Scams

What is an Advance Fee Fraud Scam?

It feels like there are a plethora of scams lurking around around each and every corner in life.  Normally at Wealth Recovery Expert we focus on trading scams, but being that we are a company who provides service to anyone in need, we thought it we should highlight some other scams to be weary of and avoid.

An Advance fee fraud is, in short, a scam that asks for advance payment in order to receive goods or money.  Truth be told a lot of victims of trading scams will be hit with an advance fee fraud as the final blow to their victim.  For example after a trading scam victim is tricked into depositing tens of thousands of dollars they will then try to withdraw from their small fortune which they believe they have accumulated and they will be told that in order to receive they withdrawal they must pay some bogus taxes and/or a fake service fee.

How is the scam run?

An Advanced fee fraud is the most common scam these days.  Approximately 50% of scams reported in Australia were this type of scam.  Included in this scam is any type of operation that requires being paid upfront and/or personal info with the promise of service, goods or cash that never materializes.  They will keep pulling their victim along by inventing new taxes, or fees every step of the way in order to keep the money coming to them as long as they can.

The marketing tactic of these particular types of scams are generally on mass.  They are usually don via email or post.

Upfront Payment Scam

The upfront payment scam is the most often manifested version of this scam.  A well know version of this scam is the Nigerian Prince scam.  If you are not familiar here is how it works.  The intended victim receives and email from supposed Nigerian prince who wants to move millions of dollars to the country in which you reside.  He needs someone to send the money to cover the tax of shifting the money.  If you are willing to cover the tax then he will give you a significant percentage of the millions that he is moving to your country.

Another commonly used version of the Upfront Payment Scam is the fake inheritance scam.  I this version the would be victim is contacted via email and informed there is a huge inheritance from a long-lost relative that is waiting to be claimed.  You just need to pay for the up-front legal fees and they inheritance will be cleared and you can go retire on your yacht in the Caribbean.

Other manifestations of this scam can be lotto winnings, fake prizes, dating, and classified ads scams.  The principal is always the same… Send me the money via wire or crypto currency and then I will provide to you X, Y and Z, which will never be provided.

How can you protect yourself?

Here are some easy tips to implement that will fully protect you from 90% of scams out there.

Um… Do i know you?

If you receive a call, email or letter from someone who you don’t know.  And that person is asking for money.  Just ignore it.  If they claim to be a debt collector then ask for their employee number and company details then go to your local regulatory body and verify they are real.  If they cannot be verified then they are a SCAM!

How to pay and stay protected

The easiest solution is always pay with a credit card or Paypal for any and every service.  If possible pay with Amex, as they provide the greatest and fastest protection for their clients.  NEVER pay for anything in crypto currency, they may as well call the currency “I’ve been scammed currency.”  Why?  Crypto currency cannot be traced and has absolutely zero protection.  Never pay via bank transfer, as soon as that money is sent it will be gone never to be seen again.

Google it…

Whenever you want to find out information about something just google it.  Who ever the person or business is, just google that name with scam or fraud next to it and see what google says.  We live in a generation where information is shared both instantly and internationally so if someone has been scammed by the person or that company it is going to show up on google.