A form of fraud in which the victim is persuaded to pay a fee in advance, on the false promise of a much larger sum of money, a valuable prize, or a lucrative business opportunity to follow, with the promised payoff never actually materializing once the fee has been collected. Its most widely documented modern form is the advance-fee or 419 scam, named after the relevant section of the Nigerian criminal code, in which a victim is contacted, historically by letter and more recently by email, with a request for help moving a large sum of money out of a country in exchange for a share of the funds, with the victim asked to pay a series of fees, taxes or bribes before the promised transfer never occurs.
Facts
Classification CodeAdvance-fee fraud is widely known as a 419 scam because the number 419 refers to the section of the Nigerian Criminal Code that deals with fraud, one of the few jurisdictions to give the offense a specific, commonly cited statutory number. 1 Typical PenaltyIn 2008, United States authorities in Olympia, Washington sentenced Edna Fiedler to two years in prison with five years of supervised probation for her role in a one million dollar Nigerian cheque scam, an example of the custodial sentences imposed once these cases are successfully prosecuted. 1 Elements of OffenseThe FBI defines an advance fee scheme as occurring when the victim pays money to someone in anticipation of receiving something of greater value, such as a loan, contract, investment, or gift, and then receives little or nothing in return. 1 Notable ExampleThe FBI reported that in 2019, 14,607 United States citizens were identified as victims of advance fee scams, with losses collectively exceeding 3.5 billion dollars, illustrating the offense's continuing scale despite decades of public warnings. 1 Jurisdiction VariationNigeria treats advance-fee fraud as a distinctly named offense with its own numbered Criminal Code section and a dedicated enforcement body, the Economic and Financial Crimes Commission formed in 2004, while most other jurisdictions prosecute the same conduct under general wire fraud, mail fraud or ordinary fraud statutes with no offense specifically named for it. 1 Classification
Offense GradeSerious or Indictable Offense 1 Sources
1. Advance-Fee Scam (Wikipedia)
Wikipediaen.wikipedia.org/wiki/Advance-fee_scam, lead paragraph
An advance-fee scam is a form of fraud and is a common scam. The scam works by promising the victim a large sum of money in return for a small upfront payment, which the fraudster claims will be used to obtain the large sum.
Lead section
The number "419" refers to the section of the Nigerian Criminal Code dealing with fraud.
Lead section, FBI definition
An advance fee scheme occurs when the victim pays money to someone in anticipation of receiving something of greater value, such as a loan, contract, investment, or gift, and then receives little or nothing in return.
Countermeasures section
In 2004, the Nigerian government formed the Economic and Financial Crimes Commission (EFCC) to combat economic and financial crimes, such as advanced-fee fraud.
Consequences section, apprehension and prosecution passage
In 2008 US authorities in Olympia, Washington, sentenced Edna Fiedler to two years in prison with five years of supervised probation for her involvement in a $1 million Nigerian cheque scam.
Implementation section, closing statistic
The FBI reported that in 2019 there were 14,607 US citizens that were victims of advance fee scams, which collectively represented in excess of $3.5 billion worth of lost funds.
View the Source Reader Challenges (0)
No disputes yet. Spotted an error or a better source? Open the first one.
Sign in to dispute this or suggest a correction.