Money Transfer Request Scam

by Rudolf Faix Saturday, July 11, 2015 7:33 AM

dollars in an envelopeMoney transfer scams are on the rise. Be very careful when someone offers you money to help transfer their funds. Once you send money to someone, it can be very difficult, if not impossible, to get it back

The Nigerian scam (also called the 419 fraud) has been on the rise since the early-to-mid 1990s around the world. Although many of these sorts of scams originated in Nigeria, similar scams have been started all over the world (particularly in other parts of West Africa and in Asia). These scams are increasingly referred to as "advance fee fraud".

In the classic Nigerian scam, you receive an email or letter from a scammer asking your help to transfer a large amount of money overseas. You are then offered a share of the money if you agree to give them your bank account details to help with the transfer. They will then ask you to pay all kinds of taxes and fees before you can receive your "reward". You will never be sent any of the money, and will lose the fees you paid.

Then there is the scam email that claims to be from a lawyer or bank representative advising that a long-lost relative of yours has died and left you a huge inheritance. Scammers can tell such genuine sounding stories that you could be tricked into providing personal documents and bank account details so that you can confirm their identity and claim your inheritance. The "inheritance" is likely to be non-existent and, as well as losing any money you might have paid to the scammer in fees and taxes, you could also risk having your identity stolen.

If you or your business is selling products or services online or through newspaper classifieds, you may be targeted by an overpayment scam. In response to your advertisement, you might receive a generous offer from a potential buyer and accept it. You receive payment by cheque or money order, but the amount you receive is more than the agreed price. The buyer may tell you that the overpayment was simply a mistake or they may invent an excuse, such as extra money to cover delivery charges. If you are asked to refund the excess amount by money transfer, be suspicious. The scammer is hoping that you will transfer the refund before you discover that their cheque or money order was counterfeit. You will lose the transferred money as well as the item if you have already sent it.

Protect yourself:

  • If you have been approached by someone asking you to transfer money for them, it is probably a scam.

  • Never send money, or give credit card or online account details to anyone you do not know and trust.

  • Don’t accept a cheque or money order for payment for goods that is more than what you agreed upon. Send it back and ask the buyer to send you payment for the agreed amount before you deliver the goods or services.

  • Ask yourself if it is really safe to transfer money for someone I do not know?

 

Lottery Scams

by Rudolf Faix Friday, July 10, 2015 2:06 PM

Slot Machines"Congratulations! You’ve won the National Lottery! To claim your prize, just send us cash to pay the taxes in advance."

Sound familiar? It’s a classic Nigerian letter scam - originating in Spain - that bilks thousands of people around the world out of an estimated $24 million a year and opens the door to future identity theft.

How does the scam work? The names and addresses of targets - all outside of the named country - are collected through the Internet. Then you, the target, get a letter from the National Lottery claiming you’ve won about a few hundred thousand dollars in a special promotional lottery. An estimated six million letters are sent a year. The letters look legitimate, complete with official logos and contact information. They also include a form from the bank where the money is supposedly being held. You might even receive follow-up faxes and phone calls.

Then the hook: all you have to do is pay taxes from the country - between 0.5 percent and 2 percent of the winnings - to get the money. Just fax your completed claim forms with personal and banking information and wire the money within a couple of days. If you take the bait, chances are you’ll be asked to cover other expenses, too.

The Spanish National Police (SNP) has relentlessly pursued criminals in their country who has behind such a scheme. In July last year, they launched a massive crackdown that resulted in 300 arrests, 150 searches, and the seizures of nearly 2,000 cell phones, hundreds of computers and fax machines, plenty of fake documents, and $265,000 in cash.

This is truly a 21st century concept of policing: working internationally to protect you in your community.

You cannot win money or a prize in a lottery unless you have entered it yourself, or someone else has entered it on your behalf. You cannot be chosen as a random winner if you don’t have an entry.

Many lottery scams try to trick you into providing your banking and personal details to claim your prize.

You should not have to pay any fee or tax to claim a legitimate prize. Don’t be fooled by claims that the offer is legal or has government approval - many scammers will tell you this. Instead of receiving a grand prize or fortune, you will lose every cent that you send to a scammer. And if you have provided other personal details, your identity could be misused too.

A fake prize scam will tell you that you have won a prize or a contest. You may receive a phone call, an email, a text message or see a pop-up screen on your computer. There are often costs involved with claiming your prize, and even if you do receive a prize, it may not be what was promised to you.

The scammers make their money by making you pay fees or taxes, call their premium rate phone numbers or send premium text messages to claim your prize. These premium rate calls can be very expensive, and the scammers will try to keep you on the line for a long time or ask you to call a different premium rate number.

Avoid from getting scammed by these and similar frauds? Here’s an good advice:

  • NEVER give personal information over the telephone, mail, or Internet unless you initiated the contact.
  • Do NOT wire money to strangers.
  • NEVER send money to collect a prize if a fee is required.
  • If you think you’re being targeted, contact your local authorities.

 

Nigerian Letter or “419” Fraud

by Rudolf Faix Friday, July 10, 2015 5:43 AM

Laptop with flying bank notesNigerian letter frauds combine the threat of impersonation fraud with a variation of an advance fee scheme in which a letter mailed from Nigeria offers the recipient the “opportunity” to share in a percentage of millions of dollars that the author - a self-proclaimed government official - is trying to transfer illegally out of Nigeria. The recipient is encouraged to send information to the author, such as blank letterhead stationery, bank name and account numbers, and other identifying information using a fax number provided in the letter. Some of these letters have also been received via e-mail through the Internet. The scheme relies on convincing a willing victim, who has demonstrated a “propensity for larceny” by responding to the invitation, to send money to the author of the letter in Nigeria in several installments of increasing amounts for a variety of reasons.

Payment of taxes, bribes to government officials, and legal fees are often described in great detail with the promise that all expenses will be reimbursed as soon as the funds are spirited out of Nigeria. In actuality, the millions of dollars do not exist, and the victim eventually ends up with nothing but loss. Once the victim stops sending money, the perpetrators have been known to use the personal information and checks that they received to impersonate the victim, draining bank accounts and credit card balances. While such an invitation impresses most law-abiding citizens as a laughable hoax, millions of dollars in losses are caused by these schemes annually. Some victims have been lured to Nigeria, where they have been imprisoned against their will along with losing large sums of money. The Nigerian government is not sympathetic to victims of these schemes, since the victim actually conspires to remove funds from Nigeria in a manner that is contrary to Nigerian law. The schemes themselves violate section 419 of the Nigerian criminal code, hence the label “419 fraud.”

Tips for Avoiding Nigerian Letter or “419” Fraud:

  • If you receive a letter from Nigeria asking you to send personal or banking information, do not reply in any manner. Send the letter to your local authorities.

  • If you know someone who is corresponding in one of these schemes, encourage that person to contact the local authorities as soon as possible.

  • Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.

  • Do not believe the promise of large sums of money for your cooperation.

  • Guard your account information carefully.

 

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I'm since more then 35 years in the computer business (programming and technical support) and using the Internet since it has started. Since 2002 I'm programming solutions for Asterisk and since 2004 I'm in the call center industry.

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