2023 was a record-setting year for fraudulent activity in the US. According to the FBI’s 2023 Internet Crime Report, there were 880,418 cybercrime complaints, with a total loss of $12.5 billion. The Federal Trade Commission’s Consumer Sentinel Network tallied over 5.39 million reports in 2023. 48% of these were for fraud and 19% for identity theft. One type of fraud that’s on the rise is 419 fraud. Also known as the Nigerian letter, advance-fee fraud, 419 fraud is no new kid on the block. In the article, we unpack 419 fraud and offer ways to protect yourself from being scammed.
What Is 419 Fraud?
419 fraud is an online scam that promises a large sum of money in exchange for a small payment upfront. It begins with an unsolicited email that seems to be sent from a wealthy company or individual, often from a foreign country. You may have received one of these letters before. The letter usually states that the sender has a large sum of money that needs to be transferred to an account outside their country. They often claim to have millions of dollars.
The sender proceeds to ask the recipient to provide banking details and then requests a small transfer of funds. This is usually a few thousand dollars. This upfront payment is justified as a means to cover taxes and fees that are charged. The recipient is promised a percentage of the lump sum to reward them for their assistance. Unfortunately, the promised lump sum doesn’t materialize, and the victim loses their upfront payment. In severe cases, this happens a few times before the victim realizes they’ve been scammed.
How Does 419 Fraud Work?
As one of the most common scam tactics, 419 fraud manipulates victims into a false sense of trust and urgency.
Building Trust
The first aim of the scammer is to build trust with their victim. They master the art of social engineering to manipulate victims into volunteering confidential information. 419 scammers will go to great lengths to continue communicating with their victims to reassure them that their offering isn’t a scam. They make sure of fake documents and will go to any length to reveal the legitimacy of their offer.
A Sense Of Urgency
Along with trust comes the pressure of urgency. Scammers will insist that the upfront payment is a time-sensitive requirement. They will push for immediate action to force the victim to make a quick decision. This tactic makes it hard for victims to properly consider the offer. People are often caught off guard and cornered into making a time-pressed decision. Before they know it, they’ve paid the upfront payment.
What Are The Red Flags To Look Out For?
Be sure to watch out for these red flags to protect yourself from falling victim to a 419 scam.
Guaranteed Easy Money
The saying, ‘There’s no such thing as a free lunch’ continues to ring loud and true. Scammers are known to promise you easy money with little effort required. If it sounds too good to be true, it probably is. And when it comes to the promise of a big reward for a small upfront payment, why would anyone make an offer like this?
Unsolicited Emails
Always be cautious of unknown emails that offer you money. A sure way to identify a fraudulent email is to look for grammatical or spelling errors. Reading carefully through these types of emails will help to confirm your suspicions.
Threat Tactics
You should never have to give in to the urgency tactic. Making time-sensitive decisions on financial matters from unknown senders is a no-no. Even if legal action is threatened, these are usually baseless claims. If you’re feeling rushed, step away.
Perusing For Personal Information
The sharing of personal information should always be done with caution. If you’re uncomfortable sharing it, you need to ask yourself why. Credible companies will never ask for sensitive information over an unsolicited email. It should always be done in a controlled environment with checks and balances. Be sure not to share your banking details with anyone.
Don’t Be Caught Unaware
Apart from the red flags mentioned above, it’s always important to be one step ahead. Ask yourself:
- Why would a stranger pick you to be the beneficiary of a large sum of money?
- Why would they ask you to share sensitive information over an email?
- If you’re being offered money, why make an up-front payment before receiving that money?
The key to detecting email scams is to be decisive. Never respond to these types of emails and delete them right away. The sooner it’s deleted, the less headspace you’ll commit to it. Also, be aware that reporting the scammer’s email address may not be the most helpful thing to do. Scammers have endless email accounts, and closing one of them may only make it more difficult to trace them.
Stay Informed With The Latest 419 Fraud Updates
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