RE: CRIME urgent (PUBLIC AWARENESS ADVISORY REGARDING "4-1-9" OR "ADVANCE FEE FRAUD" SCHEMES)

From: IWS Newsfeed (newsfeed@private)
Date: Fri Mar 14 2003 - 14:41:36 PST

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    PUBLIC AWARENESS ADVISORY REGARDING "4-1-9" OR "ADVANCE FEE FRAUD"
    SCHEMES
    
    4-1-9 Schemes frequently use the following tactics:
    
    An individual or company receives a letter or fax from an alleged
    "official" representing a foreign government or agency; 
    
    An offer is made to transfer millions of dollars in "over invoiced
    contract" funds into your personal bank account; 
    
    You are encouraged to travel overseas to complete the transaction; 
    You are requested to provide blank company letterhead forms, banking
    account information, telephone/fax numbers; 
    
    You receive numerous documents with official looking stamps, seals and
    logo testifying to the authenticity of the proposal; 
    Eventually you must provide up-front or advance fees for various taxes,
    attorney fees, transaction fees or bribes; 
    
    Other forms of 4-1-9 schemes include: c.o.d. of goods or services, real
    estate ventures, purchases of crude oil at reduced prices, beneficiary
    of a will, recipient of an award and paper currency conversion. 
    
    If you have already lost funds in pursuit of the above described scheme,
    please contact the U.S. Secret Service in Washington, D.C. at
    202-406-5850 or by e-mail.
    
    Nigerian Advance Fee Fraud Overview
    The perpetrators of Advance Fee Fraud (AFF), known internationally as
    "4-1-9" fraud after the section of the Nigerian penal code which
    addresses fraud schemes, are often very creative and innovative. 
    
    
    Unfortunately, there is a perception that no one is prone to enter into
    such an obviously suspicious relationship. However, a large number of
    victims are enticed into believing they have been singled out from the
    masses to share in multi-million dollar windfall profits for doing
    absolutely nothing. It is also a misconception that the victim's bank
    account is requested so the culprit can plunder it -- this is not the
    primary reason for the account request -- merely a signal they have
    hooked another victim. 
    
    
    In almost every case there is a sense of urgency; 
    The victim is enticed to travel to Nigeria or a border country; 
    There are many forged official looking documents; 
    Most of the correspondence is handled by fax or through the mail; 
    Blank letterheads and invoices are requested from the victim along with
    the banking particulars; 
    
    Any number of Nigerian fees are requested for processing the transaction
    with each fee purported to be the last required; 
    The confidential nature of the transaction is emphasized; 
    There are usually claims of strong ties to Nigerian officials; 
    A Nigerian residing in the U.S., London or other foreign venue may claim
    to be a clearing house bank for the Central Bank of Nigeria; 
    Offices in legitimate government buildings appear to have been used by
    impostors posing as the real occupants or officials. 
    The most common forms of these fraudulent business proposals fall into
    seven main categories: 
    
    Disbursement of money from wills 
    Contract fraud (C.O.D. of goods or services) 
    Purchase of real estate 
    Conversion of hard currency 
    Transfer of funds from over invoiced contracts 
    Sale of crude oil at below market prices 
    The most prevalent and successful cases of Advance Fee Fraud is the fund
    transfer scam. In this scheme, a company or individual will typically
    receive an unsolicited letter by mail from a Nigerian claiming to be a
    senior civil servant. In the letter, the Nigerian will inform the
    recipient that he is 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 criminals obtain the names of potential victims from a variety of
    sources including trade journals, professional directories, newspapers,
    and commercial libraries. They do not target a single company, but
    rather send out mailings en masse. The sender declares that he is a
    senior civil servant in one of the Nigerian Ministries, usually the
    Nigerian National Petroleum Corporation (NNPC). The letters refer to
    investigations of previous contracts awarded by prior regimes alleging
    that many contracts were over invoiced. Rather than return the money to
    the government, they desire to transfer the money to a foreign account.
    The sums to be transferred average between $10,000,000 to $60,000,000
    and the recipient is usually offered a commission up to 30 percent for
    assisting in the transfer. 
    
    
    Initially, the intended victim is instructed to provide company
    letterheads and pro forma invoicing that will be used to show completion
    of the contract. One of the reasons is to use the victim's letterhead to
    forge letters of recommendation to other victim companies and to seek
    out a travel visa from the American Embassy in Lagos. The victim is told
    that the completed contracts will be submitted for approval to the
    Central Bank of Nigeria. Upon approval, the funds will be remitted to an
    account supplied by the intended victim. 
    
    
    The goal of the criminal is to delude the target into thinking that he
    is being drawn into a very lucrative, albeit questionable, arrangement.
    The intended victim must be reassured and confident of the potential
    success of the deal. He will become the primary supporter of the scheme
    and willingly contribute a large amount of money when the deal is
    threatened. The term "when" is used because the con-within-the-con is
    the scheme will be threatened in order to persuade the victim to provide
    a large sum of money to save the venture. 
    
    
    The letter, while appearing transparent and even ridiculous to most,
    unfortunately is growing in its effectiveness. It sets the stage and is
    the opening round of a two-layered scheme or scheme within a scheme. The
    fraudster will eventually reach someone who, while skeptical,
    desperately wants the deal to be genuine. 
    
    
    Victims are almost always requested to travel to Nigeria or a border
    country to complete a transaction. Individuals are often told that a
    visa will not be necessary to enter the country. The Nigerian con
    artists may then bribe airport officials to pass the victims through
    Immigration and Customs. Because it is a serious offense in Nigeria to
    enter without a valid visa, the victim's illegal entry may be used by
    the fraudsters as leverage to coerce the victims into releasing funds.
    Violence and threats of physical harm may be employed to further
    pressure victims. In June of 1995, an American was murdered in Lagos,
    Nigeria, while pursuing a 4-1-9 scam, and numerous other foreign
    nationals have been reported as missing.
    
    Victims are often convinced of the authenticity of Advance Fee Fraud
    schemes by the forged or false documents bearing apparently official
    Nigerian government letterhead, seals, as well as false letters of
    credit, payment schedules and bank drafts. The fraudster may 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. 
    
    
    In the next stage some alleged problem concerning the "inside man" will
    suddenly arise. An official will demand an up-front bribe or an
    unforeseen tax or fee to the Nigerian government will have to be paid
    before the money can be transferred. These can include licensing fees,
    registration fees, and various forms of taxes and attorney fees.
    Normally each fee paid is described as the very last fee required.
    Invariably, oversights and errors in the deal are discovered by the
    Nigerians, necessitating additional payments and allowing the scheme to
    be stretched out over many months. 
    
    
    Several reasons have been submitted why Nigerian Advance Fee Fraud has
    undergone a dramatic increase in recent years. The explanations are as
    diverse as the types of schemes. The Nigerian Government blames the
    growing problem on mass unemployment, extended family systems, a get
    rich quick syndrome, and, especially, the greed of foreigners. 
    
    
    Indications are that Advance Fee Fraud grosses hundreds of millions of
    dollars annually and the losses are continuing to escalate. In all
    likelihood, there are victims who do not report their losses to
    authorities due to either fear or embarrassment. 
    
    
    In response to this growing epidemic, the United States Secret Service
    established "Operation 4-1-9" designed to target Nigerian Advance Fee
    Fraud on an international basis. The Financial Crimes Division of the
    Secret Service receives approximately 100 telephone calls from
    victims/potential victims and 300-500 pieces of related correspondence
    per day. 
    
    
    Secret Service agents have been assigned on a temporary basis to the
    American Embassy in Lagos to address the problem in that arena. Agents
    have established liaison with Nigerian officials, briefed other
    embassies on the widespread problem, and have assisted in the
    extrication of U.S. citizens in distress. 
    
    
    If you have been victimized by one of these schemes, please forward
    appropriate written documentation to the United States Secret Service,
    Financial Crimes Division, 950 H Street, NW, Washington, D.C. 20223, or
    telephone (202) 406-5850, or contact by e-mail.
    
    http://www.secretservice.gov/contact_fcd.shtml 
    
    If you have received a letter, but have not lost any monies to this
    scheme, please fax a copy of that letter to (202) 406-5031.
    



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