₦airaland Forum

DIMENSIONS OF FRAUD IN NIGERIA (INTROUCTION)
BY
AKOBI EMMANUEL EBENYIN HND, BSc Econs, PGD Crim, Msc Crim. Fnsis.

INTRODUCTION
Fraud is as old as the history of mankind, in the biblical time as recorded in the book of Gen27:5-46 Jacob fraudulently disguised and present himself as Esau and thus, received blessings meant for Esau from Isaac.
In Ancient Egypt, scribes were assigned to the monitoring of the pharaohs’ incoming and outgoing grain and gold inventories so as to prevent fraud and theft.
In Greek civilization, Aristotle reports on the fraud surrounding the enactment of the Seisachtheia, or Solon’s shaking-off of burdens in the 6th century BC, which released the Greeks from slavery for debts.
In Roman times, Cicero’s Verrine Orations attest to the multiple thefts and the fraudulent collection of tax proceeds by Verres, the Governor of Sicily.
It has constantly and continually persists and resists eradication. Thus, become common in our society today; exist in different forms using varying tactics/ modus operandi and affects private enterprises as well as public entities.
In countries most affected by fraud, the destabilizing impact on society constitutes a real threat to their security and sovereignty. The loss of superpower benefactors, unstable commodity prices and rising domestic and foreign debt make hard currency and profits connected with organized crime almost irresistible, especially in marginalized African countries (Snyman 2001:61).
The increased ability of criminal organizations to operate internationally is a potential danger for social and economic order in every country. The huge potential profits to be gained from such organized crime encourage criminals, who are already involved in the less serious crimes, to extend their activities to organized crimes such as fraud, corruption, bribery, forgery, misrepresentation and money laundering on a national and international scale. Men armed with guns, or those equipped with pry bars to open doors and windows, do collectively less harm to a country’s economy than smooth talkers (found among both sexes) who manipulate companies’ books, offer unfounded securities, commit forgery, organize credit cards schemes, take bribes here and there, or induce the unfortunate and helpless to forego proper medical aid for quackery, as well as attempt other cute tricks to separate the unsuspecting and trusting citizens from their property. Armed robbers or those who break and enter doors and windows, do collectively less harm to a country’s economy than those who are able to manipulate others by their persuasive powers, manipulate financial statements of companies, offer unfounded securities, commit forgery, organize credit card schemes, accept bribes or persuade the helpless and unfortunate to forego proper medical aid for quackery. The total losses experienced each year due to fraud operations are virtually impossible to calculate accurately. This type of crime, from a policing perspective, is detectable rather than preventable; even a large increase in the number of patrols, or a separate detective division would have negligible effect (Glick, Newson & Graves 1974:4).
The fraud problem continues to plague organizations and stakeholders around the world.
The Association of Certified Fraud Examiners (ACFE 2006) estimates that total annual fraud losses in the U.S. exceed $650 billion and that fraud costs organizations five percent of their annual revenue.
1.1.2 OBJECTIVES
The general objective of this paper is to extrapolate different categories of fraud as well as modus operandi of the fraudsters.
1.2.1 ADVACE FEE FRUD
Advance Fee Fraud is therefore defined as an upfront payment, by a victim to a fraudster, to allow him to take part in a much larger financial transaction, which he believes will either bring him profit or will result in credit being extended to him. In this case, the victim is asked to pay an advanced fee of some sort such as “transfer tax”, “performance bond” or “money to buy chemicals”. If the victim pays the advanced fee, there are often many “complications” which require even more advance payments, until the victim either quits, or runs out of funds. It is a crime that involves misrepresentation (as described above), corruption and bribery, forgery and money laundering, extortion, kidnappings and even murder of the victim at some stage.
Fraud in general and Advance Fee Fraud in particular is said to be a crime where the primary motivation is greed. The AFF fraudsters prey upon human vanity, fantasy, loneliness, insecurity, and fear. According to Bohlen and Kerr (Friedrichs 2004:178) it is usually, during hard economic times, when people are desperate for money or savings that get-rich-quick schemes tend to flourish.
These criminal groups, also known as the Nigerian Crime Enterprises (NCEs), are accustomed to executing transnational criminal activities, including fraud scams directed to most countries around the globe. It has become a major business in recent times and has generated very large profits for those who are successful with it.
It must be noted that AFF confidence scams are only limited by the perpetrator’s imagination. However, their proposals share a common thread. The proposals are often unsolicited, emphasize the urgency and confidentiality of the deal, and require the victim to pay various government and legal fees and taxes before receiving what turns out to be non-existent money. New variations of these scams are being developed all the time but the most common forms of these fraudulent business proposals fall into these main categories:
Transfer of funds from over-invoiced contracts
Contract fraud (C.O.D of goods and services)
Conversion of hard currency (black-money & money cleaning )
Sale of crude oil below market prices.
Purchase of real estate.
Disbursement of money from wills (benefactor of a will).
Held for ransom / Kidnappings and murder. In the nutshell, advance fee fraud requires you to hand over money upfront in return for a larger sum. Of the common example is the Nigerian 419 scam. Here you will receive an email from what appears to be businessmen or officials from Nigeria or another African country offering to transfer large sums of money into your bank account to get it out of the country. You will be asked to keep large chunk of this cash provided you pay a fee first. Victims comply end up seen nothing in returns.
1.3.0 OCCUPATIONAL FRAUD
Occupational fraud is subdivided into:
(a)Financial statement fraud
(b)Corruption
(c)Misappropriation of Assets
1.3.1 Financial statement fraud
This refers to an intentional or reckless conduct, whether by act or omission, that results in materially misleading financial statements.
It involves misstating the financial condition of an entity by intentionally misstating the financial details with the intent to deceive end users.
Financial statements can be falsified to:
Deceive investors and creditors
Cause a company’s stock price to rise
Meet cash flow needs
Hide company losses and problems

Financial statements can be misstated as a result of intentional efforts to deceive or as a result of undetected asset misappropriations that are so large that they cause misstatement.
1.3.2 Corruption:
Corruption involves the wrongful use of a position, contrary to the responsibilities of that position, to procure a benefit.
􀂄Examples include kickback schemes and conflict of interest schemes.
1.3.3 Misappropriation of assets
This involves theft, embezzlement, or misuse of company assets for personal gain.
It includes both the theft of company assets, such as cash or inventory, and the misuse of company assets, such as using a company car for a personal trip. Asset misappropriation schemes to be discussed here are: Cash schemes, Accounts receivable schemes, inventory and fixed asset schemes.

Cash Schemes: this is sub-divided into; Skimming, Cash larceny, fraudulent disbursements.
Skimming
This is a process by which cash is removed from the entity before it enters the accounting system.
This is an-off-book scheme‖ because the receipt of the cash is never reported to the entity.
The most common skimming schemes are: unrecorded sales, understated sales and theft of income checks
Cash Larceny
In the occupational fraud setting, a cash larceny can be defined as the intentional taking away of an employer‘s cash (the term cash includes both currency and checks) without the consent and against the will of the employer. Skimming was defined above as the theft of off-book funds. Cash larceny schemes, conversely, involve the theft of money that has already appeared on a victim company‘s books. Therefore, cash larceny schemes are ―on book frauds.

Fraudulent Disbursements
Fraudulent disbursements are the most common form of asset misappropriation, and they occur when an employee uses his position of employment to cause a payment for some inappropriate purpose. Fraudulent disbursements are on-book fraud schemes, meaning that cash (checks) leaves the entity fraudulently, but it is recorded on the books and thus an audit trail exists. Fraudulent disbursement schemes are broken down into: Check tampering schemes, Register disbursement schemes, Billing schemes, Expense reimbursement schemes and Payroll schemes.


CHECK TAMPERING SCHEMES
Check tampering is a type of fraudulent disbursement scheme whereby an employee either (1) prepares a fraudulent check for his own benefit or (2) intercepts a check intended for a third-party and converts the check to his own benefit. Other fraudulent disbursement schemes, such as false billings or payroll fraud, tend to rely on false claims for payment. Some false document, perhaps an invoice or a timecard, is submitted to the victim organization and generates the fraudulent payment. Such schemes are based on trickery—convincing the victim to make a payment based on a fraudulent invoice, timecard, expense report, or other document. Check tampering schemes are a more direct form of fraud. Instead of relying on false support to generate a fraudulent disbursement, the perpetrator of a check tampering scheme takes physical control of a check and places false information on that instrument. The fraudster might forge a signature, alter a payee, alter the amount of the check, and/or forge an endorsement. The key is that the perpetrator places false information on a company check and that this action enables the fraudster to illegally obtain funds from his employer.


1.4.0 STOCK MARKET FRAUD
This is a practice whereby market for securities is manipulated either upward or downward by persons who are seeking to make it appear that the securities are worth either more or less than their true values. It is about creating a false appearance as to the value of the securities. It is one of the common frauds in the security market. Instances are bound where issuers of securities give money to people to acquire those securities and make it appear that there is a competitive market for the security in question. This fraudulent act creates false representation of high demand and thus, its market value will increase. A typical example of market fraud is the criminal breach of security market protocol in Nigeria years back when Mallam Sanusi on assumption of office as the Governor of Central Bank Nigeria lunched investigation and expose commercial Banks executives who where in the habit of issuing bad loans to investors who in turns use such loan for the purchase of their securities. This can also be classified under cooperate fraud.
Also, the U.S. Department of Justice Web site which addresses the major types of Internet fraud reports the following recent examples of various types of illegal activity carried out using the medium.
In the first case, defendants bought 130,000 shares of bogus stock in NEI Web world, Inc., a bankrupt company whose assets had previously been liquidated. Defendants in the case then posted e-mail messages on various Internet bulletin boards, claiming that NEI was being acquired by a wireless telecommunication company. Within 45 minutes of the posting, shares increased from $8 to $15 each, during which time defendants "cashed out." The remaining stock was worth 25 cents a share within a 30 minute period. The second example involves a case in which an employee of PairGain Technologies set up a fraudulent Bloomberg news Web site and reported false information regarding the company's purchase by a foreign company. The employee then posted bogus e-mail messages on financial news bulletin boards that caused a 30 percent manipulation of PairGain stock prices within hours.

1.5.0 Internet Fraud
Under this category of fraud, the perpetrator develops a scheme using one or more elements of the internet to deprive a person of property or any interest, estate, or right by a false representation of a matter of fact, whether by providing misleading information or by concealment of information. As increasing numbers of businesses and consumers rely on the Internet and other forms of electronic communication to conduct transactions; illegal activity using the very same media is similarly on the rise. Fraudulent schemes conducted via the Internet are generally difficult to trace and prosecute, and they cost individuals and businesses millions of dollars each year. From computer viruses to Web site hacking and financial fraud, Internet crime became a larger concern than ever in the 1990s and early 2000s. In one sense, this situation was less a measure of growing pains than of the increasing importance of the Internet in daily life. More users surfing the Web, greater business reliance upon e-mail, and the tremendous upsurge in electronic commerce have raised financial stakes.
A single virus outbreak in 1999 was blamed for more than $80 million in damage, while Web site hacking in early 2000 purportedly cost hundreds of millions more. Adding new wrinkles were complaints about rampant fraud on popular online auction sites. Together, the problems drew tough rhetoric from U.S. officials, who announced new initiatives, deployed cyber-crime units, made numerous arrests, and even pursued international manhunts. According to U.S Justice Department Web site devoted to the topic, Internet fraud refers to any type of scheme in which one or more Internet elements are employed in order to put forth "fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme." As pointed out in a report prepared by the National White Collar Crime Center and the Federal Bureau Investigation  (FBI) in 2001, major categories of Internet fraud include, but are not limited to, auction or retail fraud, securities fraud, and identity theft.
The IFCC, in its 2001 Internet fraud report, released statistics of complaints that had been received and then referred to law enforcement or regulatory agencies for action. For the 12-month period covered by the report, the IFCC received more than 17 million inquiries to its Web site, with nearly 50,000 formal complaints lodged. It must be noted, however, that the number of complaints included reports of computer intrusions and unsolicited child pornography.
1.6.0 DATING FRAUD: under this fraudulent scheme, the scammer usually a man assumes the profile of a young, attractive woman on an online dating site. Women can also assume a false identity/profile or may work with males in contacting you. The photos are stunning, perhaps professionally taken or provocative usually downloaded from the internet, but the description of the partner is vague. The usual scam involves starting an online relationship with someone you are led to believe lives somewhere else, in your own country for instance. Only after a relationship is formed does the correspondent inform the foreigner where they are really from. After 1-3 months the scammer asks for money using death or illness in the family, need to escape an abusive situation, visa and travel expenses, or arrest by customs officials for smuggling gold. Scammers may say they are orphans, could not finish their education to gain your sympathy. The stories are usually not true. Claims money is required for medical emergencies are often backed by fake documents from local doctors or hospitals. Regardless of the reason for the request, the scam is usually so involved in the relationship that they send money on the first request. At this point, relationships have usually advanced from email to phone calls and often the Scam may have spoken with the Scammers’ alleged "relatives" and/or visa broker and feels like a part of the family. Scammers do send scanned copies of altered Ghanaian passports and visas to assure foreigners of their existence and/or intention to visit. The next and most lucrative step in the scam comes when the scammer allegedly leaves Ghana but is picked up by immigration authorities. Usually, the scam receives an email or phone call from the scammer in prison asking for more money to bribe the officials to facilitate their release. Customs officers may also be involved with scammers.

Donemmy:
DIMENSIONS OF FRAUD IN NIGERIA (INTROUCTION)
BY
AKOBI EMMANUEL EBENYIN HND, BSc Econs, PGD Crim, Msc Crim. Fnsis.

INTRODUCTION
Fraud is as old as the history of mankind, in the biblical time as recorded in the book of Gen27:5-46 Jacob fraudulently disguised and present himself as Esau and thus, received blessings meant for Esau from Isaac.
In Ancient Egypt, scribes were assigned to the monitoring of the pharaohs’ incoming and outgoing grain and gold inventories so as to prevent fraud and theft.
In Greek civilization, Aristotle reports on the fraud surrounding the enactment of the Seisachtheia, or Solon’s shaking-off of burdens in the 6th century BC, which released the Greeks from slavery for debts.
In Roman times, Cicero’s Verrine Orations attest to the multiple thefts and the fraudulent collection of tax proceeds by Verres, the Governor of Sicily.
It has constantly and continually persists and resists eradication. Thus, become common in our society today; exist in different forms using varying tactics/ modus operandi and affects private enterprises as well as public entities.
In countries most affected by fraud, the destabilizing impact on society constitutes a real threat to their security and sovereignty. The loss of superpower benefactors, unstable commodity prices and rising domestic and foreign debt make hard currency and profits connected with organized crime almost irresistible, especially in marginalized African countries (Snyman 2001:61).
The increased ability of criminal organizations to operate internationally is a potential danger for social and economic order in every country. The huge potential profits to be gained from such organized crime encourage criminals, who are already involved in the less serious crimes, to extend their activities to organized crimes such as fraud, corruption, bribery, forgery, misrepresentation and money laundering on a national and international scale. Men armed with guns, or those equipped with pry bars to open doors and windows, do collectively less harm to a country’s economy than smooth talkers (found among both sexes) who manipulate companies’ books, offer unfounded securities, commit forgery, organize credit cards schemes, take bribes here and there, or induce the unfortunate and helpless to forego proper medical aid for quackery, as well as attempt other cute tricks to separate the unsuspecting and trusting citizens from their property. Armed robbers or those who break and enter doors and windows, do collectively less harm to a country’s economy than those who are able to manipulate others by their persuasive powers, manipulate financial statements of companies, offer unfounded securities, commit forgery, organize credit card schemes, accept bribes or persuade the helpless and unfortunate to forego proper medical aid for quackery. The total losses experienced each year due to fraud operations are virtually impossible to calculate accurately. This type of crime, from a policing perspective, is detectable rather than preventable; even a large increase in the number of patrols, or a separate detective division would have negligible effect (Glick, Newson & Graves 1974:4).
The fraud problem continues to plague organizations and stakeholders around the world.
The Association of Certified Fraud Examiners (ACFE 2006) estimates that total annual fraud losses in the U.S. exceed $650 billion and that fraud costs organizations five percent of their annual revenue.
1.1.2 OBJECTIVES
The general objective of this paper is to extrapolate different categories of fraud as well as modus operandi of the fraudsters.
1.2.1 ADVACE FEE FRUD
Advance Fee Fraud is therefore defined as an upfront payment, by a victim to a fraudster, to allow him to take part in a much larger financial transaction, which he believes will either bring him profit or will result in credit being extended to him. In this case, the victim is asked to pay an advanced fee of some sort such as “transfer tax”, “performance bond” or “money to buy chemicals”. If the victim pays the advanced fee, there are often many “complications” which require even more advance payments, until the victim either quits, or runs out of funds. It is a crime that involves misrepresentation (as described above), corruption and bribery, forgery and money laundering, extortion, kidnappings and even murder of the victim at some stage.
Fraud in general and Advance Fee Fraud in particular is said to be a crime where the primary motivation is greed. The AFF fraudsters prey upon human vanity, fantasy, loneliness, insecurity, and fear. According to Bohlen and Kerr (Friedrichs 2004:178) it is usually, during hard economic times, when people are desperate for money or savings that get-rich-quick schemes tend to flourish.
These criminal groups, also known as the Nigerian Crime Enterprises (NCEs), are accustomed to executing transnational criminal activities, including fraud scams directed to most countries around the globe. It has become a major business in recent times and has generated very large profits for those who are successful with it.
It must be noted that AFF confidence scams are only limited by the perpetrator’s imagination. However, their proposals share a common thread. The proposals are often unsolicited, emphasize the urgency and confidentiality of the deal, and require the victim to pay various government and legal fees and taxes before receiving what turns out to be non-existent money. New variations of these scams are being developed all the time but the most common forms of these fraudulent business proposals fall into these main categories:
Transfer of funds from over-invoiced contracts
Contract fraud (C.O.D of goods and services)
Conversion of hard currency (black-money & money cleaning )
Sale of crude oil below market prices.
Purchase of real estate.
Disbursement of money from wills (benefactor of a will).
Held for ransom / Kidnappings and murder. In the nutshell, advance fee fraud requires you to hand over money upfront in return for a larger sum. Of the common example is the Nigerian 419 scam. Here you will receive an email from what appears to be businessmen or officials from Nigeria or another African country offering to transfer large sums of money into your bank account to get it out of the country. You will be asked to keep large chunk of this cash provided you pay a fee first. Victims comply end up seen nothing in returns.
1.3.0 OCCUPATIONAL FRAUD
Occupational fraud is subdivided into:
(a)Financial statement fraud
(b)Corruption
(c)Misappropriation of Assets
1.3.1 Financial statement fraud
This refers to an intentional or reckless conduct, whether by act or omission, that results in materially misleading financial statements.
It involves misstating the financial condition of an entity by intentionally misstating the financial details with the intent to deceive end users.
Financial statements can be falsified to:
Deceive investors and creditors
Cause a company’s stock price to rise
Meet cash flow needs
Hide company losses and problems

Financial statements can be misstated as a result of intentional efforts to deceive or as a result of undetected asset misappropriations that are so large that they cause misstatement.
1.3.2 Corruption:
Corruption involves the wrongful use of a position, contrary to the responsibilities of that position, to procure a benefit.
􀂄Examples include kickback schemes and conflict of interest schemes.
1.3.3 Misappropriation of assets
This involves theft, embezzlement, or misuse of company assets for personal gain.
It includes both the theft of company assets, such as cash or inventory, and the misuse of company assets, such as using a company car for a personal trip. Asset misappropriation schemes to be discussed here are: Cash schemes, Accounts receivable schemes, inventory and fixed asset schemes.

Cash Schemes: this is sub-divided into; Skimming, Cash larceny, fraudulent disbursements.
Skimming
This is a process by which cash is removed from the entity before it enters the accounting system.
This is an-off-book scheme‖ because the receipt of the cash is never reported to the entity.
The most common skimming schemes are: unrecorded sales, understated sales and theft of income checks
Cash Larceny
In the occupational fraud setting, a cash larceny can be defined as the intentional taking away of an employer‘s cash (the term cash includes both currency and checks) without the consent and against the will of the employer. Skimming was defined above as the theft of off-book funds. Cash larceny schemes, conversely, involve the theft of money that has already appeared on a victim company‘s books. Therefore, cash larceny schemes are ―on book frauds.

Fraudulent Disbursements
Fraudulent disbursements are the most common form of asset misappropriation, and they occur when an employee uses his position of employment to cause a payment for some inappropriate purpose. Fraudulent disbursements are on-book fraud schemes, meaning that cash (checks) leaves the entity fraudulently, but it is recorded on the books and thus an audit trail exists. Fraudulent disbursement schemes are broken down into: Check tampering schemes, Register disbursement schemes, Billing schemes, Expense reimbursement schemes and Payroll schemes.


CHECK TAMPERING SCHEMES
Check tampering is a type of fraudulent disbursement scheme whereby an employee either (1) prepares a fraudulent check for his own benefit or (2) intercepts a check intended for a third-party and converts the check to his own benefit. Other fraudulent disbursement schemes, such as false billings or payroll fraud, tend to rely on false claims for payment. Some false document, perhaps an invoice or a timecard, is submitted to the victim organization and generates the fraudulent payment. Such schemes are based on trickery—convincing the victim to make a payment based on a fraudulent invoice, timecard, expense report, or other document. Check tampering schemes are a more direct form of fraud. Instead of relying on false support to generate a fraudulent disbursement, the perpetrator of a check tampering scheme takes physical control of a check and places false information on that instrument. The fraudster might forge a signature, alter a payee, alter the amount of the check, and/or forge an endorsement. The key is that the perpetrator places false information on a company check and that this action enables the fraudster to illegally obtain funds from his employer.


1.4.0 STOCK MARKET FRAUD
This is a practice whereby market for securities is manipulated either upward or downward by persons who are seeking to make it appear that the securities are worth either more or less than their true values. It is about creating a false appearance as to the value of the securities. It is one of the common frauds in the security market. Instances are bound where issuers of securities give money to people to acquire those securities and make it appear that there is a competitive market for the security in question. This fraudulent act creates false representation of high demand and thus, its market value will increase. A typical example of market fraud is the criminal breach of security market protocol in Nigeria years back when Mallam Sanusi on assumption of office as the Governor of Central Bank Nigeria lunched investigation and expose commercial Banks executives who where in the habit of issuing bad loans to investors who in turns use such loan for the purchase of their securities. This can also be classified under cooperate fraud.
Also, the U.S. Department of Justice Web site which addresses the major types of Internet fraud reports the following recent examples of various types of illegal activity carried out using the medium.
In the first case, defendants bought 130,000 shares of bogus stock in NEI Web world, Inc., a bankrupt company whose assets had previously been liquidated. Defendants in the case then posted e-mail messages on various Internet bulletin boards, claiming that NEI was being acquired by a wireless telecommunication company. Within 45 minutes of the posting, shares increased from $8 to $15 each, during which time defendants "cashed out." The remaining stock was worth 25 cents a share within a 30 minute period. The second example involves a case in which an employee of PairGain Technologies set up a fraudulent Bloomberg news Web site and reported false information regarding the company's purchase by a foreign company. The employee then posted bogus e-mail messages on financial news bulletin boards that caused a 30 percent manipulation of PairGain stock prices within hours.

1.5.0 Internet Fraud
Under this category of fraud, the perpetrator develops a scheme using one or more elements of the internet to deprive a person of property or any interest, estate, or right by a false representation of a matter of fact, whether by providing misleading information or by concealment of information. As increasing numbers of businesses and consumers rely on the Internet and other forms of electronic communication to conduct transactions; illegal activity using the very same media is similarly on the rise. Fraudulent schemes conducted via the Internet are generally difficult to trace and prosecute, and they cost individuals and businesses millions of dollars each year. From computer viruses to Web site hacking and financial fraud, Internet crime became a larger concern than ever in the 1990s and early 2000s. In one sense, this situation was less a measure of growing pains than of the increasing importance of the Internet in daily life. More users surfing the Web, greater business reliance upon e-mail, and the tremendous upsurge in electronic commerce have raised financial stakes.
A single virus outbreak in 1999 was blamed for more than $80 million in damage, while Web site hacking in early 2000 purportedly cost hundreds of millions more. Adding new wrinkles were complaints about rampant fraud on popular online auction sites. Together, the problems drew tough rhetoric from U.S. officials, who announced new initiatives, deployed cyber-crime units, made numerous arrests, and even pursued international manhunts. According to U.S Justice Department Web site devoted to the topic, Internet fraud refers to any type of scheme in which one or more Internet elements are employed in order to put forth "fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme." As pointed out in a report prepared by the National White Collar Crime Center and the Federal Bureau Investigation  (FBI) in 2001, major categories of Internet fraud include, but are not limited to, auction or retail fraud, securities fraud, and identity theft.
The IFCC, in its 2001 Internet fraud report, released statistics of complaints that had been received and then referred to law enforcement or regulatory agencies for action. For the 12-month period covered by the report, the IFCC received more than 17 million inquiries to its Web site, with nearly 50,000 formal complaints lodged. It must be noted, however, that the number of complaints included reports of computer intrusions and unsolicited child pornography.
1.6.0 DATING FRAUD: under this fraudulent scheme, the scammer usually a man assumes the profile of a young, attractive woman on an online dating site. Women can also assume a false identity/profile or may work with males in contacting you. The photos are stunning, perhaps professionally taken or provocative usually downloaded from the internet, but the description of the partner is vague. The usual scam involves starting an online relationship with someone you are led to believe lives somewhere else, in your own country for instance. Only after a relationship is formed does the correspondent inform the foreigner where they are really from. After 1-3 months the scammer asks for money using death or illness in the family, need to escape an abusive situation, visa and travel expenses, or arrest by customs officials for smuggling gold. Scammers may say they are orphans, could not finish their education to gain your sympathy. The stories are usually not true. Claims money is required for medical emergencies are often backed by fake documents from local doctors or hospitals. Regardless of the reason for the request, the scam is usually so involved in the relationship that they send money on the first request. At this point, relationships have usually advanced from email to phone calls and often the Scam may have spoken with the Scammers’ alleged "relatives" and/or visa broker and feels like a part of the family. Scammers do send scanned copies of altered Ghanaian passports and visas to assure foreigners of their existence and/or intention to visit. The next and most lucrative step in the scam comes when the scammer allegedly leaves Ghana but is picked up by immigration authorities. Usually, the scam receives an email or phone call from the scammer in prison asking for more money to bribe the officials to facilitate their release. Customs officers may also be involved with scammers.

This is such a powerful and well-researched breakdown. It really shows how deeply rooted fraud is in our society, from advance fee scams to real estate fraud and even dating scams. It’s sad how often people lose their hard-earned money because they were simply uninformed or desperate.
That’s why conversations like this are so meaningful. More Nigerians, both at home and abroad, need access to trustworthy information and safe spaces to learn. Thanks again for sharing this write-up. It’s the kind of awareness we need more of.