Advance Fee Scams Overview
An "Advance-Fee Scam" is a fraudulent scheme where a scammer asks their victim to pay money upfront in order to receive something of greater value in the future.
There are a vast number of different advance-fee scams that circulate through the internet, so many in fact, that it's impossible to list them all here. However, most of the advance-fee scams follow a similar approach and whatever the "promised" reward is, will never be delivered or provided.
How Advance Fee Scams Operate
As mentioned above, advance-fee scams are constantly changing and scammers are incredibly creative in devising new ways to trick their victims. Here are some of the more common examples of advance-fee scams:
Investment Opportunities: The victim is promised a high return on an investment, but they need to pay fees or taxes upfront.
Money Transfers: A victim is contacted by a scammer claiming to be from a foreign country who needs their help transferring a large sum of money. In return, the victim will receive a percentage.
Job Scams: A victim is offered a job that requires them to pay for training materials, equipment, or a background check. The scammer promises that their "company" will reimburse the victim, usually through a check via postal mail or text message.
Online Purchases: A victim buys an item online, but the scammer asks for additional fees or requests payment through unusual methods.
Customs Hold: A victim will be contacted by a scammer who states that a recent package scheduled for delivery is being held by their Customs Office. The scammer tells their victim that they must pay a fee or tax to have the package released.
The commonality between all of these different methods is the upfront payment. Scammers have also been known to ask for small amounts initially, then gradually increase their demands.
What to Do if You're Targeted
Block The Scammer: Cut off all communication with the scammer.
Ignore Future Contact: Scammers often try to re-establish communication with their victims. Do not respond.
Dispute or Charge-back: If you believe you've been a recent victim of an advance-fee scam, contact your bank directly and dispute the charge. Ignore any person, other than your bank, who claims they can recover your funds. This is a secondary scam called a "Recovery Scam" which you can read about here: Recovery Scams
Do Not Deposit The Check: If a scammer has provided you with a check via postal mail, or text message, do not deposit the check. Often times, these checks are fraudulent and after several weeks, or even months, the check will "bounce" and your bank will remove the funds from your account.
Preventing Advance Fee Scams
The best course of action is to familiarize yourself with the information above.
Trust your instincts; if something "feels off" about a person and you're becoming increasingly suspicious, it's probably a good indication that you're talking to a scammer.
