (NNPC). If you find this proposal acceptable, we shall
require the following documents:
(a) Your
banker's name, telephone, account and fax numbers.
(b) Your
private telephone and fax numbers -- for confidentiality and easy communication.
(c) Your
letter-headed paper stamped and signed.
Alternatively
we will furnish you with the text of what to type into your letter-headed paper,
along with a breakdown explaining, comprehensively what we require of you. The
business will take us thirty (30) working days to accomplish.
Please reply
urgently.
Best regards
Prevention
Never reply to
any unsolicited mail, email or telephone calls that are asking you to assist a
foreign national to deposit money. Apart from the fact that you are being asked
to commit fraud, you will always be the subject of such fraud!
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