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	'''Advance fee fraud''' is a type of fraud in which a victim is promised money, credit, goods, work, inheritance, investment returns, or another benefit, but is first asked to pay a fee. After the payment is made, the promised benefit does not arrive, or the fraudster asks for more payments.

Advance Fee Fraud, also known as 419 scams or Nigerian Prince scams, is a prevalent form of fraud that involves tricking individuals into paying upfront fees or providing financial assistance in exchange for promised rewards. This wiki page provides an overview of advance fee fraud, its characteristics, examples, and measures individuals can take to protect themselves from falling victim to such scams.
	The fee may be described as tax, insurance, customs duty, administration, legal costs, verification, courier charges, a deposit, or an account release fee. The wording changes, but the structure is the same: the victim pays first and receives nothing genuine in return.

== Characteristics of Advance Fee Fraud ==
Advance fee fraud schemes share several common characteristics:
	== Common Forms ==
	Advance fee fraud includes:

# Promised Rewards: Scammers entice victims with promises of significant financial gain, such as large sums of money, inheritances, or business opportunities. These rewards are typically portrayed as lucrative and easily attainable.
# Upfront Payments: Scammers request victims to make upfront payments or provide financial assistance to cover various fees, such as processing fees, taxes, legal expenses, or bribes. These payments are presented as necessary prerequisites to receive the promised rewards.
# Urgency and Secrecy: Scammers often create a sense of urgency and secrecy to pressure victims into acting quickly without seeking advice or verifying the legitimacy of the offer. They may claim that time is limited, or the opportunity will be lost if the victim does not comply promptly.
# Misrepresentation and Deception: Scammers use elaborate stories and false identities to gain victims' trust. They may pose as wealthy individuals, government officials, or beneficiaries of large fortunes, exploiting victims' desire for financial gain or their willingness to help those in need.
	* Loan fee fraud.
	* Fake inheritance or lottery claims.
	* Fake job and work-from-home offers.
	* Fake rental deposits.
	* Recovery scams after earlier fraud.
	* Fake grants or compensation.
	* Romance fraud involving travel, medical, customs, or emergency fees.
	* Investment or crypto withdrawals blocked until a fee is paid.

== Examples of Advance Fee Fraud ==
Advance fee fraud schemes manifest in various forms, targeting individuals through different channels. Some common examples include:
	The scheme can be simple or highly detailed. Some fraudsters use fake documents, copied company names, professional-looking emails, and staged phone calls from people pretending to be lawyers, banks, couriers, or officials.

* Inheritance Scams: Scammers claim that the victim is entitled to a substantial inheritance from a distant or deceased relative. They request payment of legal fees or processing expenses to facilitate the release of the inheritance funds.
* Lottery and Sweepstakes Scams: Scammers inform victims that they have won a lottery or sweepstakes prize but must pay fees or taxes upfront to claim the winnings. The promised rewards are fictitious, and victims who make the payments never receive any prize.
* Business Opportunity Scams: Scammers pose as entrepreneurs or business representatives offering lucrative investment opportunities. They convince victims to invest in fictitious projects, promising high returns. However, the investments never materialize, resulting in financial losses.
* Romance Scams: Scammers create fake online personas and initiate romantic relationships with unsuspecting individuals. They establish emotional connections and then fabricate stories about financial hardships or emergency situations, seeking money from their victims under the guise of trust and love.
	== Loan Fee Fraud ==
	Loan fee fraud is a common financial version. The FCA describes it as a scam where a person is conned into paying a fee for a loan. Fraudsters may ask for an upfront payment as a deposit, administrative fee, insurance, or broker fee. Once the fee is paid, the loan is never provided.

== Protecting Yourself ==
To protect oneself from falling victim to advance fee fraud, individuals can take the following precautions:
	Genuine authorised firms may sometimes charge fees, but there are rules about what information they must provide. A request for fast payment by bank transfer, voucher, or cryptoasset is a strong warning sign.

# Exercise Caution: Be sceptical of unsolicited messages or offers that seem too good to be true. Remember that genuine lotteries, inheritances, or business opportunities do not require upfront payments.
# Verify Legitimacy: Independently verify the identity and authenticity of the individuals or organizations involved. Conduct research, seek advice from trusted sources, and avoid making hasty decisions based on limited information.
# Guard Personal Information: Refrain from sharing sensitive personal or financial information with unknown individuals or entities. Be cautious of requests for confidential details, as scammers can use them for identity theft or further fraudulent activities.
# Be Wary of Urgency and Secrecy: Exercise caution when confronted with requests for immediate action or demands for secrecy. Scammers often employ such tactics to prevent victims from seeking advice or conducting thorough investigations.
# Report Scams: If you believe you have encountered an advance fee fraud scam, report the incident to your local law enforcement authorities or relevant consumer protection agencies. This helps raise awareness and enables authorities to take appropriate action.
	== Pressure and Escalation ==
	Advance fee fraud often escalates. After the first payment, the fraudster invents a new problem requiring another fee. Each payment is framed as the final step before the victim receives the promised benefit.

== See Also ==
	The victim may continue paying because they want to recover what they have already lost. This is known as sunk cost pressure and is a common part of the fraud.

* [[Scamming Techniques]]
* [[Phishing]]
	== Practical Examples ==
	=== Fake Loan ===
	A person applies for a loan online and is contacted by a fake lender. They are told to pay a £150 insurance fee before release. After payment, the lender asks for a second fee and no loan is paid.

	=== Fake Inheritance ===
	An email claims the recipient is entitled to an inheritance abroad. The sender asks for legal and courier fees. The inheritance does not exist.

	=== Crypto Withdrawal Fee ===
	A fake trading site shows a profit but says the victim must pay tax before withdrawal. The displayed balance is part of the deception.

	=== Recovery Scam ===
	A previous fraud victim is told their money has been recovered but must pay a release fee. That can be a second advance fee fraud.

	== Reporting ==
	Fraud can be reported to Report Fraud in England, Wales, and Northern Ireland. In Scotland, reports should be made through Police Scotland. If bank details or payments have been shared, the victim should contact their bank as soon as possible.

	== See Also ==
	* [[Investment Scams]]
* [[Romance Scams]]	* [[Romance Scams]]
	* [[Phishing]]
	* [[Technical Support Scam]]

	== References ==
	* [https://www.fca.org.uk/consumers/loan-fee-fraud Financial Conduct Authority: Loan fee fraud]
	* [https://www.fca.org.uk/consumers/protect-yourself-scams Financial Conduct Authority: Protect yourself from scams]
	* [https://www.reportfraud.police.uk/ Report Fraud]
	* [https://www.gov.uk/report-suspicious-emails-websites-phishing GOV.UK: Avoid and report internet scams and phishing]

	[[Category:Fraud]]