Advance Fee Fraud schemes are nothing new and, like us, most of you have likely had a client or two who has fallen victim to such a con. The United States Secret Service reports that they receive approximately 100 telephone calls and up to 500 letters a day from victims or potential victims. (See the USSS's "Public Awareness Advisory Regarding '4-1-9' or 'Advanced Fee Fraud' Schemes" for more info.) Recently, however, we have observed a new twist: the involvement of on-line banks.
Rather than originating out of Nigeria (home of the infamous “4-1-9" scam or, as it is known in Europe, the "Nigerian Connection"), these new schemes are being run out of England and Ireland. The unsuspecting victim is contacted by an (alleged) solicitor out of greater London and informed that they are the sole heir of a large inheritance from a hitherto unknown relative. The victim is then contacted by a bank which claims to be handling the transfer of the funds to the new beneficiary. Once an account is opened, the scam runs its ordinary course: getting the unsuspecting victim to advance greater sums of money without ever actually getting anything in return.
The involvement of the on-line banking industry–or, should we say, the alleged on-line banking industry–is a relatively new twist in the advance fee fraud scheme. These entities can be set up in a relatively short time, and the domain names used differ only slightly from established banks thus allowing for a veneer of authenticity. As a first step of your investigation, try running a domain name registry search on the bank’s domain name to determine the identity of the owner and where the bank’s website is hosted.
If your US based clients have lost money by anyone of these schemes, you should contact the United States Secret Service's Financial Crimes Division (950 H Street, NW, Washington, D.C. 20223, or telephone 202-406-5572.) If you or your clients have received a scheme letter, but have not lost any funds, you should fax a copy of the letter to the Secret Service at (202) 406-5031 as well as your local Attorney General. Those of you in the UK should contact the National Criminal Intelligence Service's West African Organised Crime Section at 020-7238-8012 if you have lost funds. If you have not, contact the Fraud Squad at your local police station.
(c)2004 Law Chamber of Nicholas
Critelli, p.c.