Advance-fee (a.k.a 419) Fraud

Ever got those emails about a Nigerian businessman or merchant wanting to deposit money with you? or ..something on the lines of "I don't know where to keep all this money/treasure..I have so so much!", well..it is a bull****. and popularly known as 419 fraud, or called it the "Advance Fee Fraud". There some other forms of the same fraud too, and here is why it is a "fraud". Below incident prompted me to write this blog.

So my wife wanted to sell an iPod (we had an extra one, don't ask how), so we put it up on craigslist. Out of the 10 replies she got, 7 of them were strangely saying that they will pay MORE than what we have asked for. We were selling it for $70, ..the buyer (call him Charlie) was willing to pay $200. Strange? Yes. So here was the catch. Apparently, Charlie wanted us to pay him back the difference (why!) ..and then it would be all balanced. He messed with the wrong person though, since I was reading about this fraud that week (for a class that I teach). Here is how the fraud works.

1. Charlie requests that he will buy your item for $200 (even though you are selling for $70). Sometimes he may ask to keep a few dollars as reward for yourself (well..)

2. You agree, and ask Charlie for the money.

3. Charlie sends you a fake email that the money has been deposited.

4. Fake email says that you need to type in the mailing conformation number, or the bank confirmation number (for $200-$70=$130 difference you owe Charlie) for the deposit you made into Charlie's account.

5. You hit the bank submit button and pay $130 to Charlie (and record the confirmation #). You might have already shipped the item too!

6. Guess what! you've lost your money and also the item you shipped -- there is no Charlie, and neither has he deposited $200 into your account earlier. You check your account, and call your bank multiple times -- only to hear an angry voice that there has been no such deposit from Mr. Charlie!! "No deposits, no Charlie".

7. Now your item is enroute to some address (possibly someone waiting to picked up at a side walk) ..and your $130 is also gone. Heck!

WOW. genius! But these guys have been chased before -- some have been caught, and some are still at large. So if you get an email claiming to pay more (or ship item before confirming payment) ..please beware. I was lucky!

One last note. Most such email have someone named to be in Nigeria, or East Africa -- but I doubt all are true. Someone next door could writing these email, and claiming domicile in Nigeria..though this form of fraud apparently started here. Read more here:
http://en.wikipedia.org/wiki/Advance-fee_fraud