So how many of you have close millionaire friends living in Nigeria; or wealthy long lost relatives in the United Kingdom, or intimately know members (named Smith) from a Board of Governors of a country that you never even heard of that want to share their fortunes with you?
Or maybe instead of your kid's elementary school class writing letters to a relative bravely serving our country in Afghanistan, some lonely Staff Sgt. stationed in an area where due to security reasons the United States Army blacks out any and all cell and internet signals, easily contacts you because this one enlisted man figured out a way to breach the Army's air wave and cell signal jammers and gets out an email to you about how he wants to send you money so that you can forward it to his family living in a tent back in Bismarck, ND...no questions asked.
How about the nun from Belfast, Ireland, who is suffering from terminal colon cancer for the past 10 years, and wants to share her $10.75 million estate with you provided you promise to put it solely towards the Lord's work for her ... of which you can keep a 20% "Vig" for your effort (if nuns are earning in the seven figure neighborhood you can call me what you want but I'm taking an oath of celibacy, buying a yardstick, and putting on a black and white dress).
Whatever happened to the good ole days when the only spam emails I ever received were from strangers who want to help me increase the size of, well, err; you know the emails I'm speaking of. Times sure have changed, and so have the days of our lives ... internet style! Now, every day I receive an email from people claiming that through some labor intensive, arduous and mind straining process, have selected ME, yes me, to share their hard earned life savings with. Now I can probably concoct a million reasons why I'm a nice guy and how people may want to say a few pleasant words about me after my demise, but for strangers to want to shower me with loads of cash and prizes via the internet? I don't think so. So maybe these emails are a "fugazy" (like we used to say in the ole neighborhood)?
According to the privately funded National White Collar Crime Center, internet fraud will soon cost consumers and insurance carriers $1 Billion a year, as these figures are currently rising at an incredible rate of speed. Based in West Virginia, the NWCCC has formed a partnership with the FBI, and tracks Internet crime around the world. The Center reports that Americans lost a record amount to Internet fraud schemes last year, and the notorious "Nigerian 419" scam is blamed for the largest individual losses.
Named by the FBI, the Nigerian 419 scam is called just that because it originated in that Nigeria, where Section 419 of the Nigerian Criminal Code deals with fraud. Five years ago, Nigeria commissioned what they called the Economic and Financial Crimes Commission to investigate internet crimes and prosecute those who commit them. This organization claims to have very successfully eliminated the large majority of "home-grown scammers" and has recovered more than $750 million for victims worldwide. Because of its extremely successful conviction rate, commission head Nuhu Ribadu claims that most scam e-mails now originate elsewhere in Africa or in Eastern Europe. Although these modern day snake oil salesman have moved elsewhere, the name has remained with them. For those whose origin could be traced, 61% reside within the United States, 16% are in the United Kingdom, and 6% are from Nigeria.
In you are not familiar with this particular scam (although there are many variations); the Nigerian 419 basics are familiar to almost everyone who uses email. In an unsolicited e-mail, an alleged African official says he needs the recipient's help in transferring millions of dollars from the bank account of a deceased African leader, company official or senior government officer. If you, the recipient of the email, offers to aid them in their transaction to move the money to the United States by providing cash that the "transferor" says is needed to cover up front costs in order to complete the deal. Of course, if you pay as requested, the "official" then requests more cash as the deal encounters conjured up hitches.
The United States Secret Service estimates that annual losses within our country alone attributed to the Nigerian 419 are in the neighborhood of hundreds of millions of dollars. These funds are collected by Internet and regular mail variations of the con.
What is even more amazing than the people who invent these scams, are the level of people who fall prey to them. According to statistics published by a number of internet fraud investigating organizations throughout the world, it is not just retired seniors who are victimized, as many educated professionals who also are consumed by greed and lose their sensible minds. So many people are being lured in every day, that a website www.scamvictimsunited.com has been developed and their focus is to warn folks about the scams being circulated, and offer assistance and direction if you happen to be victimized.
Federal statistics indicate that Americans reported losing an all-time high of $550 million in 2009 from Internet fraud; $250 million in 2008; $225 million in 2007; $198.4 million in 2006, $68 million in 5005. However, they also cautioned that these numbers are really higher, because a large of victims do not report the crimes because they are either embarrassed or are afraid of retaliation. With an average loss of to the Nigerian 419-type scams of $5,100, many people feel that rather than be embarrassed by reporting their loss they rather just chalk it up to experience. Each year, however, the average loss has increased about $100 per incident so inflation and rising costs are affecting even the wealthiest of scammers.
Another favorite of those who commit these heinous crimes is an extortion type plot known as "The hit-man scheme". This one involves the perpetrator sending a life threatening note to the victim, warning them that he or she will be killed unless a ransom of thousands of dollars is paid. The FBI calls it a "recent high activity scare" that began appearing in e-mail inboxes last December. Some demands are as high as $20,000 or more.
Similar to most scams, the hit-man email is usually penned with poor or broken English, and full of many misspellings, and typically reads as follows: "I have followed you closely for one week and three days now.... Do not contact the police or F.B.I. or try to send a copy of this to them, because if you do I will know, and might be pushed to do what I have being paid to do."
Although the FBI has received about 159 complaints into their Internet Crime Complaint Center since the scam appeared, they have no reports of money loss or murder threats that were carried out. This scam is believed to be not as successful because most people believe that someone would be more willing to make them wealthy, than kill them. The Internet Crime Complaint Center is a joint venture between the FBI and the National White Collar Crime Center that has been tracking internet fraud for 6 years now is an agency that trains law enforcement officers to combat economic and cyber crimes. Out of all the complaints that the Internet center referred to law enforcement agencies for investigation, Internet auction fraud accounted for the highest volume, with 45 percent of complaints.
Most internet complaints are about Internet auction fraud and usually involve instances of a victim who buys a good or service through an online auction but never receives the merchandise from the seller after making payment. It may also work in the reverse, where the victim sells a good through an auction, ships the goods, and the buyer doesn't pay. Complaints regarding non delivery of items purchased on the Internet were in the second place, followed by Internet-related check and credit card fraud.
Hiding behind the anonymity that the internet affords, criminals are finding more complicated means of defrauding customers because like any other crime it becomes a matter of whom out smarts whom, and how much money may be made before law enforcement catches on. California produces more internet fraud victims than residents of any other state, with most victims of non-delivery of merchandise ordered through websites and "advance-fee scares," such as the 419 Scam.
However, not all internet fraud is attributable to a victim actually handing over cash. There are computer viruses being rapidly circulated that are extremely capable of secretly downloading passwords and account numbers without the user even knowing that they received a virus.
Spread through e-mail attachments, the viruses enable criminals to steal from bank and credit card accounts, and access online merchant accounts where they can purchase goods, have them shipped to a virtually untraceable location, and of course paid for by the true account holder. This is also not limited to items such as toaster ovens and televisions, as the Internet Crime Complaint Center has received hundreds of reports where victims complained of paying for vehicles and motorcycles that never arrived. Typically the buyer is asked to deposit the payment for the vehicle in a fraudulent financing center, which is of course suggested by the seller.
To avoid these scams and to protect yourself from these thieving type of emails, make certain to install up-to-date computer firewalls, use only reputable payment centers to make purchases online, and do not respond to unsolicited e-mails or popup ads, or letters from nuns.
By the way, (and the timing could not have been any better) as I was writing this column I received this letter in an email. Of course not to leave anyone out, I thought I would share it with all of you as I want everyone to share in the good fortune that this letter tells me that I am going to receive:
WORLD BANK AFRICAN REGION. FUND TRANSFER/VERIFICATION DEPARTMENT REF-WBAR/SWISS/ AD/VOL.3/2010. FROM THE DESK OF MR.SMITH WALTERS HEAD OF FOREIGN OPERATION WORLD BANK AFRICAN REGION ATTENTION: BENEFICIARY
We, the entire members of the Federal House of Senate, on behalf of the Federal Republic of Nigerian Government, under the auspices of the civilian Head of State, President Goodluck Ebele Jonathan and the Head of Foreign Operation Mr. Smith Walters including the British Prime Minister in conjunction with U.S.A GOVERNMENT, UNITED NATION ORGANIZATION held a meeting last week concerning debt payment, both foreign and local contractors and some inheritance funds. In that meeting we reach out that you have given this irrevocable approval order with Release Code: GNC/3480/ 02/00 in your favor for your contract entitlement/ payment with the UNITED NATIONS to your destination. I wish to bring to your kind/urgent notice that we have received your approved payment of your amount valued at USD$10.5M from the Federal Government of Nigeria under the auspices of the British Government for an immediate payment to you.
Your name appeared in our payment schedule list of beneficiaries that will receive their funds in this first quarter payment of the year because you have been contacted severally and you payment has been billed through various mediums and we are very sorry you have not been able to receive your funds up till now.
Now your new Payment, United nation Approval No; UN5685P, White House Approved No: WH44CV, Reference No.-35460021, Allocation No" 674632 Password No: 339331, Pin Code No: 55674 and your Certificate of Merit Payment No: 103, Released Code No: 0763; Immediate World Bank Telex confirmation No: -1114433; Secret Code No: XXTNOI3. Your payment has been approved by all International monetary bodies all over the world and you are to receive your funds with immediate effect after due documentation.
Be informed that the World Bank has taken care of all aspect of the Documentations and International approval.
Please as a matter of urgency send to us a following details to enable finalize your payment:
(1) Full names.
(2) Address, city, state and country.
(3) Direct mobile/phone/fax.
(4) International passport or Driven license.
(5) Company name (if any) position and address (6) Profession, age and marital status
You are advised in your own interest and for the safety of your funds to desist from any further communication with any other official or persons concerning this payment.
We await your immediate response.
Regards,
Mr. Smith Waiters
Head of Foreign Operation
World Bank African Region.
[ILLUSTRATION OMITTED]
All was quiet on the convention front the past two weeks, but on some recent road trips it was great to see folks like George Emerling from Emerling Agency in Williamsville, NY; Christine Flood from Eastern General Insurance in Rochester, NY; Charlie Youngers and Delores Faulks from George H. Youngers & Son in Amherst, NY; and Leslie Rogoff and Grisela Crespo from Madison Avenue Brokerage in Manhattan, NY. Also, thanks to Dave Lande from Century Coverage in Valley Stream, NY, for braving a cold, rainy night (actually it was about an hour because the game was called at 8:00 PM) at Yankee Stadium with me.
Next time we'll be talking about "Buffalo I Day" which is always a very well attend event complete with a sold out trade show, excellent continuing education courses, and a luncheon that always selects some of the most interesting and famous speakers. If you happen to be attending that conference and if you want to "learn how to sell more, manage less, & forecast sales more accurately", visit me in the FSC booth and I'll show you how ... you may even win a great prize!
Until then, "Ciao for now" ... and don't take any wooden internet nickels!
Michael Loguercio is Vice President of Sales for FSC; active Past President of the Young Insurance Professionals of New York State; current ACT/AUGIE, and Professional Insurance Agents of New York State Committee member; and is a regular Contributor to the Insurance Advocate. In his community, Michael is President of the Longwood Central School District Board of Education on Long Island, NY; and a member of The Middle Island, NY, Rotary Club and Lion's Club. He may be contacted at 631-345-9359 or michael.loguercio@fscsolutions.com. You may also follow him on Twitter @MLoguercioJr; and on Facebook @ Michael Anthony Loguercio Jr.
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