By LARRY NATION
AAPG Communications Director

AAPG Members Targeted

'Classic' Scam Game Rolls Again

A classic scam that has been around for years -- with some variations in its wording -- is again making the rounds among AAPG members.

The EXPLORER has received several inquiries from members concerning the obtaining of addresses -- as well as reports of members receiving these scam letters and e-mails.

According to the U.S. Secret Service, the perpetrators of Advance Fee Fraud (AFF), which is what AAPG members are experiencing, are often very creative and innovative.

AFF is known internationally as the "4-1-9" fraud, named after the section of the Nigerian penal code that addresses fraud schemes.

The e-mail/letter that members have received, almost always a request for a person's bank account number where millions of dollars can be "stored," actually is just setting the stage for the scam's real purpose; it is simply the opening round of a two-layered scheme.

The primary reason for the account request is to signal those involved that they have hooked another victim.

The scam e-mail or letter, while appearing transparent and even ridiculous to most, unfortunately is growing in its effectiveness, according to the Secret Service. The Financial Crimes Division of the Secret Service reports approximately 100 telephone calls from victims/potential victims and 300-500 pieces of related correspondence daily.

Indications are that AFF 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, authorities said.

The Sting

In response to this growing epidemic, the U.S. Secret Service established "Operation 4-1-9," designed to target Nigerian Advance Fee Fraud on an international basis.

Secret Service agents have been assigned on a temporary basis to the American Embassy in Lagos, Nigeria, 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.

According to authorities, 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 most prevalent and successful cases of Advance Fee Fraud involve the fund transfer scam. In this scheme, a company or individual will typically receive an unsolicited correspondence 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 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 to $60 million, 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 a travel visa from the American Embassy in Lagos.

The victim also 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.

Dangerous Liaisons

The criminal's goal is to delude the target into thinking that they are 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 in the scheme will be threatened in order to persuade the victim to provide a large sum of money to save the venture.

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 Nigeria 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 1995, an American was murdered in Lagos while pursuing a 4-1-9 scam, and numerous other foreign nationals have been reported as missing.

Several reasons have been submitted why the scheme has undergone a dramatic increase in recent years, and 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.

If you have been victimized by one of these schemes, forward appropriate written documentation to the U.S. Secret Service, Financial Crimes Division, 950 H Street, NW, Washington, D.C. 20001; or telephone (202) 406-5850.

If you have received a letter, but have not lost any monies to this scheme, the Secret Service asks to receive a fax copy of that letter or e-mail to (202) 406-5031.