Nigerian fraud has become "Internet folklore" and there are many sites on the Internet about it.
In recent years - a unit of law enforcement professionals have been waging war against fraud in Nigeria - and as a result, it's not very safe to commit fraud in Nigeria anymore. Here is a story of a recent arrest, where it appears that 419 (advance fee fraud) might have been helping fund a terrorist group:
"The Economic and Financial Crimes Commission, EFCC, have arrested a terrorism suspect in a raid on a cybercafe, NetXpress, located on Road 51, Festac town, Lagos. The commission disclosed that 13 other suspects caught in the act of sending scam mails to Europe and America, were also arrested."
"The suspect who claimed to represent a faceless terror group, Terrorist International was caught demanding payoff from a multinational oil company to forestall the kidnap of its expatriate staff in the Niger Delta. The other suspects were caught sending scanned documents purportedly issued by Chief Executives of Nigerian government agencies such as the Central Bank of Nigeria, CBN and the Nigerian National Petroleum Corporation, NNPC."
Link from the EFCC site, here.
Of note, Nigeria recently passed a pretty strict law on advance fee (419) activity entitled the Advance Fee Fraud Act. This law allows for cyber-cafe owners and even the landlords to be arrested if 419 activity is occurring on their premises.
Advance fee activity is a worldwide problem and it's not only done by Nigerians. Catching this group undoubtedly saved a lot of people in other countries from being victimized.
There seems to be a lot of speculation from the law enforcement community that Internet fraud (a worldwide problem) is being used to fund terrorist groups. In this recent case, the EFCC has helped validate this.
Here is a previous post - with links to others - regarding concerns by law enforcement that Internet fraud might be a source of terrorist funding:
Great Britain Creates National Fraud Squad to Fight Organized Crime and Terrorists
Saturday, August 05, 2006
Friday, August 04, 2006
Fraud Steals from the Truly Needy
My blogging friend, Mr. T. L. Stanley, author of the New Rosemead Times wrote a post (Poverty Caused by Corruption) that made me do a little thinking.
Mr. Stanley writes:
"Fighting poverty seems to be hot ticket for politicians every time world leaders get together and want to show everyone they are in a giving mood. For some reason, America wants to throw money at worldwide poverty. Unfortunately, the money that is aimed at poverty is usually stolen by corrupt leaders of poor countries. Zimbabwean President Robert Mugabe is just one example of corruption. This president has driven a highly productive country into bankruptcy in 20 years. Because, political corruption is common. And, this president made the mistake of assuming that productive outputs would continue in the face of economic and political oppression."
For the full post (highly recommended) link, here.
Not only are we throwing good money at "not-so-good" countries, but we can see a lot of the problem, right here at home. Unfortunately, the Katrina hurricane and other allegations about "fraud and abuse" in programs intended to help the poor (a noble cause) help support Mr. Stanley's thoughts.
There is a lot of evidence showing that a substantial amount of the money intended to help the "poor," lines the coffers of corrupt individuals. Since the money never reaches the people it was intended for - corruption truly does cause poverty. Fighting poverty is a "noble cause," but it's also important to ensure that the resources are reaching the people that need it.
What is needed is a "zero-tolerance" approach to the people taking advantage of the poor.
If we did this - perhaps our social programs wouldn't be "going broke."
Mr. Stanley writes:
"Fighting poverty seems to be hot ticket for politicians every time world leaders get together and want to show everyone they are in a giving mood. For some reason, America wants to throw money at worldwide poverty. Unfortunately, the money that is aimed at poverty is usually stolen by corrupt leaders of poor countries. Zimbabwean President Robert Mugabe is just one example of corruption. This president has driven a highly productive country into bankruptcy in 20 years. Because, political corruption is common. And, this president made the mistake of assuming that productive outputs would continue in the face of economic and political oppression."
For the full post (highly recommended) link, here.
Not only are we throwing good money at "not-so-good" countries, but we can see a lot of the problem, right here at home. Unfortunately, the Katrina hurricane and other allegations about "fraud and abuse" in programs intended to help the poor (a noble cause) help support Mr. Stanley's thoughts.
There is a lot of evidence showing that a substantial amount of the money intended to help the "poor," lines the coffers of corrupt individuals. Since the money never reaches the people it was intended for - corruption truly does cause poverty. Fighting poverty is a "noble cause," but it's also important to ensure that the resources are reaching the people that need it.
What is needed is a "zero-tolerance" approach to the people taking advantage of the poor.
If we did this - perhaps our social programs wouldn't be "going broke."
Cybercrime Treaty Hailed as a Violation of Privacy by the EFF
The Electronic Frontier Foundation is concerned that a law (soon to be voted on in the Senate) would violate the privacy of Americans.
Specifically, the argument against it is that it would subject Americans to laws that aren't a crime in this country.
Hours ago - it was announced that this law was ratified by the Senate.
Here is what the EEF is saying:
The Convention on Cybercrime is a sweeping treaty that has been waiting in the wings of the Senate for nearly three years. Now the administration is putting pressure on the Senate to ratify it in the next two days. If it does, it would mean the U.S. would enforce not just our own, but the rest of the world's bad Net laws. Call your Senator now, and ask them to hold its ratification.
The treaty requires that the U.S. government help enforce other countries' "cybercrime" laws - even if the act being prosecuted is not illegal in the United States. That means that countries that have laws limiting free speech on the Net could oblige the F.B.I. to uncover the identities of anonymous U.S. critics, or monitor their communications on behalf of foreign governments. American ISPs would be obliged to obey other jurisdiction's requests to log their users’ behavior without due process, or compensation.
Link to EEF story, here.
Interestingly enough - this was a big story on Digg. Here it is - along with a lot of comments:
World's Worst Internet Law Sneaking Through the Senate
Just thought I would pass this on - I would hate to investigated because I wrote something about a "fraud problem" in a foreign land that doesn't recognize the right of "free speech."
If anyone would care to write their Senator and express their opinion (positive or negative), you can find their e-mail address, here.
Hopefully Alberto Gonzales is right when he said "the cybercrime pact strengthens international cooperation in "obtaining electronic evidence" while still honoring constitutional protections of free speech and privacy."
I'm all for going after cybercrimals, but if it violates our constitutional rights, we need to take a closer look at it.
After all, our constitution is what made this country great!
Specifically, the argument against it is that it would subject Americans to laws that aren't a crime in this country.
Hours ago - it was announced that this law was ratified by the Senate.
Here is what the EEF is saying:
The Convention on Cybercrime is a sweeping treaty that has been waiting in the wings of the Senate for nearly three years. Now the administration is putting pressure on the Senate to ratify it in the next two days. If it does, it would mean the U.S. would enforce not just our own, but the rest of the world's bad Net laws. Call your Senator now, and ask them to hold its ratification.
The treaty requires that the U.S. government help enforce other countries' "cybercrime" laws - even if the act being prosecuted is not illegal in the United States. That means that countries that have laws limiting free speech on the Net could oblige the F.B.I. to uncover the identities of anonymous U.S. critics, or monitor their communications on behalf of foreign governments. American ISPs would be obliged to obey other jurisdiction's requests to log their users’ behavior without due process, or compensation.
Link to EEF story, here.
Interestingly enough - this was a big story on Digg. Here it is - along with a lot of comments:
World's Worst Internet Law Sneaking Through the Senate
Just thought I would pass this on - I would hate to investigated because I wrote something about a "fraud problem" in a foreign land that doesn't recognize the right of "free speech."
If anyone would care to write their Senator and express their opinion (positive or negative), you can find their e-mail address, here.
Hopefully Alberto Gonzales is right when he said "the cybercrime pact strengthens international cooperation in "obtaining electronic evidence" while still honoring constitutional protections of free speech and privacy."
I'm all for going after cybercrimals, but if it violates our constitutional rights, we need to take a closer look at it.
After all, our constitution is what made this country great!
SEC Sends a Message to Insurer - It's Not Nice to Trick the Military
Taking advantage of our military in time of war is despicable. Here is some positive news that the SEC (Security and Exchange Commission) is protecting those who protect us.
From the SEC press release:
"Washington, D.C., Aug. 3, 2006 — The Securities and Exchange Commission today sued a Waco, Texas, insurance company and its affiliates for targeting American military personnel with a deceptive sales program that misleadingly suggested that investing in the company’s product would make one a millionaire. Since 2000, approximately 57,000 members of the United States military services purchased the product. The vast majority earned little or nothing on their investment."
The good news is that money from the law suit will go to the service members victimized by the misdeeds of this insurance company.
Press release, here.
There are a lot of "get rich quick schemes" popping up in "in-boxes." In many instances, this means someone getting "rich" at the expense of someone falling for their pitch.
Here are some great tips from the SEC on how to avoid securities fraud:
Be wary of promises of quick profits, offers to share "inside" information, and pressure to invest before you have an opportunity to investigate.
From the SEC press release:
"Washington, D.C., Aug. 3, 2006 — The Securities and Exchange Commission today sued a Waco, Texas, insurance company and its affiliates for targeting American military personnel with a deceptive sales program that misleadingly suggested that investing in the company’s product would make one a millionaire. Since 2000, approximately 57,000 members of the United States military services purchased the product. The vast majority earned little or nothing on their investment."
The good news is that money from the law suit will go to the service members victimized by the misdeeds of this insurance company.
Press release, here.
There are a lot of "get rich quick schemes" popping up in "in-boxes." In many instances, this means someone getting "rich" at the expense of someone falling for their pitch.
Here are some great tips from the SEC on how to avoid securities fraud:
Be wary of promises of quick profits, offers to share "inside" information, and pressure to invest before you have an opportunity to investigate.
Be careful of promoters who use "aliases." Pseudonyms are common on-line, and some salespeople will to try to hide their true identity. Look for other promotions by the same person.
Words like "guarantee," "high return," "limited offer," or "as safe as a C.D." may be a red flag.
No financial investment is "risk free" and a high rate of return means greater risk.
Watch out for offshore scams and investment opportunities in other countries. When you send your money abroad, and something goes wrong, it's more difficult to find out what happened and to locate your money.
If a company is not registered or has not filed a "Form D" with the SEC, visit the website of the North American Securities Administrators Association to find your state securities regulator.
The SEC also has an excellent web page to help you investigate before you invest:
Being an informed consumer is imperative in the Internet age. There is a lot of information on government sites that help the common person do this.
You can report suspected "suspicious activity" to the SEC, here.
All too often - when we spot a scam - we move on without thinking "someone might actually fall for this." If everyone reported what they suspect is a scam, we would see a lot less of it going on.
Of course, education is a powerful tool, also.
And if it seems to good to be true, is probably is NOT!
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