Advance Fee Business Scams

Advance Fee Business Scams

United States Department of State
Bureau of Consular Affairs

Foreword

This pamphlet was prepared by the Department of State's Bureau of Consular Affairs to provide useful information to Americans who engage in business abroad. This information offers you guidelines to protect yourself while you are overseas conducting business.

Many Americans are familiar with Nigerian advance fee business scams and the vast amounts of money lost in these fraudulent transactions. However, unbeknown to many until recently, advance fee business deals and investments of this sort have also been initiated in other countries such as Togo, Ghana, and Benin. Some of these businesses are rooted in one country, and the final deals are carried out in other places such as Europe and Canada. This form of fraud has and is moving swiftly to an international level.

Advance fee fraud is expanding so rapidly that within recent years there has been a surge of websites and private industry businesses developed to specifically combat fraudulent business propositions.

Identifying A Business Scam

Each week, many U.S. embassies and consulates deal with "scams." The scam artists seek businesspeople and common people alike. Many of those scammed experience significant loss, ranging from thousands to millions of dollars.

Most often, when persons go overseas to "finalize deals," they find themselves not only losing money, but they also risk bodily harm from their business associates.

Types of Scams & How They Work

Money Transfer: The operator claims to have a large sum of money, usually millions of dollars worth of ill-gotten gains, which needs to be transferred to a "safe" bank account abroad. You, as the bank account owner, are promised a percentage of the huge sum, in exchange for use of your account. You may be asked to provide blank, signed invoices, letterhead and bank account information, or to send money for transfer taxes in advance.

Fraudulent Order: The operator usually places a small order ($1000 or so), paying with a genuine cashier's check drawn on a European bank. A second, somewhat larger order is placed, again paid for legitimately. Then, you receive an order from your overseas partner urgently requesting that a large quantity of your product be air-shipped. Confident in your previous dealings, you send the product prior to receipt of payment. When the cashier's check (which looks the same) finally arrives, you learn it is fake, while attempting to make a deposit.

Charitable Donation: The operator offers to donate to your organization, and asks for bank account information (see Money Transfer, above).

Contract: The operator claims to have a foreign government contract and needs your company's expertise to carry out the job. The operator scams you by collecting thousands of dollars in "fees" before you can do business. When fees are legitimate, they are published by Ministries and do not exceed $215 USD.

How Scam Artists Contact You

These fraudulent operations use the internet, e-mail and fax correspondence to troll for and then reel in potential victims. If you receive such a solicitation, contact your local law enforcement officials immediately.

Am I Being Scammed?

If you are in the U.S., contact the country Desk Officer at the Dept. of Commerce (see address above). You may want to contact local police as well, if threats have been made against you. If you are abroad, contact the nearest U.S. embassy or consulate.

What Can The U.S. Embassy Do?

The U.S. embassy or consulate officers will help you by directing you to the appropriate local law enforcement authorities, to report the details of the scam and any threats made against you. They can facilitate the replacement of your passport, provide communication with relatives in the United States and, if necessary, provide an emergency repatriation loan. But, the U.S. Embassy or Consulate cannot recover a scam victim's money.

Traveling Abroad?

Please consult http://travel.state.gov before you go. You will find Consular Information Sheets (and Public Announcements or Travel Warnings, if applicable) for the countries you plan to visit.