According to Interpol, ‘West African Fraud’, such as the Nigerian 419 scams and black money schemes, are decreasing. However, international fraudsters recently lured several businessmen to South Africa with promises of lucrative deals. When the deals turn sour, victims often face kidnapping and ransom demands. It is worrying that South Africa is being used for such activities and that individuals are still taken in by these schemes.

‘West African fraud’

‘West African fraud’ is a term used by Interpol to describe the 419 frauds and black money scheme also known as ‘wash wash’. This is largely due to the geographical location where such schemes originate, as well as the nationality of many criminals who engage in such frauds.

The 419 frauds are named after the relevant section of the Nigerian criminal code which makes obtaining money under false pretences a criminal offence. The 419 scams are another name for advance fee fraud. While there are numerous variations, the scam operates as follows:

The target receives an unsolicited fax or letter (nowadays with counterfeit stamps) on a reputable institution’s letterhead containing either a money laundering or other illegal proposal. Unsuspecting companies or individuals are led to believe that they will earn a substantial commission in US dollars if they allow the use of their foreign bank account to deposit the alleged funds from Nigeria. The letters explain that the money is from a delayed or inflated approved government contract payment for foreign companies which later abandoned repayment claims. Having expressed an interest, requests are then made for signed and stamped blank company letter-headed paper, blank proforma invoices, postal addresses and bank details such as account numbers, telephone and fax details with the target instructed to keep the deal confidential at all processing stages. Upon receipt of the above, targets are then asked for some money upfront to pay for transfer costs, contract or attorney fees and certain fees allegedly demanded by the Central Bank of Nigeria. These claimed advance fees or taxes are what the fraudsters are actually interested in, as the alleged inflated or unclaimed foreign contract does not exist. When part of, or all the requested fees are paid, the target becomes a victim of the scam and more money is repeatedly asked to cover unforeseen sudden shortfalls. This cycle continues as long as the victim is unaware of the fraud or until communication is discontinued.

The 419 scheme is often varied with the ‘black money’ or what is sometimes called the ‘wash wash’ scheme. This involves the sale of ‘black money’, said to be US dollars covered in ink that were allegedly abandoned by US forces in Somalia and blackened as a security measure during shipping. After a convincing demonstration on how to clean the notes, the buyer is sold a large amount of notes with a cleaning solution. Those taken in by the scheme find themselves much the poorer with a bag of black paper.

Extent of the scam

However incredible it may seem, people are still being taken in by such scams. Last year a Johannesburg businessman allegedly lost R500000. Recent Interpol survey results indicate a decrease in 419 and black money scams, which is encouraging. Covering the four year period between 1995 and 1998, the survey was sent to all 117 heads of National Central Bureaux (NCBs). The questionnaire was based on 12 key questions to:

establish the extent of the problem and new trends;

identify the most affected countries or regions;

find out what is being done in the affected areas; and

capture new developments since the 1994 Interpol survey, such as new laws.

Although the response rate was low (35%), in total 47000 cases were reported between 1995 and 1998 (Figure 1). The survey results suggest that the number of 419 fraud letters has decreased significantly since 1995. But according to the 419 Coalition — a web-site set up to fight the Nigerian scams — each week an estimated 10000 Americans receive such letters. The decrease internationally is probably due to the role of the media and institutions such as banks in informing potential victims of these crimes.

Figure 1: Reported cases of West African Fraud

Source: Interpol survey, July 1999

Of the reported cases, only 3185 (7%) resulted in investigations. The reasons for these low figures are similar to other financial crimes: poor co-operation from victims — largely because the money lost was used in an illegal scheme — as well as the lack of legislation that sufficiently criminalises these schemes. Other problems which plague investigations of this nature are bank confidentiality and the fact that courts are less likely to empathise with victims if greed was the motivation for falling for the scam in the first place.

Arrests and convictions

The Interpol study recorded the numbers of arrests, prosecutions and convictions in those countries that responded to the survey. Some of these findings highlight the South African situation:

In total 229 arrests were reported to the survey. The highest number occurred in South Africa, which reported the arrest of 56 individuals. Most of these arrestees (22) came from Liberia, 12 were from Cameroon, 8 from Nigeria, 6 from South Africa, 3 from Rwanda, 3 from Congo and 2 from Zimbabwe.



In total 151 individuals were prosecuted. South African legislation uses the principles of fraud to prosecute such crimes as they appear in common law.



According to the survey only 33 individuals were convicted, representing a conviction rates of 21%. A further 27 people are awaiting trial, 2 have been acquitted and 9 cases were discharged by the courts. In South Africa, 12 people were convicted. Of these, 10 received custodial sentences and 3 were deported.



Total recorded losses were estimated at over $US38895000. South Africa’s losses were higher than those of any other country, estimated at US$20000000 (Figure 2).

Figure 2: Countries reporting losses > $ 1million


Source: Interpol survey, July 1999

Future challenges

Because they vary in nature, it is important to share information about the modus operandi of these fraudulent schemes. And since they are cross-border crimes, Interpol has an important role to play in this regard. Interpol’s special project on West African Fraud goes some way to address this. A standardised intelligence database has been established where crimes are recorded and analysed to produce statistics on types of offences, common features, modus operandi, individuals and aliases, use of the same addresses and identities as well as telephone numbers. All these details are cross-checked with existing information.

In an age of globalisation, shared information is the key to fighting international fraudsters. South Africa is being targeted by travelling offenders who commit fraud in one region and take refuge in another where they are immune from prosecution. Local law enforcement officials need to be vigilant of these threats and the challenges they pose.

Lala Camerer,
Institute for Security Studies