Thursday, September 29, 2005

THE NIGERIAN (419) SCAM

The “NIGERIAN (419)” Scam – named after the code in the Nigerian Criminal Code that relates to larceny by fraud, is a widespread scam that – like many con games – is hard to believe that someone would fall for. But fall for it they do, to an enormous amount of money as well. The Nigerian Scam is, according to published reports, the Third to Fifth largest industry in Nigeria. This appears to be one of the largest, and longest running, scams in the world. It is also a very dangerous one. According to the State Department, by 1996 over 15 people had been murdered after they travelled to Nigeria to participate in this "opportunity." Even more have been beaten or subject to threats and extortion. There are a number of variations on this scam, but all involve the same themes: You receive a letter, fax or email from a government official or businessman from Nigeria, telling you confidentially of a large sum of money that is available. You are asked to assist in the transfer of that money, for a share of the profits. The proposal, typewritten on official-looking stationary(lately not though), offers a 25 percent commission for assistance in transferring surplus funds of up to $38 million (obtained from "over-invoiced government contracts") from Nigeria to the United States. The solicitations request the reader provide a bank account number in order to complete the transaction. "Investors" who respond to the offer will be required to pay a never-ending assortment of legal fees, personal expenses and government bribes until the victim is drained of all assets. If you go along with the ruse, you will be asked to send money for transaction and transfer costs. Sequential "emergencies" come up requiring further payment and causing delay in the transfer of funds to you. This confidence scheme is very elaborate and sophisticated. Some of the con artists are Nigerian civil servants, and they will forward to you official and official-looking documents to demonstrate their legitimacy. These rip-offs, which contain variations in theme, are widespread. The U.S. Secret Service gets reports of about 100 victims per day, and receives 300-500 pieces of scam literature forwarded to them each day. In Nigeria, the scam is widely known as the "419" scam, named so after the provision of the Nigerian penal code that relates to fraud. A victim who gets lured into the scam at times will be asked to travel to Nigeria or a neutral country to make certain necessary arrangements for the transfer of funds. He will be asked to bring expensive items, such as high priced pens or jewelry, to facilitate the transaction.Upon arrival in Nigeria, victims are taken to hotels close to the airport. In Nigeria, strings of hotels near to the airport in Lagos are known locally as "419 hotels" because they are known to be used in this enormous rip off. Alone in a foreign country, disoriented, and without familiar resources, the victim has no way to fend off the 419 gang that will target him in the hotel. In an elaborate con, they will arrange meetings with civil servants in government buildings or in official-looking buildings. The victim will be told to transfer even more money and to sign contracts that commit to greater losses of money. If the victim goes along with the con, he will be allowed to leave the country without harm (and without money). But resistance can lead to extortion, beatings and murder. In one case a victim who had already spent thousands of dollars on various fees, was told that additional money was needed to "decoat" a suitcase full of "coated" one hundred dollar bills. The victim was told that the bills were temporarily defaced with a black film to mask the origin of the money, and a special, very expensive solution, must be purchased to "decoat" the bills. To circumvent the expense of mailing the letters, these criminal enterprises use counterfeit postage, costing the Nigerian Postal Service (NIPOST) hundreds of thousands of dollars each year in lost revenue. Under Universal Postal Union regulations, Nigeria is charged a terminal dues fee by the delivering country for this foreign-originating mail. Most 419 letters and emails originate from or are traceable back to Nigeria. However, some originate from other nations, mostly also West African nations such as Ghana, Togo, Liberia, Sierra Leone, Ivory Coast (Cote D’Ivoire) etc.

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