What is advance fee fraud?

Advance fee frauds play on their victims' greed. Typically, the fraudster offers the victim a chance to make a substantial fortune. The only snag is that there is a (relatively) small initial cost. Of course, that cost is real and the big payoff is an illusion.

Examples include:

• Transfer of funds from an ‘over-invoiced’ contract.
• Assistance escaping the country.
• Help accessing forgotten, former regime or deposed dictator’s funds.
• Money laundering.
• Money for chemicals to ‘clean’ marked currency.
• Fraudsters pretending that you have won a lottery.
• Gifts or bequests to charities.
• Making you ring a premium phone line in the hope of winning a prize.

Some of these frauds evolve into very elaborate stings as victims get deeper and deeper into the setup. Some victims’ true stories sound more like movie thrillers.

Risks

• Losing substantial amounts of money.
• Expensive phone calls.
• Being persuaded to give criminals your bank details which are used to empty your bank account or to support cheque fraud activity.
• Arrest, conviction and possible imprisonment if you become part of a larger fraud.
• Some victims have been drawn into these scams so far that they have travelled to Africa to collect their loot only to find themselves victims of kidnap or extortion.
• A number of victims have been murdered or committed suicide.

How to recognise advance fee frauds

• Typically, very large sums of money are tantalisingly dangled as a carrot so mistrust your greed.
• As ever, if it looks too good to be true, it probably is.
• Many of these scams involve former dictators and Swiss bank accounts so these are good indicators.
• Don’t let conmen trick you.
• Seemingly plausible (but often unverifiable) details like names and dates or elaborate technical descriptions.
• Often the initial contact includes a phone number or a request for your bank details (on the pretence that they are going to wire you some money but in reality so that they can rob your bank account).
• They may be addressed to the ‘CEO’, ‘Managing Director’ or other title rather than a named individual.
• Messages may be marked ‘urgent’ or ‘confidential’.
• Spelling mistakes are common and may be included deliberately to make you feel superior or sympathetic.
• Many of these frauds originate from West Africa and they are often known as 419 scams after a section of the Nigerian legal code. However, they are growing in popularity around the world.

How to protect yourself

• Stop and think.
• Never pay anything up front.
• Don't get involved in correspondence with fraudsters.
• If you get involved in a scam, don’t let embarrassment prevent you from going to the police.
• Guard your bank details carefully.
• Check any wildly-implausible offers online.

More information

• Read about the latest trends in advance fee fraud.