Lorraine is a widow who enjoys chatting with Tom, a bank manager who hails from the UK.
Even though they have never met, a relationship swiftly blossoms. Tom informs Lorraine of a surprise parcel he’s sent to her address, but local customs officers held it until customs taxes are paid.
Tom tells Lorraine she needs to pay $5,000 via wire transfer so the parcel can be cleared and released for delivery.
Clearly smitten and pleased with the surprise, Lorraine transfers all her remaining savings as instructed, and patiently waits until she receives the parcel.
Tom’s online accounts seem to have vanished into thin air. Confused, Lorraine phones the customs department and learns that no such parcel is addressed to her.
The Nigeria Scam
Lorraine, in the example, represents the thousands of victims who have fallen prey to the elusive Nigeria Scam.
This is a type of advance-fee scam, a type of confidence trick and another form of fraud.
The scam involves earning the victim’s trust, promising a share of money, property or anything with high value, in exchange for an upfront payment.
Once the victim pays the amount required, the fraudster either fabricates stories about needing more money or, like Tom in the example, disappears like he never existed in the first place.
Before, fraudsters utilized fax and snail mail for corresponding with their victims. Since e-mail and social media offer a more convenient means to communicate, fraudsters now use these platforms to trick unsuspecting victims.
Not only in Nigeria
In 2006, over 61% of fraudsters were in the US, 16% were in the UK, and 6% were from Nigeria. The scam has also been documented in South Africa, Ivory Coast, Jamaica, Spain, and the Netherlands.
But why is Nigeria singled out?
The scam appears to have originated in Nigeria. It is also referred to as Nigerian 419, because the early versions of the crime came from Nigeria. The 419 is taken from the section of the Nigerian Criminal Code, but the scam is now rampant across the globe.
The name also seems to have been inspired by an absurd story of a Nigerian prince promising lavish riches from West Africa—a story that only the most gullible will believe.
Unfortunately, it is still a rather lucrative business or side income for scammers, who are usually young students or ordinary employees with low-paying jobs. They discover that they can make money out of fooling people, often earning as much as $60,000 in a year.
Who falls into the trap?
Much like the widowed Lorraine in the example, fraudsters prey on human vulnerabilities.
The most unsuspecting demographic comprise of widowers aged 45-75 who are lonely, bored but have plenty of money. Fraudsters use social engineering to cultivate a trusting relationship—feeding on the victims’ weaknesses until they convince the victims to send money or divulge sensitive information.
A type of confidence trick, one element of the Nigeria scam is earning the trust and confidence of the victim to successfully execute the crime.
How it works
Scammers can contact you through snail mail, email, text message or social media channels. They do this to practically any address or username they can send to, in the hopes that one victim will reply.
Then they exploit your human vulnerabilities, like what Lorraine experienced in the example. They tell you elaborate stories, tell you what you like to hear, then gain your trust.
They will absolutely refuse personal contact, giving excuses such as being busy with work or having a disability that disallows them to travel. They might also refuse video calls but will give you very convincing photos of themselves that do not, of course, belong to them.
Then they inform you that they have sent you something very important or luxurious, but a certain amount must be paid upfront for you to receive it. Or they can simply ask for your bank details and PIN so that they can transfer funds to you, only to gain access to your own funds and steal your hard-earned money.
Later on, you will realize that you have been scammed. As if it’s not the worst—the chances of getting your money back are next to impossible.
Know the red flags
Some of the warning signs that you’re dealing with a scammer include:
● Receiving an unexpected or unrecognized correspondence, like a cry for help or a random message from someone claiming to be a long-lost friend
● Refusing face-to-face contact with you, insisting that you communicate through email, traditional mail, chat, or phone call instead
● Hearing a very sad yet incredulous story about funds being frozen or trapped
● Promising you a very large amount of money, property, or inheritance in exchange for helping them once you have transferred your own money
● Name-dropping lawyers, banks, government agencies and organizations that are allegedly assisting them
The bottom line? Trust your instincts. Anything that seems unusual or too good to be true is telling of a fraudster in the works.
Don’t fall into the trap
Since these fraudsters prey on your weaknesses, toy with your feelings, and exploit your emotions, the key is to keep your guard up.
● Never provide financial information such as credit card details, billing address, or tax information to anyone you don’t trust.
● Never send money to anyone you don’t trust.
● Never give copies of documents containing sensitive information, such as your passport, employment certificates, tax records, land titles, and birth certificate.
● Refuse upfront payments via wire transfer, money order or cryptocurrency such as Bitcoin.
● Avoid transferring money on behalf of someone else you don’t trust. Money laundering is a serious crime.
● Verify the identity of the people you’re corresponding with by directly contacting the organization they claim to be working for. Search on your own, and don’t rely on the details they provided.
● Do a thorough internet research by keying in the exact wording of their correspondence. Many scams are detected this way.
● Don’t hesitate to ask for advice from a trusted person or seek help from a law enforcement agency.
Have you been scammed?
If you suspect you have been scammed, see your lawyer immediately to seek legal action.
Save all your correspondence with the scammer including the photos they sent to you, and go to the nearest police office to document the incident.
Call your bank and have all your credit cards canceled or cut off. Check your funds if no fraudulent transactions have been made.
Inform the issuing authority of your passport or driver’s license, if you also provided copies of these to the suspected scammer.
Change all your passwords and strengthen the security of all your online accounts. Edit your public profiles and make sure no sensitive data is publicly shown, like phone number, address, and date of birth. Limit the photos you share online.
There is no guarantee that the transferred money can be recovered, but you can also consult a security specialist or an intelligence expert to trace the scammer.
