Advance fee fraud
In this type of investment fraud, the investor is asked for payment up front before the deal can go through (Advance fee). The upfront payment may be described as a fee, tax, commission, or incidental expense with a promise that the money paid in advance will be repaid later. In some instances, advance fee schemes usually target investors who already purchased underperforming securities and offer to sell those securities if an “advance fee” is paid.
It is common in advance free fraud that fraud stars try to mislead and fool the investing public by using legitimate looking websites, email addresses and even official letter heads and seals.
Investors are cautioned to be on look out on advance fee investment offers that comes from legitimate looking websites and email. Eg . gov.za. and many other, the investing public need to be vigilant before responding to any advance fees investment offers.
A typical example is the so-called Nigerian advance fee fraud or 419, named after a Nigerian Legislation that regulates advance fees frauds, normally someone pretending to be a Nigerian official or businessperson promises high profits for help moving money out of Nigeria and an advance is requested for any other legitimate sounding reason.
This type of scams has also become very common in South Africa and the public need to be very vigilant in responding to email investment offers.Add to favorite