The Nigerian Scams...
In The News

Teen nearly scammed of $9,000
By Micheal Burke

RACINE - People have used the Internet to sell everything from linens to land, so Jennifer Runke of Racine naturally tried to peddle her car online.

However, Runke, 18, came very close to parting with $9,000 instead of her 1999 Mitsubishi Eclipse. In exchange, she would have had a very authentic-looking, but entirely worthless, cashier's check for $20,000.

The scam that targeted Runke was another from Nigeria, home of the persistent con game that claims there are millions of dollars in oil revenues just waiting for an American partner to share the loot.

In this case, a con artist operating as "Dickson Mills," and using a Yahoo e-mail account, picked up Runke's car ad either on eBay or AutoTrader.com. Claiming to be an agent for a buyer, "Mills" contacted Runke by e-mail, feigning interest in her car. That began a flurry of e-mails back and forth as Mills tried to seal the deal.

"He didn't tell me where he was from," Runke said. "... I just assumed he was from around here."

It sounded that way at first, when Runke thought she had a buyer for her Eclipse at $11,000. On Jan 2, the alleged agent wrote saying he wanted to set up a time to inspect and test-drive the car.

On Jan. 7, "Mills" wrote that his client had limited means of payment "but he desperately needs a car." The client was expecting a refund on another vehicle purchase he had supposedly backed out of.

That's where the fictitious $20,000 payment came in because, "due to company policy and bookkeeping, this refund payment which he is expecting can only be made out in this one whole amount ..." Mills claimed.

He proposed sending Runke the $20,000 check, which she was to deposit, then wire back the $9,000 difference. That supposedly would offset shipping charges and other commission charges.

There were lots of detailed instructions about how it was all supposed to be conducted. The cashier's check for $20,000 arrived by FedEx early last week, bearing a return address of Atlantic Research Survey in Nigeria.

Meanwhile, Runke's parents, Bob and Maureen Runke, were watching this unfold. Maureen, feeling something was amiss, took the $20,000 check to her employer, the Bank of Elmwood, to see if it was genuine.

Of course, it wasn't. The check would have bounced, and Runke would have been $9,000 poorer, had she wired the money.

Her father said the ruse could have worked. "Take away the $20,000 check and the $9,000, and it sounds legit," he said.

Officials at the Gainesville, Fla., bank on which the phony check was to be drawn "said they'd had seven this week out of Nigeria."

"We didn't know that you could make fraudulent cashier's checks," Jennifer said.

"I'm glad it didn't happen to me, because I don't have a lot of money."

She does still have her car. "I was really upset," she said, "because I've turned down a couple of people" who were interested in the car she'd reserved for her mysterious buyer.

The FBI is aware of the various Nigerian scams but largely powerless to stop them. "It's been running rampant for ages," said Monica Shipley, spokeswoman for the Milwaukee FBI office.

The only thing the agency can do is try to work through its attaché in Nigeria and seek the cooperation of that government, she said.

People who encounter Internet fraud cases may report them to the Internet Fraud Complaint Center, a partnership between the FBI and the National White Collar Crime Center: www1.ifccfbi.gov

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Police warn of Internet scam
By JOHN RICHMEIER, Times Staff Writer

Local residents are asked to be on their guard against fraudulent e-mail and other scams being perpetrated over the Internet.

Leavenworth police Lt. Pat Kitchens said over the last month his department has been contacted by a number of people concerned about e-mail they have received.

He said people should be cautious of any e-mail that asks questions about personal information.

"That is a growing and continuous way for people to engage in identify theft," he said.

Kitchens said "no legitimate corporation will send an unsolicited e-mail and ask for personal information."

He warned that some e-mail used in scams may seem "very, very realistic and sound very, very important."

For example, one e-mail that has been showing up purports to be from the Federal Deposit Insurance Corp. The message reports that the FDIC has been advised by Homeland Security Secretary Tom Ridge to suspend deposit insurance on an account belonging to the recipient of the e-mail.

The insurance is being denied "due to suspected violations for the Patriot Act (a law passed to help combat terrorism)," the e-mail says.

The recipient is asked to verify information through a Web site. The e-mail says failing to verify the information will result in a termination of the account and all records of the account history being sent to the FBI.

A local bank received this e-mail and reported it to Police Cpl. Joseph Dressler. He tried to visit the Web site cited in the e-mail but it had already been shut down.

He contacted a regional investigator for the FDIC and was told the e-mail had been traced to Poland. An electronic crimes unit was trying to locate those who were responsible, according to Dressler's report.

The same fraudulent "FDIC" message also was sent to a Leavenworth woman as well as other e-mail that caused her concern.

One e-mail purported to be from her bank and indicated her account had been blocked because it "may have been compromised by outside parties."

The woman was asked to verify her identity by visiting a Web site.

The woman apparently contacted her bank and was told not to respond to the e-mail.

Kitchens said there are other ways the Internet can be used for scams.

A Leavenworth man reported to police last month about a scam played on his son who'd tried to sell a pickup truck over the Internet.

The seller was contacted through e-mail by a man who said he lived in Paris, France. The man indicated he wanted to purchase the truck for his brother who lives in Nigeria.

The seller was sent a check for more than what he was asking for the truck. The buyer asked that the extra money be sent to his brother in Nigeria.

The check was cashed and the extra money was wired as had been agreed. The check was later returned as "no good," according to the police report.

The Leavenworth man was told his son could be held responsible for the money from the cashed check.

Kitchens said people who have something up for sell should be immediately suspicious anytime they are asked to make side arrangements. The involvement of foreign countries in such a deal can be another red flag.

"I always tell them, 'If you're not sure then don't do it,'" he said.

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Seniors are targeted for fraud and scams
February 4, 2004

That 'friendly' voice on the other end of the line may turn out to be a criminal!

Older adults are continually targeted for scams and fraudulent business practice. You may have heard of the recent scam where telemarketers contact older people pretending to be the person’s bank and say that there is a question with the older person’s bank account. The caller then asks for the older person’s bank account number.

Here’s a wise consumer strategy for people of any age - never give your bank account number to anyone, especially someone calling over the phone!

The Consumer Division of the Minnesota Attorney General’s Office provides excellent information to alert people to the dangers of consumer fraud directed at older people including telephone fraud.

Prevention continues to be the most effective way to attack the fraud problem.

One of the most important guidelines is that older people should never do business over the telephone with unfamiliar callers.

That 'friendly' voice on the other end of the line may turn out to be a criminal! Before making any decision regarding a telephone solicitation for information or to sell a product, the consumer should always ask for written material that describes the intent of the call.

Another scam that happens this time of the year is the 'prize' scam. The seemingly good news from a telephone caller that you’ve won a prize of some kind may raise our excitement, but as the Minnesota Attorney General warns, 'do not let it override your good judgment'.

Be skeptical because the prize may never be awarded or may not be worth collecting. Often before you can receive the prize, you are asked to pay some taxes.

NEVER, NEVER, NEVER accept this offer for anything!

The telephone is one of three methods that fraud “artists” use to contact potential victims. The other two methods include mail and door-to-door sales. Most frauds are a combination of these methods.

Scams of frauds can be large or small, sophisticated or simple, and originate anywhere. All fraudulent people have two things in common - they want to steal your money, and they don’t want to get caught!

Because many older people live on fixed retirement incomes, the economic consequences can be devastating. With a fixed monthly income, it becomes nearly impossible to replenish financial accounts when it is taken by a scam artist.

Therefore, it is imperative that all consumers including older people avoid becoming involved in things any financial scam including look-a-like businesses; work-at-home schemes; Nigerian schemes; lotteries not approved by the state of Minnesota; home improvement scams; bogus charities; 'you have won' calls/mail; investment frauds; medical equipment quackery; as well as vacation scams.

This time of year, Minnesotans are often ready to exit the cold for a little warmth. Unfortunately, there are also frauds when it comes to vacations.

Like any other purchase, buy from a reputable business; watch for hidden costs; avoid immediate payments; verify all necessary information; and consider using a credit card for the purchase.

If you don’t get what you paid for, you may be able to dispute the charges with the card issuer easier that getting a refund. Wise buying decisions begin with a savvy consumer!

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419 scammers start working the phones
By Jan Libbenga
Posted: 26/01/2004 at 11:51 GMT

Nigerian scammers increasingly are calling US companies on the phone, using relay phone services. These are normally free calls made by supposedly deaf people using keyboards which go to a phone company operator, who places a phone call and speaks for them. Companies such as AT&T offer these services at no cost.

The scams can take several forms, experts say. Very often, scammers order goods with fraudulently obtained credit cards and have them shipped to Africa. They tell their victims it is a rush job that must be in the hands of the air freight company within hours.

The orders have several characteristics. The scammers often type in all caps and their English is poor. They usually want fast shipment (with shipping cost no objection) and most orders are huge in size. Most favourable are commodity item that can be quickly resold.

Never trust Internet relay calls unless you actually know the person calling you, a "worn out relay operator" warns. "They will give you a sob story, they will claim they have a business, they will even pretend to be religious leaders.....they are all liars. Chances are your Nigerian friend is multi tasking and placing numerous calls at once." ®

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Check in mail could just be Internet scam
Article published Sunday, February 8, 2004
By CHRISTINA HALL
BLADE STAFF WRITER

Mike Biddle posted an ad on a Web site to sell a musical instrument.

The Anthony Wayne High School senior previously used the site for buying and selling without any problems. So he didn't expect any snafus when he received an e-mail from a man in England interested in buying his organ.

The buyer said he'd cover the shipping and that someone in the United States who handles his money would be in contact with him.

"But he never did, and one day I came home from school and there was a check in the mail. A $6,500 check for my organ that I was selling for only $800," the Waterville teen says. "I was shocked. Even with shipping, it wouldn't cost that much."

The youth called his dad, who recognized his son was being scammed. The 17-year-old then checked the Web site of the bank identified on the payment check. The logo on the site didn't match the one on the check, which turned out to be bogus.

The Biddles did the right thing, but authorities say many people don't.

Consumer advocates and law enforcement agencies say they're getting complaints about similar scams in which someone selling an item on e-Bay or other Internet sales sites are getting checks from buyers for more than the purchase price.

The buyers tell the sellers to use the money to cover the cost of the item and shipping, then return the remainder of the funds to the buyer's designated shipping agent.

What the seller doesn't know is the check is counterfeit. If they don't wait for it to clear the bank, they'll lose their item, the shipping fee, and the money they returned to the buyer.

"They're doing this with motorcycles, automobiles, campers, even candles," says Jim DeLong, special agent in charge of the Toledo FBI office.

He says FBI agents in northwest Ohio have received nearly a dozen complaints about this scam in cities from Waterville to Vermilion. Some victims were duped, others were not.

Such is the case of Mark Branham of Norwalk. Last fall, he was selling a pickup truck for about $3,500 through a vehicle sales Web site.

A man who indicated he was an overseas auto dealer stated that he was interested in the pickup, and that he would send money for the truck to a man he knew in the states to carry out the transaction.

In December, the interested buyer called Mr. Branham, who had already sold the pickup. The buyer said he had sent Mr. Branham a cashier's check for $7,500. He told Mr. Branham to cash the check, keep $1,000 for his time, and to wire the rest to the buyer's shipping agent in the states.

"I went to the bank and they said it was a good check. They said they would keep it for seven to 10 days to see if it clears, but I could get $5,000 and they would hold $2,500 for security reasons," Mr. Branham says. "I said to keep all the money to see if it clears because it didn't seem right."

It wasn't. The check was fraudulent. Mr. Branham, who has sold items online before, says he's going to stick to putting ads in newspapers or journals from now on.

Richard Eppstein, head of the Better Business Bureau office for northwest Ohio and southeast Michigan, has had plenty of similar complaints.

"I'm hammering away at this exact scam," he says. "We've had a car, a snowmobile, boats, even a funeral cemetery plot.

"It used to be that it cost you money to scam people," he notes. "Now it costs you nothing but a key stroke."

Authorities are being inundated with reports of this scam and other Internet crimes, such as bogus lotteries and stolen and counterfeit goods being sold on Web sites.

Toledo police Detective Bart Beavers, who investigates computer crimes, calls e-Bay the "21st century pawn shop." He says, "The person on the other side of the keyboard may not be the person they represent to be."

Mr. Eppstein agrees. "We are literally at the mercy of the con artist. The Internet is the Wild West. There's no law."

Mr. DeLong says authorities think the scam involving the inflated, fraudulent checks is connected with Nigerian scams that have plagued victims and authorities. He says authorities believe those running the Nigerian scams are saying they are from other countries, such as the United Kingdom, to win people's trust.

Although U.S. authorities investigate scam complaints, it's tough to get arrests and convictions in the cases, especially when overseas governments have different laws.

"Don't expect the BBB, Secret Service, State Department, or FBI to get the money back because it's gone," Mr. Eppstein says. "I've never talked to anyone who got their money back and they're in big trouble with the banks."

Mr. Biddle, who says he could have given the potential buyer of his organ thousands of dollars of his own money, has advice for sellers, especially younger ones.

"Listen to your parents because they're wise," he says. "If I hadn't and I would have followed through, I probably would have been cheated out of my money. When a 17-year-old gets a $6,500 check in the mail, they flip out a little bit."

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Be on guard against these Internet scams
IRIS TAYLOR
CONSUMER WATCH Jan 18, 2004

Be vigilant in 2004, consumers, especially you Internet users. Already, scammers are at work trying to steal your money and identity. Here are four scams to watch out for:

The scam: A Blacksburg resident called the Office of Consumer Affairs in Richmond and reported receiving a phone call from someone claiming to be from his brokerage firm assigned to handle his account.

The caller informed him of a change in the company's calling system and gave him a new contact number to use in the future. He said he would be back in touch.

The recipient grew suspicious and called his brokerage house, BB&T. As he suspected, the company had not called and does not notify clients of important changes by telephone. Rather, it informs customers of changes through its monthly newsletter or monthly statements.

Stuart Ashby, consumer affairs compliance officer, said, "what they were trying to do is gain his confidence" in order to later get pertinent information and drain his brokerage account.

The lesson: Verify that unfamiliar callers are who they say they are.

"They can verify who we are by asking us questions," said a BB&T official. If callers are legitimate, they already know your account information because it's right on their computer screen, the official said. So, don't disclose any sensitive information.

Also, "If someone calls you up with something generic, hang up," said Ashby. The caller to the Blacksburg resident never identified by name the company he supposedly was affiliated with.

He made the generic statement, "I am from your investment company." That was a tip-off.

. . . The scam: Lawrence Barry, chief division counsel of the Federal Bureau of Investigation in Richmond, said a new Nigerian scheme targets Internet chat room users.

Initially, the predators acquired stolen credit card numbers, then went online and ordered merchandise from any number of companies and had it shipped to them in Africa, he said. But, the companies caught on and stopped shipping to Africa.

Now, they go into chat rooms and take time to develop a relationship with vulnerable Internet users. Once gaining their confidence, they convince them to accept merchandise as middlemen, offering the explanation that the manufacturer does not ship to Africa.

The victim falls for it, not knowing the merchandise has been purchased using a stolen credit card.

The scammer may provide the credit-card number so the victim can pay to mail the package to Africa, he said.

He may even let the victim open up the package and keep something, say, a laptop computer, as a thank you, or he simply re-labels and re-ships the package and the scammer sends back a token gift.

The lesson: "If someone asks you to essentially be a re-shipper, avoid it, especially if they are from Africa" where this scheme originates, Barry said. Also, "people have to be very careful who they're chatting with" online.

. . . The scam: Guard your bank account or the following fake check scam may drain it. Susan Grant, a director at the National Consumer League in Washington, said consumers who sell things online are the victims.

A scammer from overseas expresses an interest in buying the relatively high-dollar item or products you are selling online - a car, computer equipment, your motorcycle, whatever.

You're elated. You strike a deal and the buyer sends a check, maybe even a cashier's check. But, the check will be for a larger amount than you agreed upon, which is where the scammer makes his money.

You contact the buyer and he says it was a mistake, just wire him the overage. Or, in a different twist on the scam, the buyer tells you from the start that someone owes him money and would you mind accepting that person's check and wiring the difference. You figure as long as you've got the money up front, it's fine.

The scam is the check you received and deposited looks real, but it's a fake.

Meanwhile, you've wired the overage from your bank account and that's real. By the time your bank ascertains that the check is no good, the scammer's gone and you're responsible for whatever money you've drawn from your account.

"The bank may not find out for weeks that the check is bad," said Grant. "The bank is going to ask for the amount you took out. That's usually thousands."

The lesson: Be wary of accepting checks from overseas buyers unless you wait until they clear, and just say no if anyone proposes to purchase your online product using a check made out for more than you are owed.

. . . The scam: If you receive an authentic-looking e-mail from your bank or another company you deal with asking for verification of your account number, pin number or automated teller machine personal identification number, watch out. It may be an old scam that popped up again this week.

This go-round, New York-based Citibank's customers are among the targets, said spokesman Mark Rodgers.

They receive e-mails, some with a Citibank logo, samples of which Citibank has put on its Web site so customers won't be duped by them.

One starts with the message, "On January 10th 2004 Citibank had to block some accounts in our system connected with money laundering." It ends urging customers to "Click Here to Login" and enter their account information.

If customers click on the link, it takes them to a bogus 'Citibank' site, said Rodgers. The intent, Citibank warns, is "to then use this information to commit fraud."

Bad grammar and atrocious spelling are hallmarks of the e-mails posted on Citibank's site, www.citibank.com. One that I read informs Citibank customers: "This e-mail was sentt by the Citbiank server to veerify your e-mail adderss." Yikes!

The lesson: "Do not respond to these," said Rodgers. "Delete them immediately. If you have any questions, call the customer service number on your bank card.

"We never ask our customers to provide information this way"

Also, always type in (or bookmark) a company's Web address instead of clicking on a link, in order to ensure it's a legitimate site.

Consumer Watch appears weekly except for the first Sunday of the month, when The Times-Dispatch publishes the Small Business column. If you have consumer concerns, call Iris Taylor at (804) 649-6349 or write to her c/o Richmond Times-Dispatch Business News Department, P.O. Box 85333, Richmond, VA 23293. Her e-mail address is itaylor@timesdispatch.com

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Co-op sidesteps credit swindle
By MIKE KALIL
Special to the Reformer
Friday, January 30, 2004 - 2:37:20 AM EST

BRATTLEBORO -- Police have issued a warning to local business owners to beware of a scheme that has already targeted some Vermont companies.

An overseas grifter, probably from Nigeria, called the Brattleboro Food Co-op Wednesday around 11 a.m. and nearly swindled the business out of $5,000 worth of vitamins, Robyn Flatley, manager of the natural living department, said.

The person used several relay systems, which are usually used by the deaf, making it impossible for the number to be traced. However, the address the person gave was in Nigeria, Flatley said.

The buyer wanted 80 bottles of 1,000-milligram vitamin E tablets, she said, and haggled the deal down to roughly $2,800. The first credit card number the person gave exceeded the limit, but the second one, a Mastercard, was accepted.

There was only one problem: Both credit cards were stolen. "My gut kept saying 'something's wrong here,'" Flatley said.

Her gut reaction was correct. She backed out of the deal soon thereafter. A Mastercard representative told her the credit card was probably stolen, she said.

When the person called back Thursday morning, she said, the business was unable to trace the call.

Detective Robert Perkins of the Brattleboro Police Department said it's nearly impossible for police to track down the numbers, because there could be five to 10 operators involved.

When the person was told the co-op had retracted the deal, Flatley said, the caller hung up.

The incident is tough to remedy because the United States has no government office in Nigeria and no jurisdiction, Perkins said. Because the perpetrators use relay systems, tracing the calls is impossible for small-town police departments.

"If (businesses) became a victim, there's really not a lot, right now, that law enforcement can do to get their money back," Perkins said.

And though some may lose large amounts of money, sometimes in the millions, Vermont police departments lack the funds to crack down.

"It's just the resources that won't allow for us to go follow these people," he said.

The U.S. Secret Service told Perkins that these frauds are perpetrated by cartels overseas, usually in Nigeria or the Philippines, he said. They typically purchase bicycle parts, magazines, toothpaste -- anything that can be resold on the black market.

No one at the Secret Service was available for comment Thursday.

The best thing for small businesses to do is be wary.

"What we have to do is warn the little stores about the scam and make sure they don't fall for it," Flatley said.

Flatley called other co-ops and small health food stores on Wednesday, she said, and found that the Hunger Mountain Co-op in Montpelier had gotten a similar phone call that morning.

The giveaway: When asked whether the purchase was for commercial or personal use, the person first said "commercial" and then said "personal," she said.

"Plus, it's so huge," she said. "It's a huge amount of money to ship to another country."

Perkins has seen scams from overseas transform over the years.

In the past, this type of fraud has appeared in the Brattleboro area through the Internet, via e-mails and instant messaging. It wasn't until recently, he said, that people have begun using telephones to get money.

Overseas phone calls requesting bank account numbers, Social Security number or any personal information should be scrutinized, Perkins said.

Also, he said, businesses should be cautious of large telephone orders that are shipped overseas and placed by first-time customers.

Mike Kalil can be reached at mkalil@reformer.com

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Check Scams Continue To Plague Area, Sheriff Issues Alert
By James B. Bartle,
Jan 7, 2004, 21:00:00

The Sullivan Police Department has received counterfeit check reports from not only private personal bank accounts but cashier's checks as well.

The problem creates serious issues for local banks and many unsuspecting customers.

This week Franklin County Sheriff Gary Toelke released a statement to the Independent News reminding local residents to be alert to another crafty scam being executed by individuals looking to take advantage of unsuspecting people.

According to Toelke, a few months ago the sheriff's office released information involving the sale of merchandise to individuals overseas.

The scam was conducted either by mail, phone, or over the Internet. Recently, the sheriff's department and the local Federal Bureau of Investigation have received an increase in the number of reports of this type.

Toelke states that the recent scam works as follows, "The victim will be someone who is wanting to sell an item, usually but not limited to, a vehicle or something of substantial value. They may have advertised it in the local news, billboard or any Internet site.

The individual will be contacted by someone usually overseas, but not limited to an overseas contact, wanting to purchase the item. The buyer will state that they will send a check, possibly a cashier's check, for the item to the subject that has the item for sale.

The buyer tells the seller that when the check is received, the seller should cash the check. The buyer states that they will have someone contact them, a second party, that will ship the item to the buyer.

The buyer requests the seller notify them immediately when the check is received, so they can notify the shipper."

Toelke stated that a check is actually sent to the seller from the buyer and the check does appear to be an authentic cashier's check and does contain a legitimate name of a bank in the United States.

"When the check is received, it is usually written for more than the seller is asking for the item," said Toelke. "The buyer then requests the seller to cash the check, keep the sale amount for themselves, and send the overage back to them, or give it to the shipper when they arrive to pick up the item.

Before the cashier's check has had time to clear the bank, the buyer will again contact the seller and state that the deal is off. They will request the seller to refund the entire amount of the check to them.

The seller later finds out that the cashier's check is not valid. If the seller has returned the money, it's too late."

Authorities state the individuals that commit these scams are usually in a hurry for you to cash the check. The bank listed on the check is not local, so it takes time for the check to reach that bank before it can be determined whether it is invalid.

"Citizens selling items over the Internet, through newspaper advertisements, or bulletin boards should be very cautious," said Toelke.

"No matter how legitimate the deal may sound, or how legitimate the method of payment may seem, it is very important that the seller wait until the check or method of payment clears the bank the check is drawn on before any transaction is made or money exchanged."

Officers report that there are several variations of this scam and, the majority, but not all of these cases, involved individuals from Nigeria. Prosecution of these subjects is very unlikely, which could leave residents responsible for the money.

"Anyone that becomes involved in a similar situation is requested to contact your local law enforcement or local FBI office," concluded Toelke.

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Nigerians running lucrative swindles; Trail leads to man in North Versailles
Sunday, January 18, 2004
By Torsten Ove, Pittsburgh Post-Gazette

A small game of deceit played out two weeks ago in North Versailles.

On Jan. 2, a United Parcel Service deliveryman showed up at a Della Drive apartment with a package addressed to Ken Smith.

A man answered the door and signed for the parcel, which contained more than $200,000 worth of cashier's checks.

But nothing was as it seemed.

The UPS man was really a U.S. postal inspector.

Ken Smith was really a Nigerian named Adebayo B. Adedimila.

And the cashier's checks? Counterfeit.

Adedimila, 28, was taken into custody and faces charges in federal court of trying to defraud 20 people in an Internet auction scheme that is increasingly popular among endlessly resourceful Nigerians.

The con is a version of the old "Nigerian 419" scam, named for Section 419 of the Nigerian penal code.

"That's their latest trick," said Jeff Eisenbeiser, head of the U.S. Secret Service in Pittsburgh.

Adedimila's arrest represents a tiny victory in the battle against Nigerian rip-off artists who have been preying on Americans for 20 years.

The schemes started in the early 1980s with letters and faxes sent to businesses. But the Internet has opened up a world of potential marks, leading to a flood of e-mail solicitations.

Among them are the familiar spam messages from West Africans who have a "VERY URGENT BUSINESS PROPOSAL" and need your help transferring millions of dollars from a secret account in Africa to yours in America.

But it's the auction scheme that is proving more lucrative.

"This is 10 times larger than that," said U.S. Postal Inspector Andrew Richards, head of the Financial Crimes Task Force of Southwestern Pennsylvania. "Instead of going for $60 million, they're going for $6,000. They're going for smaller amounts and they are being incredibly successful."

Typically, a Nigerian will contact a person trying to sell something on Internet auction sites such as eBay.

He tells the seller that he has a "friend" in the United States who owes him money. He says the friend will send the seller a cashier's check, but the check will be for a few thousand dollars more than the item costs.

The check is then shipped to the cohort in the United States -- this was Adedimila's role, federal agents say -- who sends it to the unsuspecting seller through the U.S. mail.

Finally, the buyer asks the seller to send back the extra money by Western Union wire. Some do, and never see their money again.

"Often, the sellers act as requested and wire the additional funds prior to the cashier's check being returned as counterfeit to the seller's bank," said Postal Inspector Joseph Bell in a search warrant affidavit for Adedimila's apartment. "This scheme has affected thousands of victims across the United States and resulted in the loss of millions of dollars."

Some potential victims are smart enough not to be taken.

Two men in Michigan and Georgia were potential marks for Adedimila and his partner in Lagos, Nigeria, who sometimes used the name David Nelson online.

Chris Odom, a photographer from Athens, Ga., was contacted by Nelson last month when he was trying to sell a Nikon camera for $3,750 on a professional sports photography auction site.

Nelson initially bid $4,000.

But later he sent this note, written in the kind of halting English that agents say scammers use to make themselves seem authentic:

"Hello Chris, I must tell you that payment will be in excess of $8,000. I have contacted a friend of mine owing me in USA to make the payment on my behalf to you. I have also instructed him to issue out the check for the amount of $8,000 on your name. After you might have received the check from my client you will need to deduct the cost (of the camera) and have my balance sent to me through Western Union money transfer to London, England, and through my personal assistance name. Reason is because I'm presently out of town for a professional conference in South Africa. David Nelson."

Odom thought the request was bizarre.

"I had a suspicion it was some sort of scam," he said last week.

"If you are serious, you do not need to send a money order to me for $8,000," he wrote back. "The [camera] is for $4,000 and that is well enough with shipping and insurance."

William Corne III, 19, of Saginaw, Mich., didn't fall for the scheme, either. He was selling a subwoofer on eBay for $170, but Nelson wanted to send him $5,000.

"I thought it was ridiculously strange," he said.

Nelson sent the cashier's checks anyway, and did the same for 20 others he had contacted in the U.S. and Canada.

Agents say that's typical, because while most potential marks won't wire back any money, one or two might.

"It's definitely a volume business," Eisenbeiser said.

It works in part because the cashier's checks look so good.

"I've seen them. I defy you to tell they are not real," said Barbara Petito, spokeswoman for the state attorney general's office.

But Nelson apparently didn't count on "Operation Tidalwave," an international crackdown on Nigerian fraud.

On Dec. 23, British customs agents at London's Heathrow Airport intercepted a package of checks originating from Lagos and bound for Ken Smith in North Versailles.

Inspectors found $226,000 worth of phony cashier's checks in the names of Odom, Corne and 18 others. Postal inspectors set up a delivery in which one of them would pose as a deliveryman. That's what happened Jan. 2, when Adedimila was arrested.

The U.S. attorney's office asked that he be detained as a flight risk, but a federal magistrate released him to stay with a Nigerian friend in Turtle Creek. No one there could be reached for comment.

U.S. Attorney Mary Beth Buchanan said she couldn't comment on whether investigators had arrested or were seeking Nelson or anyone else working with Adedimila.

But she said the case would be among several local prosecutions highlighted next month when her office and the Financial Crimes Task Force conducts an awareness program on 419 schemes and other cons.

"We plan to educate the public about these," she said. "We are going to focus on international fraud schemes."

Those include more traditional 419s, such as the spam messages flooding in-boxes worldwide.

The sender often claims to be an "official" or perhaps the son of some deposed leader who was murdered, imprisoned or killed in a terrible plane crash. He's the only one who knows millions of dollars were hidden away just before the tragic death. But the funds will remain frozen until they can be secretly transferred to a private account -- yours.

If you help, you're supposed to get a cut of the total. But as you get drawn in, you are eventually asked to help finance the transaction, sometimes to the point of traveling to Nigeria or a neighboring country.

The Pittsburgh Post-Gazette gets pitches like this every day, including this one last week:

"I am contacting you because of my need to deal with persons whom my family and I can lay trust and personal relationships on. Since the murder of my father, I have been subjected to all sorts of harassment and intimidation with lots of negative reports emanating from the Government and the press about my family. The present Government has also ensured that our bank accounts are frozen and all assets seized. It is in view of this that I seek your cooperation and assistance in the transfer of the sum of Thirty Million United States Dollars (US$30,000,000.00) being the very last hope for my family and I."

Lately these e-mails seem to be coming from other nations besides Nigeria, such as Liberia, Sri Lanka and even China and the United Kingdom.

Some are from copycats, but most are sent by Nigerians, either in those countries or routed through someone there, according to investigators.

"It's all Nigerian," said Charles Pascale of Harrisonburg, Va., head of the 419 Coalition, a citizens group devoted to educating the public about the schemes. "It's really a cottage industry in Nigeria. It might be said that, after football, it's the national sport of Nigeria."

No one can say for sure why.

"The Nigerian government blames the growing problem on mass unemployment, extended family systems, a get-rich-quick syndrome, and, especially, the greed of foreigners," says a Secret Service 419 advisory.

The Secret Service fields 450 complaints a day, but stopping the scammers is difficult. Agents have arrested some 250 people there in recent years, but the 419 Coalition says most of those suspects were never punished because Nigerian authorities are uncooperative.

Federal agencies have long identified specific versions of the 419. There's the bogus real estate deal, the crude oil for below-market-prices deal, even the "bill-washing" scam in which the mark travels to Nigeria, eyeballs a suitcase full of cash and is talked into paying thousands for chemicals to clean black powder off the bills.

The e-mails introducing these deals seem like obvious scams. So why do people fall for them?

"Greed is a major reason," Buchanan said. "Second, people are often more trusting than they should be. Particularly older people."

Many victims are too embarrassed to pursue a prosecution, Buchanan said, but her office has received complaints. Some victims have flown to Nigeria to try to collect, a very bad move. An American was murdered in Lagos in 1995 pursuing a 419 payoff.

"There's a perception that no one is prone to this kind of thing," Eisenbeiser said. "But a large number of individuals are enticed into believing they've been singled out to share in a windfall. The victims run the gamut. The elderly. Businessmen. Doctors. Lawyers. No one would think it could happen to them."

Torsten Ove can be reached at tove@post-gazette.com or 412-263-2620

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Woman tricked by Internet fraud
Bob Sofaly/Gazette

Bettie Brown of Lady's Island was defrauded recently when trying to sell her late 1988 Chevrolet Corsica over the Internet. Brown still has the car and, thanks to a fake cashier's check, owes a local bank $3,000.

Bettie Brown was swindled for $2,500 when she tried to sell an old car on the Internet for $500.

On Christmas Eve, after telephone and e-mail correspondence with the purported buyer, the Beaufort woman received a check for six times the asking price: $500 for the car plus $2,500 to pay a tow truck company to get the car to California.

No negotiation. No handshake.

Her bank, Wachovia on Lady's Island, allowed her to cash the check that was later determined fake. Two days later she wired the money to what she believed was a towing company. But Wachovia would soon notify her that she owed $3,000 for the fraudulent check.

"I'm not a trusting person no more," Brown said.

In the past month, at least six Beaufort residents have unwittingly pursued inquiries to participate in advanced-fee scams, which usually originate in Africa, said Secret Service Agent John Kenney of Charleston. Authorities or banks stopped these Beaufort residents before they sent money, Kenney said, and Brown is the most recent known local victim to lose money.

In September, Ann Judith Justice, 36, of Beaufort reported to the Beaufort County Sheriff's Office that she was nearly taken when she tried selling her boat on the Internet for $4,600.

She said she received e-mail from an individual claiming to be from England and interested in buying the boat. Justice received a check in the mail for twice the advertised amount with the stipulation that she mail $4,850 to a broker in Maryland who would come to Beaufort to pick up the boat and arrange to have it sent to England. But Justice was skeptical and a bank confirmed the check was fake.

"I had a real eerie feeling about the whole deal," she said. "Sometimes in the e-mails, he would talk about our car. I thought he was buying our boat."

Most people delete the e-mail, but occasional responses and rare victims are enough to keep the scam alive. A Hilton Head Island man was convinced to wire $75,000 in an Internet scam, Kenney said.

Known as "419 Fraud" after the relevant section of the Criminal Code of Nigeria, a similar scam uses unsolicited e-mail seeking a bank or business to shelter several million dollars in the United States.

The victim is asked to provide bank account information so a large deposit can be made in return for a generous reward. Instead, the bank account is emptied, Kenney said.

A recent e-mail claiming to be from the Ivory Coast states, "I know my message will come to you as a surprise. Don't worry, I was totally convinced to write you in reference of the transfer of US $20.2M to your account for onward investment (hotel industries) in your country. I am MR. Bakarri Agbosubles the son of the former chief of defence-staff Late General Moses Agbosubles of Guinea Bissau." The e-mails are usually filled with grammatical errors and poor English.

In 2002, 48,252 U.S. complaints in which people lost $54 million in Internet scams were referred to various agencies by the Internet Fraud Complaint Center, according to the center, a partnership between the FBI and National White Collar Crimes Center.

Brown, who is an office manager at Beaufort Air Conditioning, said she will struggle for many months to get out of debt.

"I live paycheck to paycheck," she said. "I just want other people to realize that it's right here at home with the Internet."

Three weeks have passed since Brown reimbursed her bank, but on Wednesday, she reported to the Sheriff's Office that another check had arrived in the mail for $4,700. Her instructions were similar to the first transaction: If she would be so kind to keep a portion of the money and send the remainder by Western Union to a location to be named in a future e-mail. The letter came from Kalamazoo, Mich., with a return address of Lebanon, Pa., she said.

"I guess they just think my bank account is just so huge that I wouldn't notice," Brown said.

Contact Glenn Maffei at 986-5531 or gmaffei@beaufortgazette.com.

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Nigerian Fraud Scheme Hits eBayers
By Ina Steiner (ina@auctionbytes.com)

Pennsylvania Attorney General Mike Fisher warned of a suspected Nigerian-based money scheme involving the use of counterfeit U.S. bank cashier's checks to buy merchandise from consumers selling goods on the Internet.

Many of the perpetrator's checks initially clear, making sellers feel more confident in completing transactions.

Two victims from Southeastern Pennsylvania reported losses of $9,800 and $12,500. A third victim from Centre County said she lost $4,200, and a fourth Pennsylvania resident from Bucks County was contacted by one of the suspects, however, the phony check did not clear.

"This particular money scheme is extremely dangerous because consumers consider cashier's checks to be the same as cash and would have no reason to doubt the check's authenticity," Fisher said. "Even worse, these counterfeit checks are impressive replicas that are difficult to spot, even by the banks that are clearing and cashing the checks."

According to investigators, the con artists target individuals selling merchandise over the Internet, specifically large-ticket items such as collector cars, motorcycles and boats.

The buyer, who is from Africa, emails the seller to express an interest in the item and states that the method of payment will be a U.S. bank cashier's check.

At the last minute, the buyer makes an excuse for sending a cashier's check that is several thousand dollars more than the price of the item being purchased.

The buyer asks the consumer to wire back the difference between the check and the purchase price after the check clears. Once the consumer's bank cashes the check, the consumer then wires the balance to the buyer in Africa.

Typically within seven to 21 days, the consumer learns from his or her bank that the check was counterfeit and that they must return the full amount to the bank.

Fisher urges consumers to be extremely skeptical of any emails from Nigeria or Africa offering to purchase items online with a U.S. bank cashier's check.

Online sellers are also urged to avoid contact with individuals asking you to send or wire money abroad. Victims of the cashier's check scam are asked to immediately contact the U.S. Secret Service at (202) 406-5850 or write to: U.S. Secret Service, Financial Crimes Division, 950 H Street, NW, Washington, D.C. 20223. Complaints can also be filed electronically by visiting
: http://www.secretservice.gov/contact_fcd.shtml

You can also get more information about Internet fraud at AuctionBytes Fraud Resource Page: http://www.auctionbytes.com/cab/pages/fraud

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Victims of online scams hit hard... More consumers fall prey to con artists

By TERRI SANGINITI
Staff reporter
25 MAY 2003
From The News Journal, Delaware US:

Jim and Kay Perry said they never had any problems buying or selling cars over the Internet.

So when Jim Perry put his brother's 1938 Packard up for sale in January, he had no reason to be suspicious when a buyer who said he was from another country contacted him to buy the classic car for $19,500.

What the couple from Hartly did not realize was that they had just been snared in an international scam that costs American consumers over $100 million a year, according to the U.S. Secret Service, which enforces federal laws related to counterfeiting and other financial crimes.

And, by depositing the buyer's $45,000 cashier's check into their Dover Federal Credit Union account, the Perrys took the first step toward losing the money they had been saving for 17-year-old daughter's college education. The deposit also sparked a battle between the Perrys and the credit union over who is liable for their financial loss.

Secret Service officials say more people are falling for the scam. The con artists typically use fake cashier's checks to purchase items that individuals are selling online. The scammers overpay for the goods and later ask that the difference be returned to them before the victim or bank realizes the cashier's check is counterfeit.

Kay Perry said when the $45,000 check arrived Jan. 15 by Federal Express, she immediately e-mailed the agent for the buyer, who identified himself as Samuel John, that he sent too much money.

John telephoned the Perrys. Speaking in a thick accent that Kay Perry said was hard to decipher, he apologized repeatedly for the mistake by his client's secretary, she said.

John followed up with an e-mail to the Perrys, saying there was a "simple solution" to the problem, which was to have the over-payment wired back to his client. On Jan. 18, Kay Perry said, he called again to report his client had not yet received the money.

The couple wired the $24,460 in overpayment to the buyer in the United Arab Emirates. Only later did they they learn the cashier's check was worthless. The 1938 Packard never changed hands.

Officials said the counterfeit checks being used are well- crafted fakes. It is difficult to confirm their authenticity without calling the banks whose names are on the checks. Both certified checks and cashier's checks have been used.

Federal Reserve rules require banks to make money from cashier's, certified or teller's checks available within one to five days of deposit. In some cases, that is less time than it takes for the check to be cleared in the financial system, a process in which the check is routed back to the bank of origin, where the check can be verified and an account can be debited. That leaves time for a victim to wire money to a scammer before anyone realizes the check is worthless.

Banking officials say depositers need to find out whether a cashier's check cleared the issuing bank before they use the money.

"It's important to not only ask whether the money is available, but also whether the check has cleared," said David Barr, a Federal Deposit Insurance Corp. spokesman.

The FDIC also recommends that Internet sellers verify a buyer's name, address and home phone number, and make sure that the check is drawn on a local bank, or one with a local branch.

U.S. Secret Service Agent Robert Sica, who is in charge of the agency's Wilmington office, said the current scam is a new twist on the Nigerian 419 money transferring fraud, named for the section of the Nigerian penal code on fraud.

In that scam, individuals were contacted by unsolicited faxes, e-mails or letters promising a one-third cut of $60 million if they provide a U.S. bank account number where the money could be deposited. The victim, who thinks he has been singled out for a lucrative proposition, typically deposits $25,000 into a new account as instructed. While he's waiting for his cut, the scam artist withdraws the money the victim deposited using the account information provided.

In this new scheme, which surfaced late last year, the con artists are posing as potential buyers of high-price merchandise advertised for sale over the Internet.

Sica would not release the number of Delaware residents scammed in this sting. He would not discuss the Perrys' case.

The money consumers send to these scam artists goes through multiple overseas bank accounts until it ends up in Nigeria, where the money is used to finance heroin smuggling, Sica said. The Secret Service has set up an office in Lagos, Nigeria, to work with law enforcement there to combat the problem. But arrests are infrequent and victims are rarely reimbursed for their losses, he said.

"The scope is significant," Sica said. "The problem is following the money." Lori Sitler, spokeswoman for the state Attorney General's Office, said the office has received 10 complaints in the last eight months.

Sites such as The Classic Car-Nection, where the Perrys listed their vehicle, are posting warnings in bold red text to alert sellers to the scam.

"I am getting extremely upset that so many scams are being perpetrated on innocent enthusiasts of old cars," said Norm Nicholson, who operates the site. "My site is intended to be a big help, not a means of getting ripped off."

Nightmare continues

The state Attorney General's Office issued a consumer alert about the scam March 24. Two days later, the FDIC alerted financial institutions about it.

But the warnings came too late for the Perrys.

Kay Perry said when they deposited the $45,000 cashier's check Jan. 16 at Dover Federal Credit Union, the teller told them they could conduct business on the check that day.

The credit union would not comment on what the teller told the Perrys, or any other details of the case. The teller, who could not be reached for comment, no longer works at the credit union.

The next day, Jim Perry wired the $24,460 overpayment to Peter O. Akande in an account in the United Arab Emirates.

It wasn't until Perry tried to use his MAC card on Jan. 23 that he learned there were insufficient funds in the couple's account. The Perrys said the credit union had frozen their assets Jan. 22 to cover the counterfeit check.

Credit union officials have demanded the Perrys repay about $17,000 immediately or they say will take legal action, the Perrys said. The amount represents the difference between what the Perrys had in their account and the amount wired to the buyer.

The Perrys contend it is the credit union that should be held liable for the loss.

Kay Perry said the cashier's check, which bore the name of National City Bank of Indiana, was improperly deposited by the teller as a cash transaction, as is noted on the Perrys' bank receipt, rather than as a check.

The Perrys claim their check deposit should have had a hold on it for at least five business days, a procedure they claim is the credit union's policy for handling checks.

A booklet on account information for Dover Federal members says that money from cashier's checks will be made available on the first business day after deposit. However, the booklet, provided to The News Journal by the Perrys, also notes "safeguard exceptions" that may delay availability of some deposits, including a deposit of checks totaling more than $5,000.

"They will generally be available no later than the 11th business day after the day of your deposit," the booklet says.

The credit union would not comment on its policies.

The Perrys contend the "safeguard" hold on the funds would have prevented them from wiring the money. They said they were never notified by the credit union that the $45,000 in cash was not in their account.

Holly M. Whitney, an attorney for the Perrys, sent credit union president David Clendaniel a letter Jan. 31 contending the Perrys should be liable for a bounced-check fee only.

Credit union attorney David T. Pryor responded by letter on Feb. 6, saying it was irrelevant whether the check was processed by the teller as cash or a check.

"As sympathetic as the Credit Union may be to the Perrys' predicament, the Perrys as the indorser of the check are legally liable for its dishonor," Pryor wrote.

In a written statement May 12 to The News Journal, credit union president Clendaniel said the credit union "has always treated our members' financial information with the highest confidentiality; therefore, out of respect for our members' privacy, we are not able to comment on specific situations."

Clendaniel said the credit union "has always complied with applicable state and federal regulations in the processing of negotiable instruments, and will continue to do so."

The credit union said it is taking additional steps to ensure members are aware of the scams.

The Perrys have filed a complaint with the National Credit Union Administration, an independent federal agency that charters and supervises federal credit unions. The credit union administration, in turn, asked Dover Federal Credit Union to investigate the complaint the Perrys lodged against them.

A spokesman for Rep. Mike Castle, R-Del., said the congressman is not satisfied with the credit union administration's response. Castle on May 15 sent a letter to the credit union administration asking the organization to tell him what steps it planned to take to resolve the dispute between the Perrys and the credit union.

'The luckier ones'

Shawn and Jeff Mosch, of Bloomington, Minn., who said they lost $7,200 in the same car scam as the Perrys, posted their story on the Internet. In the Mosches' case, the agreed- upon price for the car was $1,600; the purported buyer sent a check for $8,800, and convinced the Mosches to send back the difference.

The Mosches disputed their liability for the money deducted from their account. Eventually, their bank settled out of court.

"We're one of the luckier ones," Shawn Mosch said.

"Everybody thinks that banks check these certified checks before they deposit them," she said. "The bank told me that I should have called the bank the check was issued from to verify it."

Officials agreed that public awareness is the key to combating scams.

"If you present a check for a large amount, I would speak to a banker to verify there are existing funds in the account so if there is a problem it can be addressed right there," Sica said.

Kay Perry said she will keep on fighting to get her money back.

"We can't afford not to," she said.

PROTECT YOURSELF

Scam Victims United cautions that if you are selling online, be skeptical of offers:

From overseas parties you do not know

To make a purchase by cashier's check (there is no guarantee that a cashier's check is authentic unless the drawn-upon bank verifies that the funds are available)

From buyers sending more than the price of an item

From buyers who are more concerned about return of the overpayment than shipment arrangements

If you are victimized, notify the online site involved to post a warning to other sellers about the scam.

If you have any questions about a suspicious cashier's check, contact the U.S. Secret Service in Wilmington at 573-6188.

CASHIER'S CHECK

A cashier's check is one that is drawn by a bank on itself, authorizing payment to the person or entity named on the check.

A certified check is one that is stamped with the paying bank's certification that the signature on the check is genuine and there are enough funds in the account to cover the check. Once certified, like a cashier's check, it becomes an obligation of the bank and is paid out of bank funds.

Officials said the con artists' counterfeit checks appear to be authentic issues of the banks named on the supposedly official checks.

FOR MORE INFORMATION

The Federal Trade Commission offers helpful consumer-protection information in the online brochure: Online Scams: Potholes on the Information Superhighway. The FTC also recommends the following resources:

The National Fraud Information Center maintains a toll-free Consumer Assistance Service, 1-800-876-7060, to provide information about telephone or mail solicitations and online scams. They also tell consumers how and where to report fraud and how to file complaints.

The Federal Trade Commission publishes free brochures that explain fraudulent sales practices and how you can avoid them. For a complete list of publications, write for Best Sellers, Public Reference, Federal Trade Commission, Washington, DC 20580; (202) 326-2222; TDD (202) 326-2502.

Reach Terri Sanginiti at 324-2771 or mailto:tsanginiti@delawareonline.com

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Five Nigerians charged in $242 million '419' fraud trial
Friday, February 6, 2004 Posted: 4:54 PM EST (2154 GMT)

ABUJA, Nigeria (AP) -- Nigerian prosecutors leveled 86 counts of fraud and conspiracy against five people Thursday for allegedly swindling a Brazilian bank of $242 million, in the biggest crackdown yet on the West African nation's advance-fee fraud or "419" scams.

The five are accused of luring an employee of Sao Paulo's Banco Noroeste into siphoning off the funds from his employer, persuading him he could land a share in a lucrative Nigerian construction contract if he just paid enough handling fees up front.

The five appeared in court in Nigeria's capital, Abuja, in handcuffs to hear the charges Thursday. All the suspects, including housewife Amaka Anajemba, lawyer Obum Osakwe, and businessman Emmanuel Nwude -- described by prosecutors as "a major shareholder" in a leading Nigerian bank -- pleaded innocent.

Penalties for each of the counts range between seven and 10 years.

Four Nigerian companies -- Ocean Marketing, Fynbaz, Emrus, and the African Shelter Bureau -- also accused of involvement in the alleged crime were not represented in court.

Presiding Judge Lawal Gumi entered innocent pleas on behalf of the companies and postponed proceedings until Wednesday, when he will consider requests for bond.

There was mild drama in court when suspect Nzeribe Okoli, while making his plea, declared he would make "shocking revelations" during the trial.

"There are so many hidden things which Nigerians should know," Okoli said before he was interrupted by the judge, who told him to restrict his answers to the questions he was asked.

Nigeria's anti-fraud body, the Economic and Financial Crimes Commission, alleges in court papers the suspects told the Brazilian bank worker he would receive $13.4 million from an $187 million Nigerian airport contract -- if he invested money up front.

The bank worker allegedly dug illegally into his bank's funds, transferring the $242 million -- in segments as high as $4.75 million at a time -- to accounts around the world designated by the suspects, the papers showed.

Nigeria has gained global notoriety as a base for such advance-fee fraud, known as '419' schemes after the section of the country's criminal code that prohibits fraud.

In most of the cases, scam artists proposition victims with e-mails claiming to have millions of dollars from inflated contracts, the estates of dead dictators, or other illicit proceeds, and seeking help to transfer the money abroad.

The victims are then made to pay never-ending "service fees" and other charges -- the object of the scams.

Nuhu Ribadu, who heads the commission set up by President Olusegun Obasanjo's government in December 2002 to combat sophisticated fraud and money-laundering rings, told a news conference on Wednesday he intended to use this case to prove that "no one is above the law."

The case was also the subject of criminal investigations in Switzerland, Britain, the United States and Brazil, Ribadu said.

SCAMS KEEP LOCAL POLICE BUSY
By Leann Eckroth, Staff Writer
Willieston Herald

Scam and con scheme complaints are inundating the Williston Police Department. Fraud is just a ring or e-mail away, warn local authorities.

"It's becoming an epidemic," said Williston Police Det. Tom Ladwig. "We used to get about half a dozen complaints a year. Now, we're getting calls weekly."

The elderly are often vulnerable targets of such schemes. Yet, just about anybody can be taken.

A common swindle being attempted is the so-called "Canadian lottery" phone call.

"One woman sent $9,000 to collect," said Det. Jeff Fender.

"We've had two or three reports of this," Ladwig noted.

"She did send the money. In both cases, the family got the money orders stopped. They were lucky to get it stopped," Fender said.

"If you are notified you have won the lottery, you won't have to pay anything," Ladwig stressed. He said the Internal Revenue Service will take tax money upfront or the individual would pay taxes later.

This scam originates on the telephone. One victim was even told her deceased husband had won the lottery and the only way to collect was to send cash.

Seniors are not the only ones susceptible to a scam. Some con artists take their time, as one Williston businessman discovered.

He and what he thought was a sincere female friend chatted on the Internet for a period of six months. When "she" notified him "she" was working overseas and needed him to cash a check and send to a Nigeria address, the man complied. He cashed the $3,500 cashier check and passed it on via Western Union.

"Within a week, he discovered he owed the local bank $3,500 because the check was fraudulent," Fender said. To send that large amount of money costs the victim another $200.

Fender said it is easy for con artists to misrepresent themselves over the Internet. "They can send anyone's picture. You might think you're e-mailing a 29-year-old blonde and you're talking to a 50-year-old, 300 pound man from Nigeria. They could have several of these scams going at one time."

Those behind the cons want money orders and cashier checks. "They want their money guaranteed," Fender explained.

"If someone sends you a check, hang onto to it until you know the check is good, or have your bank check," Ladwig said.

Be particularly wary if the caller or your person of contact attempts to rush you, saying the payment must be made now.

"Beware, if it's coming out of Nigeria," said Williston Police Det. Mark Hanson.

Ladwig said there is likely no way to be compensated for lost money because the United States has no treaties with Nigeria, and scams are a frequent money maker there.

An even more devious Internet scheme involves somebody selling a large-ticket item like a vehicle through ebay. An unsuspecting seller can easily get taken when a supposed buyer overbids, sends a phony check and picks the car up immediately. The check is found to be no good, the seller is out thousands of dollars and the item up for sale disappears with it.

Confirm a check is valid before cashing it in, advised Ladwig.

Hanson said a new scheme involves using local residents to send merchandise off to Nigeria.

"These items are purchased through fraudulently obtained or stolen credit cards," Hanson said. "They want the items shipped to a U.S. address and then want it shipped on to Nigeria." There is the possibility the unsuspecting victim could be charged with possession of stolen property.

Fender said not to make any major transactions with somebody who contacts you that you do not know.

"Be highly suspicious of someone who wants to do business with you on a chat room on the Internet," Ladwig said. "A legitimate business does not do business on a chat room ... Do not give personal information on the chat room on the Internet."

He said the Internet is a good place to order something when you initiate the call. However, the risk comes when doing business with unsolicited e-mails with a person you met on the chat room.

"If it sounds too good to be true, it probably is," Hanson said.

Ladwig said there has been a stream of angry callers who are frustrated about being taken. "There is not much we can do. The perpetrators can be from anywhere in the world ... Federal agencies are swamped with this."

The best prevention is common sense. "Have a family member check it out, before you send any money," Ladwig advised.

If you feel you have been a victim of one of these schemes or been contacted and want to confirm the legitimacy of an offer, call the Consumer Fraud Division of North Dakota Attorney General's Office at 1-800-472-2600.

Area residents also have been affected by a recent Social Security fraud scheme. "All we heard was, they asked somebody from Williston to come to a Minot apartment to discuss an elderly person's retirement," Fender said. "We have a Social Security office in Williston."

According to an Associated Press report, perpetrators of this fraud are using people posing as agency employees in an effort to obtain personal information. One caller claimed that due to power outages, they needed to verify the recipient's information. Social Security on-hold recordings also were used.

People who may have been victims of this scheme or who were contacted, are asked to call a hotline at 1-800-269-0271.

Next Chapter
Introduction to the Credit Card Scam