Advance fee fraud (AFF) is a type of scam where a victim is promised a significant reward (like money, loans, inheritance, or prizes), but to receive it, they must first pay a fee upfront. Once the payment is paid, the scammer either disappears or continues to ask for more fees without ever delivering the promised reward. Here’s a breakdown of how advance fee fraud works:
The Approach
The scam usually begins with an unsolicited message via email, phone call, social media, or letter. The scammer often presents an enticing offer or opportunity. Common examples include:
· Inheritance Fraud: You are told you’ve inherited a large sum of money from a distant relative.
· Lottery or Prize Scam: You’ve won a lottery or sweepstakes you didn’t enter.
· Business or Investment Opportunity: A lucrative business deal, real estate investment, or foreign money transfer is proposed.
· Loan or Financial Help Fraud: You are promised a low-interest loan or financial assistance in exchange for a processing fee.
The Excuse for Upfront Payment
Before you can claim the reward, the scammer claims some small, necessary fees must be paid upfront. These could be framed as:
· Processing fees
· Legal fees
· Bank fees
· Tax or customs fees
· Bribery or administrative costs (in some cases involving foreign officials)
The scammer might also mention that the fees are urgently required to ensure the opportunity is on time.
The Emotional Manipulation
Scammers often create a sense of urgency and exploit emotions to pressure the victim into acting quickly. They may say things like:
· “The deal will fall if we don’t get the fee today.”
· “We’ve done all the paperwork, but without this small payment, the funds cannot be released.”
· “You’re so close to receiving millions; you don’t want to miss this chance.”
The payment
Once the victim agrees, the scammer requests the payment, typically through insecure or untraceable methods, such as:
· Wire transfer (Western Union, MoneyGram)
· Prepaid debit cards or gift cards
· Cryptocurrency
· Cashier’s checks
Repeated Requests for Money
After the initial payment, the scammer may claim additional fees or problems have arisen, and more money is needed. They may give various reasons, including unforeseen costs, legal obstacles, or changes in tax laws. These requests can continue for weeks, months, or even longer if the victim keeps paying.
No Reward or Refund
Despite paying the fees, the victim never receives the promised reward. Eventually, the scammer stops responding or disappears altogether, leaving the victim out of pocket. Sometimes, the scammer may disappear after the first payment, but in more sophisticated schemes, they may continue to string the victim along for extended periods.
Common Types of Advance Fee Fraud:
1. Inheritance Scam: Victims are told they’ve inherited money but must pay fees to release it.
2. Nigerian Prince Scam (419 Fraud): The victim is contacted by someone claiming to be a foreign dignitary or prince who needs help transferring money from their country in return for a share.
3. Loan Scam: Victims are promised loans after paying an “advance fee” for processing or securing the loan, only never to receive the loan.
4. Lottery Scam: Victims are told they’ve won a large prize but must pay taxes or processing fees to collect the winnings.
5. Investment or Business Opportunity Scam: Victims are invited to invest in a business venture or help transfer money in exchange for a share of the profits.
Red Flags of Advance Fee Fraud:
· Unsolicited Contact: Any unexpected email or phone call offering money, prizes, or investment opportunities.
· Request for Upfront Payment: Being asked to pay fees in advance for a prize, inheritance, loan, or investment.
· Too Good to Be True Offers: The promise of large sums of money with little effort on your part is a vital sign of a scam.
· Untraceable Payment Methods: Requests to send money via wire transfer, prepaid cards, or cryptocurrency, which are hard to trace or recover.
· Poor Grammar and Spelling: Many advance fee fraud messages are poorly written or have inconsistencies in the story.
· Pressure to Act Quickly: Scammers often create a sense of urgency to push the victim into acting without thinking critically.
How to Protect Yourself:
1. Don’t Respond to Unsolicited Offers: Be cautious about emails or calls offering money, prizes, or business opportunities.
2. Verify the Source: If you are approached with an offer, independently verify the legitimacy of the person or company.
3. Don’t Pay Fees for Promised Money: Legitimate companies, lotteries, and inheritances will not require advance payments.
4. Use Trusted Payment Methods: Avoid sending money via untraceable methods like wire transfers, gift cards, or cryptocurrency.
5. Report the Scam: If you suspect advance fee fraud, report it to your local consumer protection agency or fraud prevention organization.
You can avoid falling victim to advance fee fraud and similar scams by staying informed and cautious.