Web of Deceit

Posted on 1 Jul 2004 at 11:28

This con is constantly developing. For instance, conmen now explain in their initial email that banks will never ask for security details but then go on to do just that. Web redirection is also now used to bamboozle victims. The initial email link directs the victim to a fake version of the site but also opens an authentic copy of the site in a second browser window behind it.

HOW TO STAY SAFE
Don't visit your online bank using a link in an email. Use a Favorite or type the web address into the browser. Banks never email their customers and ask for PINs so if you receive a suspicious email, do not enter sensitive information. If your bank is aware of a scam, there will be a warning on its real website so check there. You should also keep an eye on www.antiphishing.org, a news site dedicated to exposing similar scams.

SCAM 3: NIGERIAN 419

Advance fee or 419 fraud is a scam that predates the internet. It is usually known these days as 419 fraud after the section of Nigeria's penal code that it breaks. A victim receives an email supposedly from a high-ranking Nigerian official who needs help getting vast quantities of cash out of the African state and into the UK. For their help, the victim will get a healthy share of the loot. After the victim accepts in principle to help the scammer, they are hit for a large number of fees allegedly involved in moving the money. See the box 'Anatomy of a 419 Fraud' on page 230 for more details.

HOW TO STAY SAFE
Don't get involved. Thankfully, fraud of this kind is formulaic and easy to spot. Learn the telltale signs from our mock-up or visit the archive of letters at www.419fraud.com.

SCAM 4: FOREIGN LOTTERY

The foreign lottery scam involves victims receiving a congratulatory email explaining they've won a massive prize - usually thousands of euros. This scam is another form of advanced fee fraud as when you contact the official-sounding sender, you'll be asked for a fee to administer your winnings. This can be hundreds or thousands of pounds. Send the money off and you'll get nothing in return. Credit card company Egg has recently highlighted this type of scam in its TV adverts.

HOW TO STAY SAFE
According to the Metropolitan Police this type of fraud is on the rise. See www.met.police.uk/fraudalert/briefings/apr2003.htm for examples and advice. The police have some succinct advice for anyone in doubt about a fishy-sounding prize: "If it sounds too good to be true, it is." Remember this and you won't go far wrong.

SCAM 5: HIGH-YIELD

INVESTMENT FRAUD
This scam takes the form of an email containing details of an impressive-sounding investment that, if you partake, will make you stacks of cash. In reality, you can usually kiss your money goodbye.

What makes this style of scam of great concern to American and British authorities is its prevalence and how convincing the fraud emails are. The scammers have mastered the rhetoric of high finance. They offer you anything from access to the Rockefeller family's private fund to Hitler's pre-World War II gold bearer shares recovered from a lake in Austria and a million schemes between.

Beyond these bond and fund schemes, 'pump and dump' investment cons are very common. The fraud involves scammers buying up shares in a company. When they've amassed a sufficient holding, they'll email a fake newsletter to potential victims advising them that the shares in question are set to leap in value. The victim should buy now! If enough punters do this, the share will naturally increase in value. When this happens, the scammers will sell their holding and make a killing.