What Is the Nigerian Letter Scam?

What Is the Nigerian Letter Scam?

Let me tell you about the Nigerian letter scam, which is also called advance fee fraud or '419 fraud.' It's a scheme where someone contacts you, asking for help to illegally transfer money. They might send this via mail, fax, or most commonly, email. The sender claims to be a government or military official, bank officer, or business executive who needs a foreign account to move money out of Nigeria.

In return, they offer you a commission, sometimes up to millions of dollars, based on how gullible they think you are. Then, they ask for money to cover costs like taxes, legal fees, or bribes. If you send the money, they either vanish or come back with more excuses to get additional payments.

Key Takeaways

Understand that the Nigerian letter scam is where a sender offers you a commission via email to assist in transferring a large sum of money. These scammers rely on the allure of that commission to get you to send thousands to a stranger. The excuses for the transfer vary, from frozen government accounts to unclaimed inheritances. It's known as advance fee fraud or 419 fraud, originating from its popularity in Nigeria in the 1990s.

How a Nigerian Letter Scam Works

This scam gets its name from its heavy occurrence in Nigeria, especially in the 1990s, and it's illegal under Section 419 of the Nigerian Criminal Code. But it's not just from Nigeria; it's run by groups worldwide. Origins are debated—some say it started in Nigeria in the 1970s, others trace it back centuries to scams like the Spanish Prisoner.

Special Considerations

Originally, these scams used phone, fax, or mail, but email made them explode. Watch for red flags like mentions of U.S. currency in foreign accounts, promises of big rewards for minimal effort, plus typos, bad grammar, and odd phrasing.

What the Scammers Are Looking For

Scammers hope their commission offers will tempt you to risk sending money to strangers. They might claim the transfer is urgent due to government freezes, war, corruption, or unrest, and they need your bank details for safekeeping. Remember, if it sounds too good to be true, it is. These scams persist because even a few successes out of thousands of tries make it profitable.

How to Avoid the Nigerian Letter or 419 Fraud

The FBI gives straightforward advice to dodge this fraud. If you get a letter or email from Nigeria or elsewhere asking for personal or banking info, don't reply at all. Instead, forward it to the U.S. Secret Service, your local FBI office, or the U.S. Postal Inspection Service. You can also file a complaint with the Federal Trade Commission's Complaint Assistant.

Continued Awareness

Many recognize these scams, but criminals only need a few victims to succeed. If you have vulnerable people in your life, like elderly parents, explain how these work and how to avoid them.

What Is the Nigerian Romance Scam?

A romance scam, a form of catfishing, involves a criminal creating a fake online identity to build trust and affection with you. They manipulate you under the pretense of romance to steal money. They might propose marriage or plan meetings that never happen, then ask for funds. Studies show Nigeria ranks second globally for these scams, after the Philippines.

What Is an Advance Fee Scam?

An advance fee scam is when you pay a fraudster upfront for a promised bigger reward, like a gift, contract, loan, or investment, but get nothing in return. The Nigerian letter scam fits this because you pay fees for a share of a large sum, providing bank details along the way.

Do Nigerian Letter Scams Originate in Nigeria?

Not always. Traced scammers show 71% live in the United States, with Nigeria at 8%.

Important Reporting Information

If you're a victim, file a complaint with the U.S. Secret Service's Criminal Investigative Division. Label it 'No Financial Loss- For Your Database' or 'Loss' as appropriate, and mail to 950 H Street NW, Washington, D.C. 20223. Report significant losses to your local Secret Service office too—find it on their website or in your phone book. Forward suspicious emails to [email protected] for the FTC. Check the FBI's website for more on Nigerian fraud scams.