Advance fee scam or 419 surfaces periodically The Bankers Association of Namibia (BAN) Chairman Ian Leyenaar says for banks - as custodians of clients money - safety and security is of paramount importance. BAN, in a series about bank scams over the last couple of weeks, advised customers to be alert of the Advance Fee Scam, or 419 scam where fraudsters repeatedly try to defraud funds from people in exchange for promises of lucrative profits. Ian Leyenaar, says “In this case the old adage – if it sounds too good to be true it probably is – definitely comes into play”. Advance fee schemes generally occur when victims pay an advance fee with the expectation of receiving something of greater value at a later date but then receive nothing in return. Leyenaar: “There are many variations of advance fee schemes. One common variation of this scam is the 419 Advance Fee Scheme. Despite repeated warnings, it continues to catch many innocent victims. Dont be one of them.” How do they work? In the example of the Advance Fee Scheme, a company or individual typically receives an unsolicited letter or email from a sender claiming to be a senior civil servant representing a bank or the government. In the letter, the sender informs the recipient that the sender is seeking a reputable foreign company or individual whose bank account can be used, for a substantial fee payable to the account holder, to facilitate a large financial transaction. The transaction would allow the deposit of millions of dollars”. The goal is to lure targeted companies or individuals into thinking that they have been selected to participate in a lucrative arrangement. The targeted company or individual receives numerous documents with official-looking stamps, seals and logos, which appear to testify to the authenticity of the proposal. Once engaged in the scheme, the targeted company or individual is told to either travel overseas to complete the transaction; provide blank company letterhead forms, banking account information and telephone and fax numbers and pay advance fees for various taxes, attorney fees, transaction fees or bribes to officials. The scam is completed when the promised money transfer doesnt take place. The fraudsters rely on the fact that, by the time the victims realize that the offer is a ruse they may have sent thousands of dollars of their own money to the fraudster. Leyenaar said that in order to steer clear of this fraud, people should remember that legitimate business is rarely conducted in cash or money orders. He advises: Know the individuals or parties with whom you are dealing. Dont enter into an agreement with strangers if you did not initiate the contact. Be wary of businesses that operate from post office boxes or mail drops and do not have a street address. “As banks we can only fight the battle against fraud if customers assist us by keeping personal information safe as well as always being weary of possible scams. Don’t become greedy,” ends Leyenaar.
Posted on: Tue, 16 Sep 2014 08:27:57 +0000