Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Technical Analyst: Gold Price Weakness Should Be Short Term - 24th May 19
Silver Price Looking Weaker than Gold - 24th May 19
Nigel Farage's Brexit Party EU Elections Seats Results Forecast - 24th May 19
Powerful Signal from Gold GDX - 24th May 19
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Nigerian email 419 scams

ConsumerWatch / Scams Dec 06, 2006 - 10:24 PM GMT

By: Nadeem_Walayat

ConsumerWatch

The Nigerian scam is alive and kicking, and now targetting the emerging middle classes of India as well as continuing to hit the developed western world. In total the scam defrauds some $500 millions per year and is Nigerias fifth biggest industry.

Nigerian email 419 scams

The way the scam works is by an email sent out originating from Nigeria or another African country to a large mailing list. The emails promise a % share of millions of dollars, for helping officials of a government (or bank, or quasi-government agency or sometimes just members of a particularly rich family) out of an legal problem.


Once the recipient replies to the scam email, then the con works by suckering in the victim in by promises of million dollars. Fake documentation is supplied to the victim, and lengthy phone conversations (almost always on non traceable mobile phones) and other correspondence may take place, though always a sense of urgency is at work, that if the victim does not act, then the money will be lost to them.

How the money is scammed from the victim

There are a variety or processing fees or bribes to government officials which the victim must pay to get the money released. After the initial payment either by wire transfer or handing over to an intermediary, the victim usually gets another call from the scammers informing them that something has gone wrong and a further amount is needed to get the money released. This could go on for weeks where the victim is slowly bleed dry or figures out that they ar being scammed.

Some victims have even agreed to travel to nigeria to get the money released, which as you can imagine is extremely dangerous, i.e. the risks of being kidnapped and murdered are high. The US Secret Service reports that in June of 1995 an American who was pursuing one of these scams was found murdered in Lagos and that numerous other persons have been reported missing.

An example of an recent Nigerian email scam - Airplane crash scam (Dec 06)

Dear,

I am the head of Accounts and Audit Department of Bank of Africa,
Ouagadougou . I decided to contact you after a careful thought that you may be capable of handling this business transaction which i explained below;

In my department we discovered an abandoned sum of $10.5m US dollars (Ten million, five hundred thousand US dollars). In an account that belongs to one of our foreign customer who died along with his entire family in 2000  in a plane crash.

Since we got information about his death, we have been expecting his next of kin to come over and claim his money because we cannot release it unless somebody applies for it as next of kin or relation to the deceased as indicated in our banking guidelines but unfortunately we learnt that his supposed next of kin(his son and wife) died alongside with him at the plane crash leaving nobody behind for the claim .

It is therefore upon this discovery that I and other officials in my department now decided to make this business proposal to you and release the money to you as the next of kin (We want to present you as his busines asociate )to the deceased for safety and subsequent disbursement since nobody is coming for it and we don't want this money to go into the Bank treasury as unclaimed Bill.

The Banking law and guideline here stipulates that if such money remained Unclaimed after seven years, the money will be transferred into the Bank treasury as unclaimed fund. The request of foreigner as next of kin in this business is occasioned by the fact that the customer was a foreigner and a Burkinabe cannot stand as next of kin to a foreigner .

We agree that 30% of this money will be for you as foreign partner, in respect to the provision of a foreign account, 10 % will be set aside for expenses incurred during the business and 60% would be for me and my colleagues. There after I and my colleagues will visit your country for disbursement according to the percentages indicated.

Therefore to enable the immediate transfer of this fund to your account as arranged,you must apply first to the bank as next of kin of the deceased customer. Upon receipt of your reply, I will send to you by fax or email the text of the application. I will not fail to bring to your notice that this transaction is hitch free and that you should not entertain any atom of fear as all required arrangements have been made for the transfer.

I expect that you contact me immediately as soon as you receive this letter.

Hoping to hear from you immediately.

Yours faithfully,
DR .SANOU BELLO
Accounts & Audit Department ,
Bank of Africa

Nb.also give me your telephone and fax numbers for easy comunication with you.

 

Things that stand out

  • The obvious promise of millions of dollars from an rich person or institution for your help
  • That the email is from a free email account, that has no relation to the company they are attempting to represent.
  • Mobile phone numbers may be mentioned.

Origins of the Scam

The scam originated in letter and fax form in the early 1990's from Nigeria and became known as the Nigerian 419 scam , after section 4-1-9 of the Nigerian Penal Code which relates to fraudulent schemes or "Advance Fee Fraud" scheme. It is estimated that as many as 400,000 people in Nigeria are employed in the scam industry. The scam despite still being prevalent in Nigeria has spread to many other african countries.

Variations of the Nigerian scam include :

  • Relative killed in World Trade Center left a fortune
  • Forgotten accounts, wills and inheritances, death-bed claims of wealth.
  • Transfer of funds from "over-invoiced" or "over-estimated" contracts relating to resources or infrastructure.
  • Assistance in escaping the country with accumulated wealth (bribe money)
  • Efforts to defraud government on forgotten accounts
  • Contract fraud (goods or services)
  • Conversion of hard currency i.e. money laundering
  • Lottery winnings
  • Sale of crude oil or other commodities at below market prices
  • Transfer of accounts of defunct companies
  • Deposed Leaders or more probably their families ( widows, sons ) and associates ( aides, lawyers)
  • Over-invoiced contracts and government employees (Central Bank of Nigeria )
  • Assistance getting stolen assets ( cash, diamonds ) out of the country
  • Gifts or bequests to charitable or religious organizations
  • Relative killed in World Trade Center left a fortune
  • Bogus job offers with rebate of wage overpayment using third party cheque's

How to fight the Nigerian 419 scam and its variants.

  • Don't respond to the Scam email / letter !
  • Notify your countries police authority
  • Send an complaint to the NIgerian Embassy with a copy of the scam email. The Nigerian government tends to turn a blind eye to the scam as it is a big source of revenue for Nigeria estimated at more than $500 millions per year !
  • Contact the scammers email provider, with a full copy of the scam email (including headers), usually use abuse+the free email domain name i.e. abuse@hotmail.com
  • If you are thinking of responding to the scam to bait the scammers for fun, then remember that they are operated by criminal gangs and could resort to violence.

by Nadeem Walayat

Disclaimer - This Analysis / Forecast is provided for general information purposes only and not a solicitation or recommendation to enter into any market position, and you are reminded to seek independent professional advice before entering into any investments or trading positions.

Attention editors and publishers ! This article can be republished. Republished articles MUST include attribution to the author and the following short paragraph:

The Market Oracle is a FREE Financial Markets Forecasting & Analysis online publication. We aim to cut through the noise cluttering traditional sources of market analysis and get to the key points of where the markets are at and where they are expected to move to next ! To view articles, visit http://www.marketoracle.co.uk


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules