Nigerian Scam
 |
Definition of 'Nigerian Scam'A scam where the sender requests help in facilitating the transfer of a substantial sum of money, generally in the form of an email. In return, the sender offers a commission, usually in the range of several million dollars. The scammers then request that money be sent to pay for some of the costs associated with the transfer. If money is sent to the scammers, they will either disappear immediately or try to get more money with claims of continued problems with the transfer.Also known as "advance fee fraud" and the "419 fraud." |
 |
Investopedia explains 'Nigerian Scam'This specific type of scam is generally referred to as the Nigerian scam because of its prevalence in the region, particularly during the 1990s. There is also a section of the Nigerian criminal code, Section 419, that makes this type of fraud illegal. However, this scam is not limited to Nigeria and is also perpetrated by many organizations in many different countries around the world. The origins of this scam are widely debated with some suggesting it started in Nigeria during the 1970s, while others suggest its origins go back hundreds of years to other confidence scams such as the Spanish prisoner scam.The scammers hope that the commission offered will be enticing enough to compel the recipient to take the risk of sending thousands of dollars to a stranger. The reasons given for the transfer can differ from a government freezing an account to the existence of an account with no beneficial owner. When it comes to this type of request, however, it is important to remember that if anything sounds too good to be true - it usually is. Warnings signs of a Nigerian scam include a U.S. currency account in a foreign country, odd spelling and language in the body of the email and a promise of substantial compensation for little effort. |
Related Definitions
Articles Of Interest
-
The Biggest Stock Scams Of All Time
Where there is money, there are swindlers. Protect yourself by learning how investors have been betrayed in the past. -
Stop Scams In Their Tracks
Find out how to protect yourself and your loved ones from financial fraudsters. -
Avoiding Online Investment Scams
Find out how to spot internet fraud and protect your hard-earned money. -
Credit Scams To Watch Out For
More than 30 million people were victims of fraud in 2007. Will you be next? -
How does a pump and dump scam work?
A pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result ... -
Online Investment Scams Tutorial
To bamboozle someone out of their money is an age-old ruse. Learn about some of the gimmicks modern-day swindlers use and avoid becoming a statistic. -
How To Safeguard Your Tax Returns From Identity Theft
Identity thieves love tax season. In 2012, there were 13 million victims of identity theft. As easy as it is for thieves to steal your information, there are also simple measures you can take ... -
How To Report A Tax Cheat
If you report a tax evader to the IRS, you could be eligible for a reward. -
How To Identify A Micro-Cap Scam
Discover how to distinguish a real investment opportunity from a fraudulent one. -
5 Unethical Collection Scams That Consumers Should Be Aware Of
Here are a few of the ways that scam artists prey on those in debt.
Free Annual Reports
