New Advance Fee Schemes Reported: Old from Nigeria - New From Afghanistan
Almost every banker is familiar with the Nigerian letter or "419 scam", sometimes called an 'advance fee fraud'. It usually takes the form of a plea from a government official or a widow, or some other person who wants help moving money out of Nigeria, commonly from a phony inheritance or government contract. The victim is promised a percentage of the total - usually millions of dollars. If the victim "bites" there will soon be a claim of problems that require funds to pay lawyers fees, or to bribe officials, or shipping costs, or taxes.
Currently we are dealing with another version of Nigerian fraud, that of the counterfeit bank checks. The perpetrator will purchase something over the Internet that the victim has for sale. This is usually a large ticket item such as a car, a motorcycle or even, most recently, pedigreed puppies. If the cost is $6,000, the seller may receive a bank check for $20,000, with the explanation that someone else owed the buyer money, and they are paying by sending the check to the seller. The seller is instructed to deposit the check, keep the price of the merchandise and wire the balance to the buyer. Relying on the fact that official bank checks are widely known to be as good as cash, it's a shock when the check is returned marked "Counterfeit". Many financial institutions are now in litigation with customers who were told the deposited items would be good the next day, only to have the check charged back to their account a week or two later. (www.BankersOnline.com has a long list of already reported counterfeit bank checks).
The latest version of the email scam is perhaps the most insidious. It is purportedly from an American soldier in Afghanistan. This "Special Forces Commando" needs help getting terrorist drug money out of the country. One name reported is "Bradon Curtis" who says he found $36 million in drug money during a patrol, which is now in a suitcase. He'll ship it to you, and send you the waybill so you can claim the luggage, hold it for him and his friends and, of course, you'll get a percentage of the funds. If his offer is accepted, he'll no doubt also need money for shipping, to bribe officers, etc.
The Secret Service says they get about 13,000 letters forwarded to them every month, and about 100 calls daily from victims or potential victims. About 2,600 Americans bought into the scam last year, with 16 of them reporting losses totaling $345,000. Two individuals lost over $70,000 each.
Financial institutions need to be alert to this type of activity in order to protect themselves and their depositors.
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