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S.Africa: 419 scam going from strength to strength

WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.

Original Post Date: 2004-02-25  Posted By: Jan

From the News Archives of: WWW.AfricanCrisis.Org
Date & Time Posted: 2/25/2004 5:20:41 AM
S.Africa: 419 scam going from strength to strength

[Nigeria’s greatest export to the world: CRIME. Nigerians are a nation of criminals. It was revealed on SABC TV news the other night that Nigerians control 80% of the drug trade in South Africa. They dominate most of South Africa’s cocaine trade. I get 419 scam letters by email every day of my life. Jan]

œOur point is this, says Shamsudeen Usman, deputy governor of Nigeria™s Central Bank: œYou may not be able to catch all of them, but Nigeria must begin to catch a few and make a typical example of those that you catch. That is the way you can remove the incentive for other people to join them.

The people that Usman hopes to net are Nigeria™s infamous advance fee fraudsters who are once again in the spotlight — thanks to a landmark trial that could even get a mention in the Guinness Book of Records.

Five Nigerians are in the dock in Abuja for allegedly defrauding a Brazilian bank, the Banco Noroeste of Sao Paolo, of $242-million. Nuhu Ribadu, head of Nigeria™s Economic and Financial Crimes Commission (EFCC) — the body prosecuting the case — describes it as œthe single biggest advance fee fraud case in the world.

The head of international finance at Banco Noroeste was reportedly tricked into stealing the money and transferring it to the accounts of the Nigerians. He is said to have been lured with the prospect of a cut from a fictitious contract to build a new airport for Abuja.

The case is just one instance — albeit a spectacular one — of the so-called œ419 scam, named after section 419 of Nigeria™s criminal code, which outlaws advance fee fraud.

The 15-year-old scam has seen millions of letters sent around the world by fraudsters who claim to know of large sums of money that are temporarily inaccessible. Their victims are routinely promised a share of this money, in exchange for helping to transfer it. However, any agreement to do so prompts requests for funds — or advance fees — to cover transaction costs.

The fraudsters often pose as senior Nigerian officials, although a more recent development has them claiming to be associates of dictators. It™s estimated that the public is duped into sending them hundreds of millions of dollars each year, with the United States and Western Europe worst affected.

In the wake of the terror attacks against the US in September 2001, Nigeria™s government came under increased pressure to clamp down on the fraudsters. US officials and the Paris-based Financial Action Task Force — an intergovernmental body to combat money laundering — warned that proceeds from this crime could ultimately be used to fund terrorists.

Under threat of sanctions from the task force, Nigeria reviewed its laws on money laundering — and also established the EFCC to arrest and prosecute the offenders.

The country™s central bank has also taken action, this after becoming a fixture in the plans of fraudsters who use fake documents from the bank — and impersonate its officials.

According to Usman, œ[A] bold step taken by the Central Bank of Nigeria is to inform the [commercial] banks through a circular that any bank that is careless enough to allow a 419 transaction to go through its system will be held responsible for the refund of the amount involved to the bona fide claimant.

But despite these efforts, it appears the scam is going from strength to strength.

In a public awareness advisory, the United States Secret Service says, œIndications are that Advance Fee Fraud grosses hundreds of millions of dollars annually and (that) the losses are continuing to escalate. In all likelihood, there are victims who do not report their losses to authorities due to either fear or embarrassment.

The greed of victims undoubtedly plays a role in the success of 419 frauds, as does rising unemployment in Nigeria — which makes crime attractive to some.

It is the growth of information technology (IT), however, that has been identified as possibly the biggest factor behind the scam™s expansion.

According to Nigerian IT expert Everest Amaefule, œThe internet has made it easier, cheaper and faster for the fraudsters to send scam letters to people around the world.

Cyber cafes spring up daily in major Nigerian cities, providing criminals with the ideal venue to send these letters — and search for the e-mail addresses of possible victims.

A presidential committee made up of security and IT experts has been set up to investigate internet fraud.

Although they have been criticised for turning a blind eye to unsavoury clients, cyber cafe operators say they are also ready to assist government in this regard. In fact, the operators have even formed an association to fight the crime. – IPS

Source: Daily Mail & Guardian
URL: http://www.mg.co.za/Content/l3.asp?ao=31727br>