419 Scams / Nigerian Letters

The scam is initiated with the fraudster contacting a targeted company, either by fax or mail. A business proposal is made in the letter or fax, usually by a Nigerian based syndicate posing as senior government officials. They claim that they are in possession of a large amount of over-budgeted money, usually American dollars. The proposal entails the transfer of the over-budgeted money to a bank account outside of Nigeria, which is that of the targeted company. A plausible explanation is usually given for the transfer, although they basically appeal to the intended victim's greed. The person receiving the letter or fax is generally promised a sizable percentage, between 20 and 35 percent, of the money transferred, as a commission, for the use of the bank account.

If the intended victim is interested in the deal, they are requested to forward a variety of paperwork which generally includes blank company letterheads which are duly signed, blank invoices, telephone and fax numbers, and especially bank account details. These being required to effect the transfer of the money into the bank account.

The money is obtained from the victim in a number of ways, such as:
Asking the victim to deposit money into a specified bank account to help cover expenses for completing the deal, which may include paying bribes to other parties in Nigeria.
Once the original fee has been paid, "complications" may arise which necessitate the payment of more fees.
Organising a meeting in Nigeria and once the victim is in Nigeria, his passport is confiscated and he is detained until sufficient payment is received.
Using the bank details and official letterheads to transfer money out of the victim's bank account and into an account under the control of the criminals.
Once the money is lost, an "official" may contact the victim on the pretext of helping the victim retrieve the lost money which, in turn, also costs money.

One might think that it is inconceivable that a person could fall victim to such a questionable scheme. People have, however, fallen prey to the scheme to such an extent, that it has forced a number of countries to set up specific units to deal with Nigerian letters. There are no reliable figures which can be used to illustrate the extent of this scheme as many of the victims do not report the incident due to the embarrassment that it may cause them.

Indicators of a possible scam

The following may indicate that one may be a potential victim of a Nigerian letter scam:
The letter will stress the urgency of the matter.
The confidential nature of the transaction is stressed.
Claims are made that the other parties are employed in, or have strong ties with the Nigerian Government or the Central Bank of Nigeria.
There may be a need to travel to Nigeria or one of its neighbouring countries.
Many forged official-looking documents.
Blank letterheads, invoices and banking details are requested.
Additional fees are continuously requested in order to further the transaction.

Precautionary measures

When one is considering entering into a business transaction with foreigners, the following precautionary measures can be taken which may help to reduce the risk of becoming a victim of an advance fee fraud:
Check the credentials of the person or business, for example with the relevant embassy, to see whether or not the person operates a legitimate business or that the business does exist.
Never provide the other party with blank letterheads or invoices.
Never pay anything in advance unless you are absolutely sure that goods or services are going to be delivered.
Ensure that your travel documents are in order.

Contact

If you have been solicited by a Nigerian letter or have been a victim of such an advance fee fraud, please contact Captain SC Schambriel of Commercial Crime, Head Office, at telephone number (012) 339 1203, or forward the information to him at facsimile number (012) 339 1202.

Strategies

Anonymous Bank Accounts

It has come to the attention of the South African Police Service that a scheme is active in the Johannesburg area, whereby any person can open an anonymous bank account in a European country.
There is no reference to a company name that supply this kind of a service except for a fax number with a Johannesburg dialling code. From the information to the SA Police Service's disposal, this kind of conduct constitutes a transgression in terms of the Exchange Control Regulations.
Prospective account holders are cautioned to do the necessary research regarding any scheme and to familiarise themselves with the legalities of South African Law, before they endeavour to partake in any scheme of this nature.
Further to be very careful when and to whom they disclose their bank details, because a risk might be involved.
Generally speaking the dilemma exists that victims who has fallen prey to schemes are reluctant to approach the SA Police Service for help afterwards, because they have participated in illegal activities.

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