Advance-fee Scams
Advance-fee scams are deceptive schemes where individuals are persuaded to pay upfront fees in hopes of receiving something of significant value, such as money, goods, or services. These scams have a long history, evolving from early methods like the "Spanish Prisoner Swindle" in the 19th century to more contemporary schemes facilitated by the Internet and email. Scammers often promise large returns on investments or lucrative job opportunities, capitalizing on the trust and emotions of their victims by crafting compelling narratives that evoke urgency or sympathy.
These scams can manifest in various forms, including solicitations for investment in non-existent ventures, offers of loans without credit checks, or claims of inherited wealth that require payment of fees to claim. Additionally, scammers may exploit victims' personal information, leading to further financial loss through identity theft. Law enforcement advises individuals to remain skeptical of unsolicited offers, particularly those that seem too good to be true, and to conduct thorough research before sharing any financial information. Overall, awareness and caution are crucial in avoiding these prevalent and evolving scams.
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Advance-fee Scams
Advance-fee scams are any methods thieves use to convince people to pay money in anticipation of receiving something of great value. Scammers may offer much larger sums of money, merchandise, debt payoff, jobs, and the like in exchange for some form of advance payment and/or service. Schemes like these have existed for centuries, but technologies such as wire transfers, the Internet, and email have made it easier for perpetrators of advance-fee scams to alter their techniques and harder for law enforcement to catch them. Thus, scammers are able to take advantage of more people in more ways.
Background
Attempts to cheat people out of funds have likely existed for as long as money has existed. When mail delivery made it possible to contact faraway people, scammers quickly moved from conducting scams in person to using safer, long-distance methods. One of the first advance-fee scams to receive widespread attention was an early nineteenth–century scam known as the "Spanish Prisoner Swindle." Each victim in England received a letter that appeared to be from an imprisoned Spanish military officer who had hidden a large sum of money near the victim's home. The victim was promised a sizeable share of the money in exchange for sending funds for the officer's young daughter and her attendant to travel to England to retrieve the money. The victim would send the funds, but the nonexistent daughter never arrived.
Similar scams developed in the decades following, often using current events as a backdrop for the scam to help build credibility. Among the most widespread and well-known of these were the Nigerian scams. In 1985, Ibrahim Babangida became the new ruler of Nigeria. His policies combined with falling oil prices put the country's economy in a tailspin, and some Nigerians turned to illegal methods to earn money. One such effort involved sending letters to British investors offering a huge share of the cargo on a stranded oil tanker if the investors would front money to retrieve the tanker. Of course, no such tanker existed, and those who tried to take advantage of the "investment" lost their money.
A number of other scams arose in Nigeria at the same time, all offering variations of the same theme: the sender had access to something of great value and needed the letter recipient's help to retrieve it. The item of value could be an inheritance, lottery winnings, overpaid invoices, or large amounts of merchandise. The potential victim would be told that in exchange for sending money for fees, travel expenses, and so on, the sender would share a large portion of the value of the item. Sometimes the victim would be asked to reserve and pay for plane tickets or hotel rooms or to send documents such as blank invoices or signed copies of letterhead from his or her company. These items would be used to perpetrate additional frauds. In certain cases, the person would be told to come to Nigeria or a neighboring country to help retrieve the item of value. Some of these people were kidnapped for ransom, and at least one is believed to have been killed.
It is difficult to know how many of these crimes occur because victims are often too afraid or too embarrassed to report the fraud. Under Nigerian law, it is a crime (even for the recipient) to possess one of these letters, which further complicates identification and prosecution. These crimes and others like them are often known as 419 scams after the section of the Nigerian penal code that addresses them.
Overview
Since Internet usage became widespread, scams similar to 419 scams have become even more prevalent. They are not the only way scammers attempt to victimize unsuspecting people, however. Advance-fee scams include any scam that asks for up-front fees to provide goods, services, or access to special "deals" that are out of proportion to the amount being paid. Deals on merchandise, vacations, or other opportunities offered for low prices that seem "too good to be true" are often advance-fee scams. These scams may offer a share of a large sum of money in exchange for helping to move it out of a foreign country or in exchange for helping the sender of the letter or email leave his or her country.
Thieves use a number of techniques to entice their intended victims to help. They often play on their victims' sympathies with stories of the illnesses or persecutions they have suffered. Thieves may make the situation seem very urgent and time sensitive to encourage their intended victims to respond quickly and without thinking. Senders will often encourage secrecy and discretion, making recipients feel specially chosen and at the same time discouraging victims from investigating an offer's validity or sharing information about it with others.
Perpetrators may take advantage of victims in several ways simultaneously. For instance, they may ask for money up front in exchange for a service, such as guaranteeing the person a very desirable job with a large company or clearing a bad credit rating. In addition to stealing the advance payment, the thief may convince the victim to reveal personal information, such as a Social Security number, date of birth, or bank account number. Such information can then be used to drain the person's bank accounts or open new fraudulent credit cards in the victim's name.
Other examples of advance-fee schemes include offering guaranteed loans or credit cards without credit checks in exchange for an advance fee, informing the recipient that he or she has inherited money or won an international lottery but must pay fees to claim the funds, or proposing business deals in which the scammer asks the potential victim to pay a third party as part of the deal. In this last fraud, the victim appears to receive money that is later found to have been paid with a fraudulent credit card and is retracted, leaving the victim without payment and with bank fees to pay. Some thieves even use dating websites to find victims, who are then asked for money to help with financial difficulties or medical bills.
Authorities urge skepticism when dealing with any unsolicited offers. Scam artists often use names similar to legitimate businesses or government agencies to add credibility to their offers. Law enforcement agencies say ignoring offers that seem "too good to be true" and thoroughly investigating others before sharing money or financial information are the best protection.
Bibliography
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