Scam Art:
How Vulnerable Are You?

Content
Presentation

1. Abuse of normal business process
2. Identity thefts
3. Fake documentation
4. Extortion

How do people get scammed?

1. Exploiting someone’s criminal tendency
2. Cultivating someone’s confidence
3. Eploiting someone’s innocence

How to rid the world of scam artists

• Starts with us
• Web Hosts and Email providers

Long term measures
Conclusion

When business issues in the third world is discussed, one cannot avoid a discussion about scams, the same way as crime and corruption. In many studies, poverty has been linked to crime especially where there is a great inequality in wealth distribution.

This, however is not exclusive to third world countries.

Scam art presents itself in so many ways:-

1. Abuse of normal business processes based on trust
   Most business transactions work on the assumption that the parties intend to honor the spirit of a transaction. Eg, writing a cheque for a transaction when the issuer knows there are no funds in the account to back up the payment,
   or a local purchase order without an ability or intention to pay when goods are delivered.


2. Sale of a property with a fake or invalid title
   


3. Transactions made by way of a fake identity:- use of stolen credit cards.


4. Fake Supporting Documents.
   ; Presentation of fake documents to back up a project proposal.


5. Extortion
   Presenting a deal with the sole intention of extorting money.

A third world country demonized for these kinds of fraud is Nigeria.
Incidentally, the country has very tough laws in its penal code against such crimes. For example, a person can go to prison for up to seven years, without an option of fine, if convicted for deliberately issuing a dud cheque.
(Chapter 38 of Nigeria’s Criminal code, which contains the famous Section 419).

How do people get scammed?

( LINKS TO SCAM WEBSITES WILL NOT BE PROVIDED ON THIS SITE)

There are three common ways they get their victims:

1. Exploiting some one’s criminal tendency
   A scam artist says he/she needs some money to bribe some officials so as to expatriate some stolen or ill gotten wealth out of a third world country. Or they need an account into which they can transfer some money found somewhere.
   
   The victim either divulges his account particulars to the scam artist who in the course of their correspondences obtains a password, a signature, or some other information with which the victim’s account is cleaned, or is persuaded to pay some money in advance to effect the transfer to the victim’s account. Hence the term “;advance fee fraud”;, known in Nigeria as “;419”;. Someone’s interest in ill gotten wealth turns out to be the bait.


2. Cultivating ones confidence over a period of time before striking.

   This a more dangerous form of scamming.
   You find a helpful or a dating website which, over time, requests for confidential information in bits. These are accumulated over a period of time and are assembled until it becomes substantial enough to successfully hack into the victims account or email address.

   This is very unfortunate as it may be difficult to differentiate these sites from many others who may ask for visitors’ details without any intention to defraud.
   Also in this category are scam artists who demand for money in internet dating sites, posing as prospective partners.


3. Exploiting someone’s innocence
   :- This is even more dangerous: A person suddenly finds an email purportedly sent from his bank, a card issuing company, or even, for example, the country’s Central Bank, asking for the details of his credit or ATM cards for a mandatory upgrade exercise.
   The website looks so much like the card issuing company or the Banks’ websites, only with different addresses. With the confidential details provided, the credit or ATM card could be used to the victim’s disadvantage.

Many businesses however, in an attempt to avoid being scammed simply block out any opportunity once it has any semblance of “;Nigeria”; on it.

This implies that such businesses are avoiding a market that, within seven years, became the sixteenth largest mobile phone market in the world and Africa’s largest, consisting of sixty three(63) million users in 2008, a market of eleven(11) million internet users and the twenty ninth (29th) in the world, which imports annually US$42 billion worth of goods and services (2009 estimates).The country’s estimated GDP (Gross Domestic Product based on purchasing power parity) for 2009 was US$357.2 billion, number 32 in the world. While the country’s economic data may not be the most impressive, it certainly must not be ignored in international trade, finance and commerce.

Moreover, there are internet software packages which make it difficult, if not impossible to establish a user’s location. These were designed to help users avoid persecution, where internet information is censored or monitored by repressive regimes. A scammer can therefore conceal his location. It is therefore very obvious that avoiding trade and commerce with Nigeria will not ensure protection from scam artists.

Curiously, Nigerian scams and scam artists have not been one of the top cases of the last two centuries.

How then can we rid the world of scam artists?

We cannot rid the world completely of scam artists, the same way we cannot with other forms of criminals. However, we can do a lot to reduce such to the barest minimum.
In this blogger’s own opinion, not enough is being done in this direction.

This will start with us

. First, we must find out how we can starve them of victims and money.
This will require some precautions by internet users:

1. A number of victims have been enticed by the prospects of laying their hands on some ill gotten or stray money somewhere. A victim’s integrity is in question by a favorable response or interest to prospects of a share in such money.
   
   We can see that such responses enrich scam artists, who become increasingly more dangerous, even while in a maximum security prison.
   (Please read this story).


2. .We must be very careful while on websites which offer “bargains” and “deals” obtained by circumventing legitimate charges and law enforcement measures. Be honest and don’t seek to cut corners especially when it comes to these class of charges or taxes, as you may eventually need their services (law enforcement agencies) when you become a victim.


3. 3.Don’t volunteer confidential information about yourself easily. Care in signing up, for example, email accounts, subscription lists etc., must be exercised. Try reputable sites and establish their reputation through well known search engines.
   As email providers must of necessity collect information, signing up with unknown networks can be very risky.


4. In responding to email marketing, carry out background checks on the email sender and address. For a small fee, background checks can reveal valuable information about an email sender especially if he or she has had previous convictions in the USA.


5. Avoid as much as possible the use of your regular or general purpose credit card for online purchases. Get a smaller denomination pre paid debit card or a credit card with a low spending limit.


6. Where large payments will be made, a buyer should locate and visit the website of the industry regulating body of the vendor. These precautions are worth the extra cost.


7. .Internet users must have the correct web addresses of sites in possession of their confidential data, and the correct extension. If, for example, your bank has a website address ending with dot com, you must not respond to emails from websites which end with dot net, or org, etc., even if it has a similar domain name.
   Unwary internet users will confuse the site with the genuine sites and may divulge information or respond to suggestions that can result in fraud.
   Nigeria’s apex bank, the Central Bank of Nigeria, has explicitly warned the public on the existence of such impersonating sites.


8. Avoid loud mobile telephone conversations in public places like buses, trains, cyber cafes, parties, bus stops, or even in a private taxi cab, especially where sensitive information is involved.
   You may never imagine how much of the conversation a listener can retain, especially when there is an intention to defraud.


9. If you must use computers located in public places (for example cybercafes and libraries) to access sensitive personal or business data or information, especially where passwords are required, make sure you disable or decline the ever present offer to "remember your password" by many browsers these days.
   Failure to do this will give the next user access to your personal information which may be tempting, even when there was never an intention to defraud.

Website Hosts and Email Providers
While sophisticated software abound which carry out tasks such as virus scanning, melaware and spyware detection etc, website hosts and email providers should go the extra mile by verifying the physical address of clients by sending a letter by post. Clients should be warned that inability to verify their addresses may lead to a locking up of the site or email address even after opening.

The extra cost may only be a postage stamp, an envelope and a small administrative charge. There must be legal framework for this type of decision however. With this, owners of fake websites should be traceable.

Public computers must disable any browser's request to have passwords remembered. Computer operating systems software must make the disabling option very visible on their software.

Long Term Measures to Stem and Discourage All Forms of Scamming.
Regarding greed and a criminal tendencies as the only motivation for scamming oversimplifies the issue, the same way as it does for software piracy or product counterfeiting. Very hardened scam artists may not necessarily be good programmers or website designers. Conversely, not all good programmers and web designers are necessarily scam artists
. So, these criminals will either have to employ professionals for their acts, or operate as a syndicate. This suggests the availability of idle hands ready to work for these criminals, who could be potential police informants.

We can learn from the way the Business Software Alliance (BSA) handles the issue of Software Piracy globally. Alongside enforcement, BSA works proactively to educate users on the dangers of software piracy, and even reward informants.

It is very unfortunate that many businesses whose interests are being threatened by scam artists are not forming an alliance to fight this menace the same way as BSA.

We already have private initiatives fighting scam artists way they know best. “Reverse scam”, activities eg “Spam killer”, “419 eater” “419 BAITER”, etc target scam artists and in some cases expose them.

As commendable as this may be, the overall effect on scamming is limited. We should all rather harness our efforts towards establishing and improving logistic and legal frameworks to locate, arrest, and prosecute scam artists, wherever they may be.

Beside the increasing use of credit cards in everyday business, it is very evident that commerce on the internet holds the future and the use of credit cards is the vehicle. Businesses in this industry therefore, should be in the vanguard of efforts at fighting these kinds of fraud.

Those involved in this practice are getting more sophisticated by the day. There is a serious doubt that law enforcing agencies in countries where these practices thrive are able to keep up with the developments.
A number of computer professionals have been arrested, only to be released after a long incarceration without charges, sometimes as a result of their innocence, or simply the inability of law enfortorcement agencies to establish the crime. There is need therefore for further training for these law enforcement agencies.

In addition, conscious efforts should be made to integrate computer professionals, who as idle hands, are engaged by these fraudsters from these countries, into the formal global computer industry by extending outsourcing contracts to them, thereby encouraging their cooperation with law enforcement agencies.

CONCLUSION
There is an urgent need to fight internet fraud and scams globally. Blocking out a country on account its reputation on scams and fraud will neither improve international trade, nor end the activities of these criminals. Stake holders must unite in a global effort to end these types of fraud before it expands out of control. Internet users must also exercise caution when making purchases or making payments for goods and services over the internet.