14 September 2003

Filipinos advised against "ADVANCE FEE FRAUD SCAMS"

The Filipino Community is advised to be on the lookout against the proliferation of the “Advance Fee Fraud Scam”.

The Advance Fee Fraud involves the payment of an advance fee in the form of tax, brokerage fee, bribe, and kickbacks under the pretext that the payment is required to actualise a purported business deal. The fraudsters claim to be high government officials with huge sums of money that need to be transferred abroad for safekeeping. The basic methodology employed is the sending of business proposals via fax, mail or e-mail to potential victims overseas.

This scam is also known in Nigeria as ‘419 Scam’ as it refers to the section of the Nigeria Penal Code dealing with this type of white-collar financial crime.

Several examples of proposals commonly used to attract potential victims involve:

• Transfer of funds from over-invoiced or failed contracts; (the most common)
• The promise of imaginary contracts or supplies;
• The contract for sale of crude oil below market prices;
• The bogus inheritance of huge money under a will to charitable organizations, religious bodies, and the request to assist in lodging the amount and payment of compensation for obliging;
• Real estate purchase;
• Payment for contract executed, and the request for advance payment to officials before payment is made; and
• Use of account for amounts to be lodged and promise of payment of percentage.

The fraudster usually claims to be a high Nigerian official from a government ministry or firm claiming to have huge sums of funds obtained from government through over-invoicing, kickbacks, or failed contract fees, which he/she wants to transfer abroad for safekeeping.

The letters are usually written in the most enticing language to appeal to the potential victim. Once the victim yields to this offer, more requests are made to get him/ her more deeply involved.

Several Filipinos and other nationalities have already been victims of this “get-rich-quick” scheme.