nigerian scam

8/8/2019 Nigerian Scam

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National Law Institute University,

Bhopal

PROJECT OF ECONOMICS 3

On

NIGERIAN LETTER SCAM

Guided by :- Submitted by :-

MR C Rajashekhar BAIBHAW GAHLAUT

Roll no. - 2009 B.A. LL.B. 06

Enrollment no. A- 0868

Trimester 3

1st Year


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DECLARATION

The text reported in the project is the out come of my own efforts and no part of this report has been copied in any unauthorized manner and no part in it has been incorporated without due

acknowledgement

BAIBHAW GAHLAUT


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Acknowledgement

Every work is the outcome of efforts of many people and this work is no

exception to it. I would like to sincerely thank my respected Economics teacher

Mr. C Rajashekhar who had helped me with developing the necessary

understanding of the topic and for his patience without which this project

couldnt have been completed.


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Contents

What is the "Nigerian letter" scam?.......................................................................................................... 5

The Step-by-Step Anatomy of a Scam- .................................................................................................... 6

Besides email, how to the scammers contact their victims ........................................................................ 8

What happens next................................................................................................................................... 9

Avoid responding to these letters - ........................................................................................................... 9

Steps to Take If You Replied to a Scammer- .......................................................................................... 10

What toDo If You Receive a Scam Email-.............................................................................................. 11

CONCLUSION- ....................................................................................................................................... 11

BIBLIOGRAPHY- ................................................................................................................................ 12


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What is the "Nigerian letter" scam?

The Nigerian letter scam, as it is commonly called, is an "advanced fee" type of fraud. The

Advance Fee Fraud (AFF) email is also known as 419, named for the violation of Section 419

of the Nigerian Criminal Code. It is sent unsolicited by mail, fax, or most commonly by email, in

the form of a letter. Although letters come from around the world, the most common advance fee

fraud letters relate to funds held in or taken from West African nations such as Nigeria.

Con artists claim to be officials, businesspeople, lottery officials or the surviving spouses of

former government honchos in Nigeria or another country whose money is somehow tied up for

a limited time. They offer to transfer lots of money into your bank account if you will pay a fee

or taxes to help them access their money. If you respond to the initial offer, you may receive

documents that look official. Then they ask you to send money to cover transaction and

transfer costs and attorney's fees, as well as blank letterhead, your bank account numbers, or

other information. They may even encourage you to travel to Nigeria or a border country to

complete the transaction. Some fraudsters have even produced trunks of dyed or stamped money

to verify their claims.

The letter explains that the writer needs to access a foreign bank account that can be used to

transfer money through. The amount of money usually mentioned is upwards of US$10 million.All that's needed are details of your bank account and a few blank pages of letterhead if you're a

company. In return you are offered an opportunity to share in the millions. Many refer to

political events or major disasters, which is often how the writer came to have access to such

funds.

The letter is allegedly written by a Prince, a top officer from a company or a quasi government

corporation in an African state (the most common is Nigeria) or is from a family member of a

deceased senior person from the government, business or military.

The emails are actually from crooks trying to steal your money or perpetrate identity theft.

Inevitably, emergencies come up, requiring more of your money and delaying the transfer of

funds to your account; in the end, there aren't any profits for you, and the scam artist vanishes

with your money. According to U.S. State Department reports, people who have responded to


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pay in advance solicitations have been beaten, subjected to threats and extortion, and in some

cases, even murdered.

The Step-by-Step Anatomy of a Scam-If you've wondered just how these scams unfold, and what happens at each stage, here is the step

by step description of the typical lottery, Nigerian, AFF etc. scam:

1. The scammers get your name and email address, physical address or phone

number.

Maybe they found your email address somewhere online. Maybe you entered a

"sweepstakes" or win a car, tv or free vacation in a box at the shopping mall. Somehow

they got hold of your email address or other means to contact you.

2. Scammers write up a scam email or letter-

Scammers create a fake lottery or sweepstakes winning or "grant" email, a letter from a

lawyer or "barrister", government official, bank, "compensation for a business deal", or

acting as a "transfer manager" or whatever they think you will believe. Nothing in thewinning notification letter is true. Don't rely on appearances. They may copy logos,

photos, names, addresses and website links from real, legitimate organizations, to make

their scam appear more genuine.

3. You receive the email, letter or call

The emails or letters are sent by people working together in a fraud cell. The cell is a part

of a fraud ring that consists of a few members who work under direction of a fraud ring

leader. If you saw them at work, you would see a crowded room with laptop computers

and cell phones. They're now waiting for you to contact them, so they can begin to con

you.


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4. You contact the scammers and give them personal information

After you answer the first letter, they will write back asking for your personal

identification. Sometimes, they ask for this information in the first email. This is used to

steal your identity. They steal your identity by using your personal banking information,

passport number, driver's license number, or credit card information. They don't care

whether your credit is good or bad. They use this information to:

y open accounts you don't know about.

y buy things on these credit cards, in your name and then do not pay for

them.

y take out loans in your name and do not repay them.

y commit crimes using your name and leave you responsible.

y Felons may even get jobs using your name.

Creditors will contact you asking for their money. Police will contact you and may even

detain you for questioning to determine if you are telling the truth.

5. They want your money

Next, they begin to con you for money. They usually ask for money in the second or third

letter; sometimes they ask for money in the first letter or the fourth letter. Legitimatelotteries and sweepstakes) NEVER ask for money at ANY time. Keep these points in

mind:

1. Taxes are never paid through anyone else or by anyone else. If you really win a

real lottery or sweepstakes, the only money you owe is the tax, which you will

pay directly to your government, AFTER you receive the winnings. This is true in

every country, worldwide.

2. There are NO other fees: no bank fees, storage, shipping, or "insurance"

("hardcover" or any other kind)

3. Any documents they send you are counterfeit or forged.

4. There is no document to be signed stating that the "winnings" will not be used for

terrorism or illegal purposes.

5. Lottery money is not stored at a "security house".


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6. Lottery money is not shipped in cash.

7. Lottery money is never sent by courier.

6. What if they send me a cashier's check? Can't I just cash it?

ABSOLUTELY NOT! The check or money order you have received is certain to be

COUNTERFEIT or stolen. If you cash it, you will be responsible for the entire amount.

You may also be arrested for fraud. Legitimate lottery winnings are sent by check using

DHL, UPS, or FedEx. The check has the lottery company name on it, no other names!

The address, phone numbers and any other information on the check will match the real

lottery company. It will be one that you can verify on your own, without asking the

people who wrote the letters, such as doing Google search on the name of the lottery and

visiting their website.

7. If you did, you cannot get your money back. Once the funds are sent through Western

Union and picked up at the other end, there is no trail to follow. You don't even know to

where you sent the money or who actually picked it up. The funds you sent can be picked

up at anyWestern Union or Money Gram office anywhere in the world, by anyone who

supplies the name and identification on it, which is usually made up / false. The criminals

walked out the door of the office with your money and disappeared, never to be seen

again.

Besides email, how to the scammers contact their victims

We're discussing AFF scam emails, but the scammers will use any method to reach their victims,

including:

Mail / Post

FaxPhone

Chat rooms

Dating web sites

Matchmaking web sites

Mobile phone SMS (new)


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Internet phone - VOIP (new)

Internet gaming (new)

Personal introduction

Web sites publishing general business contacts or for specific industries

Call centre / boiler-room

Door-to-door - in countries were an internet connection or sometimes phone or fax

connections are not yet common circumstances.

What happens next

Nigerian fake lottery scams usually involve a pair, consisting of a fake lottery and a fake bank

(or attorney, securities company or courier service). In the fake bank scheme, the victim is

notified of a lottery win and told the prize will be paid into a bank account at a private bank in

London (or other city). The victim is told he or she must open an account there, usually with a

minimum deposit of $5000. The victim is told he/she will be able to access his/her account with

the winnings and the deposit in it within 24 hours of setting up the account and the "winnings"

being sent.

Of course, that never happens. Once the victim opens an account and makes a deposit, the

criminals simply pick up the cash wired to the UK as a deposit at a Western Union agent (such as

a major post office) and move on to the next victim. There really was no bank account, or even

bank, just as there was no lottery prize to start with. Except for the gang member who picks up

the cash in London or other city, most of the members of the gang are based in Nigeria.

Avoid responding to these letters-If you do respond you will be asked to pay a processing fee of tens of thousands of US dollars

before the "funds" can be lodged in your account. That's the last you will see of your money, or

the promised share of $30 million.


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We also do not recommend responding in jest. Responding merely confirms that your email

account is active, and may mean you will continue to received such solicitations.

If you're tempted to respond to an offer, we suggest you stop and ask yourself two important

questions:

1. Why would a perfect stranger pick you also a perfect stranger to share a fortune

with, and

2. Why would you share your personal or business information, including your bank

account numbers or your company letterhead, with someone you don't know?

Steps to Take If You Replied to a Scammer-If you have replied a letter, email or phone call regarding a lottery or sweepstakes winning, a

loan, debt consolidation, a dating scam, a money transfer, inheritance from some dead leader in

Africa or an unexpected cashiers check, then you may have already lost money or had your

identity stolen. Here are the key steps to follow:

1. DO NOT COMMUNICATEWITH THE SCAMMERS!They are dangerous

criminals. You can be physically injured and even killed by fraud criminals. Do not travelto meet them or "claim your winnings". Some people who traveled to Nigeria and South

Africa been beaten, kidnapped, or murdered. CEASE communicating with immediately -

DO NOT REPLY TO THEM AGAIN! DO not attempt to debate with them. They will

NOT give you your money back. You must go to the police, see step 5)

2. If you have given the scammers any personal information, such as name, address,

phone number, passport number, driver's license number, bank account information,

credit card information, etc, but also continue to step 3 below.

3. Contact your bank- if you have sent money via a bank transfer or check, contact you

bank and see if payment can be stopped.

4. Contact your credit card company - if the scammers charged anything to your credit

card, with or without your approval.


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5. File a police report. Get a copy of the report to submit to your creditors and others that

may require proof of the crime.

What to Do IfYou Receive a Scam Email-

1. Do not respond to the emails

2. Do not ever pay any money or fees.

3. Do not reveal your full identity.

4. Don't reveal any financial or personal information, such as your bank account

number, social security number, driver's license number, passport number or

credit card details.

5. Do not ever travel to meet them.

CONCLUSION-

The Nigerian Advance Fee Scam has been around for quite awhile, but despite many warnings,

continues to draw in many victims. Indications are that the advance fee fraud grosses hundreds of

millions of dollars annually and the losses are continuing to escalate.

The Nigerian Advance Fee Scheme is generally targeted at small and medium sized businesses,

as well as charities. The goal of the scam artist is to delude the victim into thinking that he or she

has been singled out to participate in a very lucrative -- although questionable -- arrangement.

The intended victim is reassured of the authenticity of the arrangement by forged or false

documents bearing apparently official Nigerian government letterhead, seals, as well as false

letters of credit, payment schedules and bank drafts. The scam artist may even establish the

credibility of his contacts, and thereby his influence, by arranging a meeting between the victim

and "government officials" in real or fake government offices.

Once the victim becomes confident of the potential success of the deal, something goes wrong.

The victim is then pressured or threatened to provide one or more large sums of money to save

the venture.


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BIBLIOGRAPHY-

y http://www.scambusters.org/NigerianFee.html.

y http://www.consumerfraudreporting.org/nigerian2.php

y http://www.snopes.com/fraud/advancefee/nigeria.asp

y www.state.gov/www/regions/africa/naffpub

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