The US government has threatened to impose sanctions on Nigeria
if the country does not take measures against financial fraud
schemes, known as the Nigerian e-mail scam, according to CW360. The
scam, also referred to as ‘419’, after the relevant section of the
Nigerian Criminal code, is believed to be the third largest
industry in the West African country.
According to the 419 Coalition web site citing Nigerian
newspaper Guardian, the Central Bank of Nigeria warned last week
that if a bank operating in the country “was found to have been
careless in allowing a criminal to defraud another person, it would
be made to refund the money involved.” The Bank also stated that it
has already made a commercial bank refund $400,000 to a US fraud
victim.
The 419 Coalition claims that the scam, which has run since the
early 80s, has defrauded victims out of $5 billion since 1996. The
419 scam involves a fax, e-mail or letter sent to the target,
proposing either illegal or legal business deals.
The victim is required to pay an advance fee, transfer tax or
“performance bond” to allow credit. If the fee is paid,
“complications” require more payments, until the victim quits or
runs out of money.
The latest victim of the Nigerian Scam was a 59-year old
bookkeeper for a small US law firm, who transferred $2.1 million
from the firm’s accounts to various accounts in South Africa and
Taiwan from February to August 2002. She believed that she could
replace the cash when she received her share of the profits.
According to the 419 Coalition, an FBI spokesperson told the
International Conference on Advance Fee Fraud (419) in New York
last week that the US government does not consider 419 victims as
criminals.
More details about the 419 fraud and instructions for residents
of the UK, US, Canada and South Africa can be found at the 419 Coalition web
site
