[CTS] U.S. warns Nigeria over online fraud schemes

From: "Peter" <lists@xxxxxxxxxxxxxxxxxxx>
To: <takeatip-leaveatip@xxxxxxxxxxx>
Date: Sat, 28 Sep 2002 12:49:30 -0400
U.S. warns Nigeria over online fraud schemes

By Gideon F. For-Mukwai, IDG News Service
SEPTEMBER 24, 2002

   Online schemes operating out of Nigeria that have defrauded victims
out of tens of millions of dollars have become so pervasive that the
U.S. government has given the West African country until November to
take steps to decrease such crimes or face sanctions. 
Financial fraud is now reportedly one of the three largest industries in
Nigeria, where the anonymity of the Internet is being used to give crime
syndicates a windfall. One oft-used form of fraud is known as "419," a
reference to Article 419 of the Nigerian criminal code, and involves
scam artists sending an unsolicited e-mail, fax or letter proposing
either an illegal or a legal business deal that requires the victim to
pay an advance fee, transfer tax or performance bond or to allow credit
to the sender of the message. 

Victims who pay the fees are then informed that complications have
arisen and are asked to send more payments, according to The 419
Coalition Web site, which explains the scam, offers rules for doing
business with Nigerian companies and individuals and provides specific
instructions for recourse to residents of Canada, the U.S., the U.K. and
South Africa. 

The global scam, which has been going on since the early 1980s, had
defrauded victims out of $5 billion as of 1996, according to the
coalition. 

The 419 scams and other online fraud are causing damage to the budding
Internet markets of West Africa because consumers are wary of doing
business with Nigerian companies and those in neighboring countries.
Europeans have been victimized more by the fake online investment deals
than have others, according to government and media reports. 

The U.K. National Crime Intelligence Service has counted more than
78,000 letters linked to online schemes sent to London residents. The
letters have defrauded residents there out of more than $37.2 million. 

Some of the criminals are full-time professionals who have set up
sophisticated but bogus e-commerce fronts with high-class Web sites,
according to Emmanuel Akutu of Softrail Nigerias. 

The online criminal activity has spread to other countries, including
Ghana, Liberia, Togo and the Ivory Coast, where technology literacy is
improving rapidly with government aid. Of all these nations, only Ghana
has a viable Computer Crime Act, which was one of the first in the
world. 

The Nigerian government has set up a special fraud unit. Its members
come from a range of agencies, including the State Security Service and
the Nigeria Intelligence Agency. The fraud unit has made many arrests,
but no one has been successfully prosecuted, according to news reports. 

 
http://www.computerworld.com/securitytopics/security/cybercrime/story/0,
10801,74535,00.html


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[CTS] U.S. warns Nigeria over online fraud schemes

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