Advance-Fee and Money Transfer Schemes

(8 of 10)

Advance-Fee and Money Transfer Schemes

In an advance-fee scheme, someone contacts you—usually by email, but sometimes by phone or mail—and convinces you to pay them a fee in return for something of a greater value, such as an investment, lottery winnings, "found money," or various products. You will sign a contract. Often, the schemer will offer a financing arrangement, and the "fee" acts as a finder’s fee. You will learn a little later that you are not eligible for the financing. Although this is a scam, you may not have legal recourse unless you can prove that the schemer never had any intention to provide the financing.

A money transfer scheme is similar, except that the scammer promises to transfer money to you via your bank account, let you keep a small "commission," and then asks you to transfer money to some other party. The incentive for you is the commission. Usually, the scammer proceeds to empty out your bank account, but in some cases might let you keep some or all of the money. Money like this might come from organized crime or other scams, and the scammer might eventually extort it from you.

In the event that a transfer does go exactly as the scammer promised, you are likely being used to cover someone’s tracks, and the law may find its way right to your bank account.

How can you spot these schemes?

Money transfer scams have some or most of the following signs:

• They usually arrive by email.
• The offer requires your account details.
• There is a promise of employment attached to the offer.
• The offer includes a commission.

Here are some ways to protect yourself from these frauds:

• Learn more about any business that offers this arrangement to you. Visit the location, check with the Better Business Bureau, or research it online.
• If you can, have the contract reviewed by an attorney.
• If the business does not have a street address, or if the finder is never available when you call, be wary.
• Be cautious with non-disclosure agreements that are added to the contracts. These are designed to prevent you from discussing the deal with other people.
• Do not agree to transfer money on behalf of someone else.

Nigerian letter fraud

You may have seen letters or emails coming from a self-proclaimed "government official" from Nigeria that promise an opportunity to share in part of a multimillion-dollar transfer of money out of Nigeria, and that the official needs your "help"— your help being your bank account number. The idea is that by letting the official withdraw a certain amount from your account, certain needed fees and taxes can be paid up front, thus making the transfer possible. In reality, your bank account is being robbed, because no such transfer exists. This is a type of advance-fee scheme.

The "official" might go to great lengths to detail the various fees and taxes needing to be paid, thus making it look legitimate. Detail is one of the weapons that schemers use to lure victims, even educated ones. The more detail they present, the more legitimate the opportunity appears.

Many schemers even portray their multimillion-dollar transfers as illegal, meaning that if you do get scammed, the Nigerian government will not be sympathetic to you, and should you travel to Nigeria to pick up your "share" of the money (as some have), you can wind up in jail.

What to do if you are contacted by one of these people?

• If you receive such a letter, send it to the Secret Service or your local FBI office.
• Don’t give your bank account to anyone who represents one of these "opportunities."
• Never believe any such offer in the first place, or reply to the email or letter.