A look at the various advance fee fraud methods...

As part of my continuing "To Catch a Scammer" project, I've decided to begin analyzing various advance fee frauds.

Covered in this post:
Lottery/Contest Scam
Money Laundering Scam
Inheritance Donation Scam



Lottery/Contest Scam
One of the most common advance fee fraud scams I have seen is the "Lottery" or "Contest" scam.  In this scam, the recipient receives an email from a lottery, sweepstakes, or contest, congratulating the recipient on their winning.

Common faked senders:

• Major corporations such as CocaCola, Microsoft, Yahoo!, or Google
• Foreign Country Government Agencies
• Foreign News Corporations

Common winnings amounts:

• Anywhere between $1,000,000 and $5,000,000 USD.

How it works:

1. Victim receives notification of winnings
2. Victim replies to scammer with requested personal information
3. Scammer replies with contact information for fake bank/agency to claim winnings
4. Victim contacts fake bank/agency to claim winnings
5. Fake bank/agency replies with "delivery fees", "transfer fees", etc. which are needed from victim prior to receiving winnings

Money Laundering Scam
Another common advance fee fraud scam method is the "money laundering" scam.  In this scam, the victim receives an email from a person who has access to a secret account from which they can not draw funds directly, but require the assistance of a their party to move the funds out of country.  For helping them do this, the victim is offered a percentage of the amount being transferred.


Common faked senders:

• Oil tycoon
• Investment banker

Common award amount:

• Usually 40-50% of various monetary amounts, ranging from $10,000,000 to $50,000,000

How it works:

1. Victim receives notification of proposed arrangement
2. Victim replies to scammer with requested personal information
3. Scammer replies with contact information for fake bank to begin fund transfer
4. Victim contacts fake bank to begin transfer
5. Fake bank replies with "minimum deposit for new account", "delivery fees", "transfer fees", etc. which are needed from victim prior to receiving funds
6. Victim may also be requested to provide funds for "bribes", "legal fees", etc.

Inheritance Donation Scam
Similar to the Money Laundering common advance fee fraud scam method is the "inheritance donation scam".  In this scam, the victim receives an email from a "dying person" who has no heirs to pass their inheritance on to, and wishes to donate their inheritance to charity.  For helping them do this, the victim is offered a percentage of the amount being transferred.

Common faked senders:

• Widow of a rich oil tycoon
• Widow of a rich investment banker

Common award amount:

• Anywhere from 10 to 40% of various monetary amounts, ranging from $10,000,000 to $50,000,000

How it works:

1. Victim receives notification of proposed arrangement
2. Victim replies to scammer with requested personal information
3. Scammer replies with contact information for fake bank to begin fund transfer
4. Victim contacts fake bank to begin transfer
5. Fake bank replies with "minimum deposit for new account", "delivery fees", "transfer fees", etc. which are needed from victim prior to receiving funds