Nigerian And Other Foreign Money Schemes
The "Nigerian" money schemes started over a decade ago. At that time, Nigerians would send letters in the mail. Now, the scheme originates from many countries and is often done over the Internet.
The original scheme started with someone claiming to be a Nigerian official, or a surviving spouse of a Nigerian official, offering to transfer millions of dollars into your bank account in exchange for helping to move large sums of money out of their country. Typically, you would need to provide your bank account information as well as some money to cover transaction and transfer costs and attorney's fees. Sometimes you would also be asked to travel to Nigeria. Some of the scammers would provide false authentic-looking documents or money. In the end, however, you will not receive any fortune and will instead lose your money to a scammer. If you get a letter or an e-mail from someone (from any country) claiming to need your help in getting money out of another country, do not respond.
The Nigerian money scheme has morphed into other types of cross-border scams. For example, you may see an advertisement in the classified section of your newspaper or you may be called by a telemarketer offering you a major credit card for an advance-fee. You may be told that you can get a credit card or loan regardless of your credit history. In order to get the credit card or loan, you may be asked to wire hundreds - or even thousands - of dollars to a Canadian (or other foreign) address. Beware; you may never receive the credit card or loan and will instead lose your money to a scammer.
Similarly, you may receive a letter or a phone call telling you that you have won a foreign lottery (which are illegal to play in the United States). But, in order to claim the money, you may have to pay for taxes, insurance, or processing or customs fees. Or, you may need to provide your bank account information in order for the money to be deposited in your account. In fact, you have not won a foreign lottery and instead will lose your money to a scammer. Beware of giving your account information to someone who calls you on the phone; once a scammer has your bank account information, (s)he can make unauthorized withdrawals.
Another potential scheme is check overpayment. Here's how this scheme works: you post an item for sale online. A scammer, oftentimes posing as a potential buyer from a foreign country, offers to buy the item using a cashier's check, money order or personal check. You receive a check that looks authentic. The check is made payable for more money than the item was offered for sale. The scammer asks you to deposit the entire check and then wire-transfer the over-paid amount back to them, or to another person. Some of the checks are so authentic-looking that they fool bank tellers. However, a few days later, the check bounces and you are not only liable to the bank for the worthless check, but you have also lost the amount of money you sent by wire-transfer.
Click here to file a complaint about a cross-border scam.
Other Useful Websites
- Federal Trade Commission
- PhoneBusters: the Canadian Anti-Fraud Call Centre
- United States Department of State (pdf)
