Those concerned about the myriad of online scams that seem to crop up on a regular basis would do well to note the existence of the common postal fraud known as Nigerian Postal Fraud or 419 Fraud. Named for section 419 of the Nigerian penal code and also known as Fee Fraud. (AFF), 419 combines phishing fraud with an advance fee scam and can be received by mail, fax, or email. The letter usually offers the recipient a percentage of a large sum of money in exchange for the recipient’s permission to “assist” in transferring the sum through their own bank account and lend money to the sender’s “cause”. This may seem like nothing more than a scam to most (and it is), but it has tricked countless people into handing over money and personal information.
According to the US Department of State, the letter from Nigeria may contain the following or similar text:
“After consultation with my colleagues, and based on information gathered from the Nigerian Chamber of Commerce, I am pleased to propose a confidential business transaction for our mutual benefit. My colleagues and I are in possession of instruments to transfer the sum of $ 35,500,000.00 to an account of a foreign company in our favor. This amount arose as a result of an over-invoiced, executed, commissioned and paid contract approximately two years ago by a foreign contractor. Therefore, we request your help to transfer this money to your account Since it can only be sent to an account abroad, and as public servants, we are prohibited from operating accounts abroad, the total amount will be distributed as follows:
30% for the account holder (you)
60% for us
10% to settle any incidental expenses
“We will start the transfer of funds immediately, as soon as you send the following documents/information via the fax number above.
1. Four copies of your company’s letterhead and invoices signed and stamped
2. The name, address and fax numbers of your banker
3. The account number and the name of the beneficiaries.
“Keep in mind that this is an absolutely private and personal, unofficial deal, and must be treated with the fullest measure of secrecy and confidentiality.”
After all the talk about how risky it is to share personal information with anyone on the internet, you’d think no one would fall for a letter asking you to submit your bank and company information, but this scam is estimated to be loss making. of millions of dollars each year. Furthermore, according to the Federal Bureau of Investigation (FBI), it has happened that once the victim stops sending money, the victim’s personal and banking information is used to drain their bank accounts and credit cards. Some victims have even been lured to Nigeria where they have been jailed, and some people have even been killed as a result of their involvement in this scam.
According to the Department of State, little progress has been made in prosecuting the perpetrators of the 419 fraud. Some reasons for this include:
1. Only 5 to 10 percent of AFF victims report the scam, possibly because victims may not want to admit they were scammed or involved in the situation.
2. Victims may believe that they can recover their losses if they continue to represent the fraud.
3. Victims may believe that if they report the fraud, they will be prosecuted under US law as abettors. At least one US court has upheld civil forfeiture of proceeds attributed to AFF.
4. Sections 5 and 6 of the Nigerian Presidential Decree of April 1995 criminalize the receipt and/or possession of a fraudulent letter by a victim. This may discourage victims from returning to Nigeria to assist in the prosecution of these criminals.
To avoid getting caught up in what has become a notorious international scam, the FBI recommends taking specific steps:
1. If you receive a letter from Nigeria asking you to submit personal or banking information, please do not respond in any way. Send the letter to the United States Secret Service or the FBI.
2. If you know someone who matches one of these schemes, encourage them to contact the FBI or US Secret Service as soon as possible.
3. Be skeptical of people who present themselves as Nigerian or foreign government officials who ask for your help in depositing large sums of money into offshore bank accounts.
4. Do not believe in the promise of large sums of money for your cooperation.
5. Please guard your account information carefully.
Unfortunately for the victim, once they send money or products to Nigeria, it is nearly impossible to reverse the damage done or catch the perpetrators. If you receive anything, via fax, email, or US mail, that resembles the Nigerian letter scam, please do not reply to the sender and contact the appropriate law enforcement agencies as soon as possible.
For more information and a detailed description of how this scam works, visit http://www.state.gov/www/regions/africa/naffpub.pdf.