Also known as "advance fee fraud" and the "419 fraud."
This specific type of scam is generally referred to as the Nigerian scam because of its prevalence in the region, particularly during the 1990s. There is also a section of the Nigerian criminal code, Section 419, that makes this type of fraud illegal. However, this scam is not limited to Nigeria and is also perpetrated by many organizations in many different countries around the world. The origins of this scam are widely debated with some suggesting it started in Nigeria during the 1970s, while others suggest its origins go back hundreds of years to other confidence scams such as the Spanish prisoner scam.
The scammers hope that the commission offered will be enticing enough to compel the recipient to take the risk of sending thousands of dollars to a stranger. The reasons given for the transfer can differ from a government freezing an account to the existence of an account with no beneficial owner. When it comes to this type of request, however, it is important to remember that if anything sounds too good to be true - it usually is.
Warnings signs of a Nigerian scam include a U.S. currency account in a foreign country, odd spelling and language in the body of the email and a promise of substantial compensation for little effort.
Investment dictionary. Academic. 2012.