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Introduction:
Due to the number of Nigerian letters received around the world, it is necessary
to make the general public aware of the problem so that they do not become
victims of a possible scam. The so-called Nigerian Letter Scam is intrinsically
an advance fee fraud. The fraud is also known as the 419 scam, as the fraud is
outlined in Section 419 of the Nigerian Criminal Code. A fraudster, usually a
member of a criminal syndicate who obtains money or goods from a company or its
representative, through deception, operates the scheme.
The operation of the scheme:
The scam is initiated with the fraudster contacting a targeted company, either
by fax or mail. A business proposal is made in the letter or fax, usually by a
Nigerian based syndicate posing as senior government officials. They claim that
they are in possession of a large amount of over-budgeted money, usually
American dollars. The proposal entails the transfer of the over-budgeted money
to a bank account outside of Nigeria, which is that of the targeted company. A
plausible explanation is usually given for the transfer, although they basically
appeal to the intended victim’s greed. The person receiving the letter or fax is
generally promised a sizable percentage, between 20 and 35 percent, of the money
transferred, as a commission, for the use of the bank account.
If the intended victim is interested in the deal, they are requested to forward
a variety of paperwork which generally includes blank company letterheads which
are duly signed, blank invoices, telephone and fax numbers, and especially bank
account details. These being required to affect the transfer of the money into
the bank account.
How money is obtained from victims:
- Asking the victim to deposit money into a specified bank account to help cover
expenses for completing the deal, which may include paying bribes to other
parties in Nigeria.
- Once the original fee has been paid, “complications” may arise which
necessitate the payment of more fees.
- Organizing a meeting in Nigeria and once the victim is in Nigeria, his
passport is confiscated and he is detained until sufficient payment is received.
- Using the bank details and official letterheads to transfer money out of the
victim’s bank account and into an account and into an account under the control
of the criminals.
- Once the money is lost, an “official” may contact the victim on the pretext of
helping the victim retrieve the lost money, which, in turn, also costs money.
One might think that it is inconceivable that a person could fall victim to such
a questionable scheme. People have, however, fallen prey to the scheme to such
an extent, that it has forced a number of countries to set up specific units to
deal with Nigerian letters. There are no reliable figures, which can be used to
illustrate the extent of this scheme, as many of the victims do not report the
incident due to the embarrassment that it may cause them.
Indicators of a possible Scam:
- The letter will stress the urgency of the matter.
- The confidential nature of the transaction is stressed.
- Claims are made that the other parties are employed in, or have strong ties
with the Nigerian Government or the Central Bank of Nigeria.
- There may be a need to travel to Nigeria or one of its neighboring countries.
- Many forged official-looking documents.
- Blank letterheads, invoices and banking details are requested.
- Additional fees are continuously requested in order to further the
transaction.
- Most letters will indicate that the transaction is 100% risk-free.
Precautionary measures
When one is considering entering into a business transaction with foreigners,
the following precautionary measures can be taken which may help to reduce the
risk of becoming a victim of an advance fee fraud:
- Check the credentials of the person or business, for example with the relevant
embassy, to see whether or not the person operates a legitimate business or that
the business does exist.
- Never provide the other party with blank letterheads or invoices.
- Never pay anything in advance unless you are absolutely that goods or service
are going to be delivered.
- Ensure that your travel documents are in order.
Strategies - Anonymous Bank Accounts:
It has come to the attention of the South African Police Service that a scheme
is active in the Johannesburg area, whereby any person can open an anonymous
bank account in a European country.
There is no reference to a company name that supply this kind of a service
except for a fax number with a Johannesburg dialing code. From the information
to the SA Police Service’s disposal, this kind of conduct constitutes a
transgression in terms of the Exchange Control Regulations.
Prospective account holders are cautioned to do necessary research regarding any
scheme and to familiarize themselves with the legalities of South African Law,
before they endeavor to partake in any scheme of this nature.
Further to be very careful when and to whom they disclose their bank details,
because a risk might be involved.
Generally speaking the dilemma exists that victims who has fallen prey to
schemes are reluctant to approach the SA Police Service for help afterwards,
because they have participated in illegal activities.
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