The fraudster has many faces. Yet another manifestation of the cyberfraud is the world famous Nigerian scam. Also known as the "Advance Fee Fraud" or "4-1-9" scheme (named after the relevant section of the Nigerian Criminal Code that it violates) , the Nigerian scam has successfully separated many members of the "something for nothing" crowd from their wealth. Typically, rich countries like Europe, North America and Australia are targeted.
Since 1989, these confidence tricks have been estimated to net a total of many billions year after year. The concept may have originated in Nigeria (during Sani Abacha’s time) but it has certainly made an impact in far-flung countries. The advent of the Internet has, as with other crimes, given it a massive boost in terms of the number of people it can reach out to to as well as the ease with which the perpetrator avoids the law. Originally, the schemers contacted mainly CEOs of companies or church officials but this is not always the case as there have been cases of private citizens being targeted as well.
Messages in letter or, more recently, email format are sent to address taken from compiled mailing lists. They are usually postmarked from Nigeria but they could be from Sierra Leone, Spain, or almost any other foreign nation for that matter. Typically, the letter informs the recipient about a major corporation, government agency or high-profile individuals (royalty or officials) who are in some sort of embarrassing or legal situation. The reward for lending a hand in getting them out of this trouble is a massive fortune, usually lying in the millions. The victim, usually naïve and desperate for quick cash, is taken in. The message will indirectly imply that the recipient has to pay a relatively small sum of money (usually five to ten thousand dollars) but if the recipient is naïve enough, he or she will feel that this price is nothing compared to the windfall in store. In fact, it also helps to somewhat allay suspicions that might have been generated if this fortune was being offered for nothing at all. Here is one example of a Nigerian scam which was in widespread circulation some years ago.
TO: CEO
Everytown , USA
Dear Sir:
I have been requested by the Nigerian National Petroleum Company to contact you for assistance in resolving a matter. The Nigerian National Petroleum Company has recently concluded a large number of contracts for oil exploration in the sub-Sahara region. The contracts have immediately produced moneys equaling US$40,000,000. The Nigerian National Petroleum Company is desirous of oil exploration in other parts of the world, however, because of certain regulations of the Nigerian Government, it is unable to move these funds to another region.
You assistance is requested as a non-Nigerian citizen to assist the Nigerian National Petroleum Company, and also the Central Bank of Nigeria, in moving these funds out of Nigeria. If the funds can be transferred to your name, in your United States account, then you can forward the funds as directed by the Nigerian National Petroleum Company. In exchange for your accommodating services, the Nigerian National Petroleum Company would agree to allow you to retain 10%, or US$4 million of this amount.
However, to be a legitimate transferee of these moneys according to Nigerian law, you must presently be a depositor of at least US$100,000 in a Nigerian bank which is regulated by the Central Bank of Nigeria.
If it will be possible for you to assist us, we would be most grateful. We suggest that you meet with us in person in Lagos, and that during your visit I introduce you to the representatives of the Nigerian National Petroleum Company, as well as with certain officials of the Central Bank of Nigeria.
Please call me at your earliest convenience at 18-467-4975. Time is of the essence in this matter; very quickly the Nigerian Government will realize that the Central Bank is maintaining this amount on deposit, and attempt to levy certain depository taxes on it.
Yours truly,
Prince Alyusi Islassis
Out of sheer compassion or desire to get rich fast, many are likely to fall for this type of scam. But this is merely an example. There are innumerable variations to this plot. Religious organizations often receive messages from foreigners claiming to be fabulously rich who desire only to repent for the life of sin that they led or are already devout believers who want to fund their cause. In another version, the recipient is informed that he has won an important lottery prize in a competition that he may or may not remember. The only thing the recipient has to do is pay for some sort of shipment or facilitation, a nominal sum. There is always a common thread connecting such tall tales. Eventually, the even after making one payment, the victim is told that some problem or the other has come up and some more money is needed. Perhaps the authorities are still unwilling to release the royal prince of some estranged family and they need to bribe them. The victim is drawn into more and more financial problems like a fly in a web and when the perpetrators get what they want, they dump the scheme and flee with the accumulated “funds” and “donations”.
These messages appeal to emotion but once one applies one’s logic and common sense, the message, regardless of its form, is exposed as nothing more than a scam. There may, of course, be actual instances of royalty in legal trouble but if you as an individual or company CEO were to get involved in the problems of a far-flung family or corporation, you are extremely likely to get trapped in legal entanglements. So, under all circumstances, such messages should be ignored.
Unfortunately, statistics show that far too many people have chosen emotion over logic. This was written in a 1997 newspaper article:
"We have confirmed losses just in the United States of over $100 million in the last 15 months," said Special Agent James Caldwell, of the Secret Service financial crimes division. "And that's just the ones we know of. We figure a lot of people don't report them."
Indeed, things had gotten so out of hand that in 1991 the Nigerian government was under tremendous pressure to issue a statement in response to this wave of crime that had apparently originated from there. This is what was written in a newspaper article covering the press conference:
The Central Bank of Nigeria (CBN) said on Thursday that swindlers using Nigerian names had extorted millions of dollars from people in the United States, Asia and Europe under the guise of transferring cash abroad.
The elaborate fraud involves fake official approval to transfer up to 15 million dollars in excess claims on bogus Nigerian contracts as well as pledges to cut the claims amount for help in the use of offshore bank accounts.
A CBN statement warned foreign companies and businessmen not to fall for the confidence trick, saying that the bank had been surprised and embarrassed by enquiries relating to the fraud. "The bank has no knowledge or record whatsoever of the purported claims or transfers, or even the related alleged contracts," it said.
The real Central Bank of Nigeria tried its best to warn people about this scam. But this renewed effort came too little too late as the damage had already been done. This is another stark reminder of the fact that people usually do not take cybercrimes seriously until after the threat is obvious.
Many feel cheated and manipulated as a result of Nigerian scams and want to see justice done speedily to the perpetrators, but this often easier said than one they are usually residing in other parts of the world. Law and order statutes may vary leading to disparities in how the criminal should be punished. Prevention is therefore better than cure.
Reference
Nigerian Scam
http://www.scambusters.org/NigerianFee.html
Nigerian 4-1-9 Scam
http://www.quatloos.com/scams/nigerian.htm
Nigerian Email Scams
http://www.crimes-of-persuasion.com/Crimes/Business/nigerian.htm