Nigerian fraud scams, also known as advance fee scams, 419 scams, Nigerian prince scams, or Nigerian letter scams, have been tricking people for many years. While the names may vary, they all refer to the same type of scam – a fraudulent request for money with the promise of a larger payout in return. Scams like this continue to cause significant financial losses, with UK residents losing millions annually (Which?).
As people have become more aware of these scams and prevention tactics have increased – scammers have also adapted their methods. In this article, we’ll explain how these scams work, how to identify them, and the steps you can take to protect yourself.
What is a Nigerian Fraud Scam?
A Nigerian fraud scam, commonly called a 419 scam, is a type of fraud where scammers promise victims large sums of money in exchange for an upfront payment. This lie may be an inheritance, a lottery win, or just a generous offering from a wealthy individual.
These scams originated in Nigeria in the 1980s and have evolved. They often begin with an email, claiming to be from a Nigerian prince or a government official seeking assistance in moving large sums of money. In return for helping them, the victim is promised a substantial reward.
However, once the victim pays the initial fee, they are left with nothing as the scammer disappears with the money. Today, scammers have expanded their tactics beyond emails and now use social media, dating sites, and other online platforms to reach potential victims.
These scams can take several forms, including fake lottery winnings, requests for financial help, romance scams, or fake job offers. No matter the format, the basic premise is the same: pay upfront for a promised reward that never materialises.
If you’re interested in learning more about the common types of scams targeting young people, Top 5 Scams Targeting Young People provides more details on these deceptive schemes.
How Do Nigerian Fraud Scams Work?
Fake Lottery Winnings
A common tactic involves receiving an email informing you that you’ve won a large sum of money in a lottery. To claim your prize, you’re asked to pay a “processing fee” or “taxes.” After sending the money, the scammer disappears along with the funds.
Requests for Financial Assistance or “Business Deals”
Scammers often pose as wealthy individuals, such as government officials, who need help transferring money. They claim they’ll reward you with a share of the funds in exchange for your assistance. However, before the transaction can be completed, you are asked to pay various fees upfront.
It’s incredibly unlikely that a legitimate business deal would require you to pay money before any services or goods can be unlocked. Always research the situation thoroughly before committing. You can visit FCA ScamSmart to verify the authenticity of certain offers.
Romance Scams
Romance scammers build fake relationships on dating sites or social media platforms. They earn your trust and, once you are emotionally involved, ask for money to cover an emergency or travel costs. These scams often play on your emotions, making it harder to recognise that you are being manipulated.
Fake Job Offers or Investments
You may receive an email about a high-paying job or business investment opportunity. The scammer requests an upfront payment to cover “training” or “administration fees,” or they might ask for money to secure the investment opportunity. After paying, the victim never hears from the scammer again.
Scammers use psychological manipulation techniques to make these offers seem legitimate. They often create a sense of urgency, making you feel like you’ll miss out on a life-changing opportunity if you don’t act quickly. If you are ever uncertain, it’s important to pause and assess the situation.
The Nigerian Letter Scam
The Nigerian Letter Scam, a specific form of advance fee fraud, often begins with an unsolicited email. In these scams, the victim is told they will receive a large sum of money, often in exchange for helping move funds out of Nigeria. The scammer usually claims to be a Nigerian prince, business magnate, or government official.
As the scam progresses, the victim is asked to pay various “fees” in advance, such as legal fees, taxes, or processing costs. Once the payment is made and the scammer believes they have nothing left to steal, they disappear.
The Nigerian Letter Scam has become one of the most well-known types of 419 fraud, named after the section of the Nigerian Penal Code that deals with fraud. The scam may also be presented as a “business opportunity” or investment deal, but the result is always the same: an upfront fee with no payout.
How to Protect Yourself From Nigerian Fraud Scams
Be Careful with Unsolicited Messages
If you receive an unexpected message about winning a lottery or an offer for a business deal, take caution. Scammers often use unsolicited emails to lure victims. It’s essential to verify the authenticity of the message and never engage with unknown senders.
For more advice on how to spot scams, check out How to Spot a Scam and Protect Yourself. As always, if it sounds too good to be true, it almost certainly is.
Never Pay Upfront
A legitimate company will never ask you to pay money upfront for a reward or prize. Always be sceptical if someone asks you to send money before they send anything in return. This is a key sign of a scam.
Do Your Research
Before engaging in any financial or business transaction, thoroughly research the company or individual involved. Look for reviews, business registration details, and any relevant information that can help you verify their credibility. You can also refer to Citizens Advice – Scams for advice on how to recognise and avoid scams.
Keep Your Devices Secure
Ensure that your devices have up-to-date security software. Regularly check your security settings, and always be cautious about clicking on links or downloading attachments from unknown sources. You can also report suspicious emails to the National Cyber Security Centre.
Recognise Emotional Manipulation
Fraudsters often play on your emotions, whether it’s excitement, fear, or sympathy. If you feel pressured into making a quick decision or feel emotionally manipulated, take a step back and consider whether the offer seems too good to be true. If you suspect that you’re being scammed, trust your instincts.
Report Suspicious Activity
If you think you’ve been targeted by a scam, report it immediately to the relevant authorities. You can report scams to Action Fraud to help prevent others from falling victim.
Get Help with CEL Solicitors
If you’ve fallen victim to a Nigerian fraud scam, CEL Solicitors can help. We’ve successfully recovered millions of pounds for clients who have been scammed, and we are here to help you get your money back. Whether you’ve been scammed through an email-based advance fee scam or a fake business deal, we’ll fight to recover your funds on a no-win, no-fee basis.
Complete our online form or call 0330 822 3753 for help and support. We have helped thousands of people to recover their lost money and have returned over £100 million to scam victims. Tell CEL today.
