advisory from the United States Secret Service:
PUBLIC AWARENESS ADVISORY REGARDING "4-1-9" OR "ADVANCE FEE FRAUD"
SCHEMES
4-1-9
Schemes frequently use the following tactics:
- An individual or company
receives a letter or fax from an alleged "official" representing
a foreign government or agency;
- An offer is made to transfer
millions of dollars in "over invoiced contract" funds into your
personal bank account;
- You are encouraged to travel
overseas to complete the transaction;
- You are requested to provide
blank company letterhead forms, banking account information,
telephone/fax numbers;
- You receive numerous documents
with official looking stamps, seals and logo testifying to the
authenticity of the proposal;
- Eventually you must provide
up-front or advance fees for various taxes, attorney fees,
transaction fees or bribes;
- Other forms of 4-1-9 schemes
include: c.o.d. of goods or services, real estate ventures,
purchases of crude oil at reduced prices, beneficiary of a will,
recipient of an award and paper currency conversion.
If you have already lost funds in
pursuit of the above described scheme, please contact your local
Secret Service
field
office.
Nigerian
Advance Fee Fraud Overview
The perpetrators of Advance Fee
Fraud (AFF), known internationally as "4-1-9" fraud after the
section of the Nigerian penal code which addresses fraud schemes,
are often very creative and innovative.
Unfortunately, there is a
perception that no one is prone to enter into such an obviously
suspicious relationship. However, a large number of victims are
enticed into believing they have been singled out from the masses
to share in multi-million dollar windfall profits for doing
absolutely nothing. It is also a misconception that the victim's
bank account is requested so the culprit can plunder it -- this is
not the primary reason for the account request -- merely a signal
they have hooked another victim.
- In almost every case there is a
sense of urgency;
- The victim is enticed to travel
to Nigeria or a border country;
- There are many forged official
looking documents;
- Most of the correspondence is
handled by fax or through the mail;
- Blank letterheads and invoices
are requested from the victim along with the banking particulars;
- Any number of Nigerian fees are
requested for processing the transaction with each fee purported
to be the last required;
- The confidential nature of the
transaction is emphasized;
- There are usually claims of
strong ties to Nigerian officials;
- A Nigerian residing in the
U.S., London or other foreign venue may claim to be a clearing
house bank for the Central Bank of Nigeria;
- Offices in legitimate
government buildings appear to have been used by impostors posing
as the real occupants or officials.
The most common forms of these
fraudulent business proposals fall into seven main categories:
- Disbursement of money from
wills
- Contract fraud (C.O.D. of goods
or services)
- Purchase of real estate
- Conversion of hard currency
- Transfer of funds from over
invoiced contracts
- Sale of crude oil at below
market prices
The most prevalent and successful
cases of Advance Fee Fraud is the fund transfer scam. In this
scheme, a company or individual will typically receive an
unsolicited letter by mail from a Nigerian claiming to be a senior
civil servant. In the letter, the Nigerian will inform the
recipient that he is seeking a reputable foreign company or
individual into whose account he can deposit funds ranging from
$10-$60 million that the Nigerian government overpaid on some
procurement contract.
The criminals obtain the names of
potential victims from a variety of sources including trade
journals, professional directories, newspapers, and commercial
libraries. They do not target a single company, but rather send out
mailings en masse. The sender declares that he is a senior civil
servant in one of the Nigerian Ministries, usually the Nigerian
National Petroleum Corporation (NNPC). The letters refer to
investigations of previous contracts awarded by prior regimes
alleging that many contracts were over invoiced. Rather than return
the money to the government, they desire to transfer the money to a
foreign account. The sums to be transferred average between
$10,000,000 to $60,000,000 and the recipient is usually offered a
commission up to 30 percent for assisting in the transfer.
Initially, the intended victim is
instructed to provide company letterheads and pro forma invoicing
that will be used to show completion of the contract. One of the
reasons is to use the victim's letterhead to forge letters of
recommendation to other victim companies and to seek out a travel
visa from the American Embassy in Lagos. The victim is told that
the completed contracts will be submitted for approval to the
Central Bank of Nigeria. Upon approval, the funds will be remitted
to an account supplied by the intended victim.
The goal of the criminal is to
delude the target into thinking that he is being drawn into a very
lucrative, albeit questionable, arrangement. The intended victim
must be reassured and confident of the potential success of the
deal. He will become the primary supporter of the scheme and
willingly contribute a large amount of money when the deal is
threatened. The term "when" is used because the con-within-the-con
is the scheme will be threatened in order to persuade the victim to
provide a large sum of money to save the venture.
The letter, while appearing
transparent and even ridiculous to most, unfortunately is growing
in its effectiveness. It sets the stage and is the opening round of
a two-layered scheme or scheme within a scheme. The fraudster will
eventually reach someone who, while skeptical, desperately wants
the deal to be genuine.
Victims are almost always
requested to travel to Nigeria or a border country to complete a
transaction. Individuals are often told that a visa will not be
necessary to enter the country. The Nigerian con artists may then
bribe airport officials to pass the victims through Immigration and
Customs. Because it is a serious offense in Nigeria to enter
without a valid visa, the victim's illegal entry may be used by the
fraudsters as leverage to coerce the victims into releasing funds.
Violence and threats of physical harm may be employed to further
pressure victims. In June of 1995, an American was murdered in
Lagos, Nigeria, while pursuing a 4-1-9 scam, and numerous other
foreign nationals have been reported as missing.
Victims are often convinced of the
authenticity of Advance Fee Fraud schemes by the forged or false
documents bearing apparently official Nigerian government
letterhead, seals, as well as false letters of credit, payment
schedules and bank drafts. The fraudster may establish the
credibility of his contacts, and thereby his influence, by
arranging a meeting between the victim and "government officials"
in real or fake government offices.
In the next stage some alleged
problem concerning the "inside man" will suddenly arise. An
official will demand an up-front bribe or an unforeseen tax or fee
to the Nigerian government will have to be paid before the money
can be transferred. These can include licensing fees, registration
fees, and various forms of taxes and attorney fees. Normally each
fee paid is described as the very last fee required. Invariably,
oversights and errors in the deal are discovered by the Nigerians,
necessitating additional payments and allowing the scheme to be
stretched out over many months.
Several reasons have been
submitted why Nigerian Advance Fee Fraud has undergone a dramatic
increase in recent years. The explanations are as diverse as the
types of schemes. The Nigerian Government blames the growing
problem on mass unemployment, extended family systems, a get rich
quick syndrome, and, especially, the greed of foreigners.
Indications are that Advance Fee
Fraud grosses hundreds of millions of dollars annually and the
losses are continuing to escalate. In all likelihood, there are
victims who do not report their losses to authorities due to either
fear or embarrassment.
If you feel you have been a victim
of any of these schemes contact your local
field
office for assistance. |
