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FOR IMMEDIATE RELEASE

April 4 , 2003

This information is provided by RAC John Kirkwood, USSS-Spokane

NIGERIAN AND WEST AFRICAN ADVANCE FEE SCAMS

Due to a high increase of recent occurrences in this area, the United States Secret Service in Spokane, WA would like to alert Eastern Washington and Northern Idaho residents, businesses and Financial Institutions about a new twist on an old theme - "Nigerian" scams.

The perpetrators of Advance Fee Fraud, known internationally as "419" fraud after the section of the Nigerian penal code which addresses fraud schemes, are often creative and unfortunately effective. In this scheme, a company or individual will typically receive an unsolicited letter by fax or email from a Nigerian claiming to be a civil servant. In the letter, the Nigerian will inform the recipient that he seeking a reputable foreign company or individual into whose account he can deposit funds ranging from $10-$60 million that the Nigerian government overpaid on some procurement contract. The recipient is usually offered a commission up to 30% for assisting. Victims are often convinced of the authenticity of Advance Fee Fraud schemes by the forged or false documents bearing apparently official letterhead, seals, as well as letters of credit, payment schedules and bank drafts.

According to the United States Secret Service, this scheme grosses hundreds of millions of dollars annually and the losses continue to escalate.

The newest version of the Nigerian scam targets consumers who have an item to sell listed on the Internet. Below is a typical scenario of the Nigerian counterfeit cashier's check scam, which has surfaced in the last six to eight months in the United States:

A seller lists an item on the Internet - a classic car, pure-bred animal, etc. The seller receives an offer to buy the item at or above the asking price from a buyer, usually from Nigeria or "West Africa", who agrees to send the seller a bank cashier's check. The buyer then advises the seller that he is owed money from a third party in the U.S. in an amount greater than what he owes seller. The buyer offers to send the cashier's check to the seller for the full amount, and asks that the seller send him the balance, "after the check clears, of course".

Generally, the sellers are skeptical but, in the scam, an authentic-looking U.S. bank cashier's check arrives by Federal Express. The seller's bank accepts the check and assures the seller that the funds are available. The seller wires the balance to the buyer and prepares to ship the item.

Usually, within a week, the bank contacts the seller to say that the cashier's check is counterfeit and worthless. The seller's account may be frozen, and the bank requires payment to cover the counterfeit check. The seller may even be suspected of fraud himself for passing the counterfeit check. The Secret Service warns that certain actions taken by individuals falling for these schemes, such as securing loans under false pretenses (ie. home equity, student loans) in order to send money to the advance fee suspects, could be construed as Bank Fraud and investigated accordingly.

While the items for sale may vary and the reasons given for sending a check in excess of the sale price may change, the bottom line is SELLER BEWARE!

Another variation of this twist is the solicitor contacting prospective "investors", pretending to be an official with the U.S. Customs Service. In this version of the scheme, the solicitor tells the victim that a letter was intercepted at the Canadian border indicating they have inherited a large sum of money. The solicitor than demands a "tariff fee", usually amounting to several thousands of dollars, be sent to the solicitor to "free up" the funds.

The Secret Service warns consumers who use the Internet for selling goods to be extremely skeptical of any buyers, especially those with a connection to Nigeria or West Africa, who offer to pay by a cashier's check. Chances are the check will be counterfeit and, although your bank may make funds available to you and the check initially "clears", if the check is determined to be counterfeit, you may be held responsible for the amount of the check.

The Secret Service asks Internet users to use common sense when solicited by these individuals and not get "blinded" by the large amounts of money being offered. Consumers should be asking themselves; why does someone I don't know from a foreign country trust me with such a large sum of money? In other words, if sounds too good to be true, it probably is.

The Secret Service also asks Financial Institutions to be diligent when approached by bank customers who are making suspicious deposits, particularly foreign cashiers checks in unusually high dollar amounts. Banks should make an effort to confirm the validity of the check by contacting the issuing bank.

If you have questions about this alert or have been a victim of any of these scams, please contact the United States Secret Service at (509) 353-2532, or your local police department.