Nigerian-419 Scams Involving Fake Checks and Fraudulent Wire Transfers
Although Nigerian-419 scams are relatively old, believed to have originated in the early 1980's when the oil-based Nigerian economy declined, they are nonetheless prevalent today. The reduced cost of operating these scams due to the ease of "email blasts," combined with a tough economic climate, has made these scams popular. Unfortunately, the unsuspecting target often becomes a victim and often times lose money. The victim may even face a criminal prosecution, being charged with larceny.
Fraudulent checks and/or money orders are commonplace in advance-fee scams. A victim is often solicited by email and receives a check or money order in the mail once they agree to the terms outlined in the email received. This scam works in the U.S. because when an account holder presents a check to a bank for deposit, or to cash, the bank is required to make the funds available to the account holder within one to five business days, even if the bank cannot verify the check is "good." The bank eventually determines the check to be a forgery, and if there is not enough money in the account holder's account to cover the bad check, the bank often brings a Civil Lawsuit against the victim to recover the money. Even worse for the victim of the scam, the bank often contacts the police and the victim is often arrested and faces criminal charges.
Fraudulent wire transfers via Western Union are also sometimes used in these financial scams. Internationally sent wire transfers cannot be cancelled or reversed and the person receiving the money can almost never be identified or found. This is why a large majority of these scams involve making payment via wire transfer. Wire transfer is also fast, so by the time the victim realizes they have been duped, it is too late.