Understanding Nigerian Letter Scams and Advance Fee Fraud

The Nigerian e-mail scam, also referred to as a 419 scam or the Nigerian letter scam, is a variation of advance fee fraud. In the Nigerian e-mail scam, the mark (or victim of the scam) is instructed or requested to send money in exchange for a much greater reward, such as a multi-million dollar inheritance or bequest.

The Origins of the Nigerian E-mail Scam

The Nigerian e-mail scam is actually a variation of the much older Spanish prisoner scam. In the prisoner scam, a con artist asks an unsuspecting person to send money so that the con man can free a wealthy person imprisoned in a case of mistaken identity.
 
The con artist tells the victim that the money is dedicated to bribing prison guards and that a large financial reward will be provided for his help. Once an initial payment is sent, the con artist may also request additional funds. Eventually, the victim will realize that there is no wealthy prisoner and no financial reward.

Distribution of Nigerian Scams

The Nigerian scam began in the 1980’s as money became tight and the economy declined. Initially, only wealthy businessmen were targeted via mail. However, the rise of e-mail provided con artists with an inexpensive way of targeting a number of people simultaneously. Along with Nigeria, other countries using or cited for similar e-mail scams include:
  • Benin
  • Burkina Faso
  • Cote d'Ivoire
  • Ghana
  • Senegal
  • South Africa
  • Spain
  • The Netherlands
  • Togo.
Nigerian scams have also been received via fax, regular mail, and even through postings on sites such as Craigslist or other message boards.

Variations of Nigerian Scams

Nigerian scams are frequently called 419 scams, referring to the article in the Nigerian Criminal Code (Chapter 38: "Obtaining Property by false pretences; Cheating"), which deals with fraud. Some of the variations of the 419 scams include:
  • Black currency: In this scam, the con artist has a lot of money that needs to be chemically cleaned and he wants you to forward him money for chemicals. He will split the money with you after he cleans it.

  • Spoof banks: This con is based on the premis that a large amount of money has been deposited for you in another bank. The con artist will then tell you that you need to send money for a wiring fee or transfer fee so he can send you the non-existent funds.

  • Will scams: This type of fraud starts with a con artist telling you that you have inherited a large sum of money. However, before you can get it, the conman will tell you that you have to send money for lawyers' fees or some other fake reason.
The common thread running through all Nigerian scams is that you will be asked for some type of advanced fee. If you think about it, it is ridiculous that somebody with millions of dollars would need several hundred dollars from you.
 
However, the scam has been successfully implemented for years. The 419 Coalition Website, which is dedicated to fighting the Nigerian scams with Education, claims that published reports document the Nigerian scam as the third to fifth largest industry in Nigeria.
 
Nigerian Scams and Wire Fraud
In some cases, Nigerian scams may be a form of wire fraud. Wire fraud occurs when you are conned into electronically sending money to a con artist. Because most Nigerian e-mail or letter scams ask for an electronic transfer of money, most are considered to be wire fraud, as well as advance fee fraud.

How to Spot a Nigerian E-mail Scam

In a Nigerian e-mail scam, you (the potential mark) will likely be addressed and treated with courtesy and respect. Often, the writer will claim to be a Christian and an upstanding citizen of his country.

You and other potential victims of the scam will then likely be told of a sad or unpleasant situation in an effort to gain your sympathy or pity. Some of the tragic situations that conmen will recount in Nigerian e-mail scams include:

  • a death in the family
  • a life-threatening illness
  • a sad love story
  • imprisonment.
The e-mail or letter will then ask you to send a small sum of money, maybe a few hundred dollars, in return for a great reward. Keep in mind that any request for you to send an initial sum of money to an unknown person is likely some kind of scam or fraud.

Tips to Avoid Nigerian Scams

Never send personal information, including your social security number or banking information, to anybody you do not know. If you receive a Nigerian scam e-mail, do not respond. Delete it.
 
The United States Postal Service (USPS) advises that if you receive a letter from someone in Nigeria or another African country, you should not respond. Instead, destroy the letter or send it to:
 
Inspection Service Operations Support Group
Two Gateway Center, 9th Floor
Newark, NJ 07175-0001.
 
Resources
 
Crimes of Persuasion (2000). West African Scam / Nigerian Advance Fee Fraud in Internet Web Mail Frauds and E-mail Letter Scams. Retrieved March 16, 2008, from the Crimes-Of-Persuasion Web site.
 
The 419 Coalition (n.d.). Nigeria - The 419 Coalition Website. Retrieved March 16, 2008, from The 419 Coalition Web site.
 
United States Postal Service (n.d.). How You Can Recognize a Nigerian Scam Letter. March 16, 2008, from the United States Postal Service Web site.