Internet Fraud - Are You Vulnerable?

Some third world countries, particularly Nigeria has been indexed for scams, and financial fraud. This has reflected negatively on the volume, type and quality Investments into the country. Many prospective investors avoid the country.

They are however avoiding Africa's biggest market in many aspects. For example, within seven years of liberalized mobile phone operation and licensing, the country recorded 63 million subscribers and became Africa's Largest. This incidentally is a country that imports US$45 billion worth of goods and services annually. We can imagine the size of this market if tapped. Yet, this depends on our ability to curb this international menace.

The country on its own already has one of the toughest legislation on advance fee fraud, (also known as "419" after the relevant section of the penal code that deals with this kind of fraud).For example, a person can go to prison for seven years without an option of fine if convicted for issuing a check when knowing that funds do not exist in the account. In spite of this, the country is under siege by this fraudsters, as contained in warnings by the country's apex bank, the Central Bank of Nigeria in its website.

Sadly, many victims themselves have displayed questionable integrity when responding to such scams as posted on the internet or email spams.

Often, some precautions appear to be very drastic even if avoiding simple habits are enough. A country like Nigeria, for example has been so demonized by scam artists and fraudsters, that many investors and business people have missed even genuine opportunities as a result of their fear, while the country itself has lost a lot from investments. Spam guards in many email accounts block out critical messages, simply because their titles suggest anything monetary. Yet many other scams pass through, once the scam artist is able to understand the logic of the software deployed. Many victims might have escaped these scams if some "very scammable" habits were avoided, for example:-

1. No interest should be shown in taking a share of illegitimate wealth, often presented like this: "my late boss left US$1.2 billion and you can be the next of kin" or "I have discovered an unclaimed account of US$20 million and I need a trustworthy account for the transfer". The scam artist then ask for some cash in advance, and eventually absconds. This is from where the term "deviance fee fraud" is derived.
2. Some speak at the top of their voices on cellphones and every one overhears, without even listening, and the location of a "business partner" is learnt without trying.
3. Surprisingly, some even take delight in listening to such conversations and then end up becoming the victims.
4. Some, while accessing confidential information in public places like cybercafes and libraries, are carried away in their telephone conversations that they leave the terminals open, thereby allowing people in usually overcrowded cybercafes especially of the third world countries to see the information left on their screens. This reminds me of notices in the United States in the 1970s and 80s, where car owners were warned against leaving the keys in the ignition, where joy riders are tempted to take the car.

There are many others who, innocently become victims through fake impersonating websites, or in response to prospective internet dates, who eventually extract money from them.

In spite of the successes recorded in arresting and subsequent prosecution of many cases, more can still to be done to minimize this international menace before it mushrooms out of control.

This menace can be curtailed with concerted and coordinated efforts the same way as the Business Software Alliance (BSA) deals with pirated software.

This requires

• Incentives for successfully locating scam and spam authors,
• Brainstorming on ways to improve the legal framework to prosecute the located spammers.
• Encouraging web and email hosts to post letters to the physical addresses of their clients and customers and receive replies periodically. This will verify the location of their physical addresses, and by implication, those of scam artists who use their services.
• Regular work shops for law enforcers involved with handling scam artists,

More materials on this topic can be found in the July posting on www.management234.com
http://www.management234.com/may-2010.html