How Do Money Transfer, Local Representative Scams Work

How Do the Payment Scams Work
(Payment Manager, Payment Processor, Local Representative, Bookkeeper, Accountant)

The Step-by-Step Anatomy of a Fake Payment Scam

If you've wondered just how these scams unfold, and what happens at each stage, here is the step by step description of the typical fake / counterfeit check / cheque scam:

  1. The scammers get your name and email address, physical address or phone number.
    Maybe they found your email address somewhere online.  Maybe you entered a "sweepstakes" or win a car, tv or free vacation in a box at the shopping mall.  Somehow they got hold of your email address or other means to contact you.
     

  2. Scammers write up a scam email or letter.
    Scammers create a fake job listing that they email to you, or post on a job website.  Typically, the job description includes titles like "Payment officer", "transfer manager", or local representative and requires that you receive checks and payments, deposit them into your bank account and wire some or all of the money back to the the scammer. The are constant changing the scams, changing names of people, companies, job titles etc. so when one scam no longer works, they can start a new one.
     

  3. You receive the email, letter or call
    The emails or letters are sent by people working together in a fraud cell. The cell is a part of a fraud ring that consists of a few members who work under direction of a fraud ring leader. If you saw them at work, you would see a crowded room with laptop computers and cell phones. They're now waiting for you to contact them, so they can begin to con you.
     

  4. You contact the scammers and give them personal information
    After you answer the first letter, they will write back asking for your personal identification. Sometimes, they ask for this information in the first email. This is used to steal your identity. They steal your identity by using your personal banking information, passport number, driver's license number, or credit card information. They don't care whether your credit is good or bad. They use this information to:

    1. open accounts you don't know about.

    2. buy things on these credit cards, in your name and then do not pay for them.

    3. take out loans in your name and do not repay them.

    4. commit crimes using your name and leave you responsible.

    5. Felons may even get jobs using your name.

    Creditors will contact you asking for their money. Police will contact you and may even detain you for questioning to determine if you are telling the truth.

    If you have sent them a copy of your passport, birth certificate, identity card, or driver's license; if you have sent them your banking information or your credit card information, please go HERE immediately for steps to protect your identity.
     

  5. They send you counterfeit checks
    They send you checks, cashiers checks, travelers checks, money orders and bank transfers (all are counterfeit) and tell you to cash it and Western Union or MoneyGram wire most of it back to them.
    Can't I just cash the checks and see if they clear?
    ABSOLUTELY NOT! The check or money order you have received is certain to be COUNTERFEIT or stolen. If you cash it, you will be responsible for the entire amount.  You may also be arrested for fraud. You can go to this website and verify the routing number on the check and get the bank's phone number, then call the bank to verify that the account is real and the check is real
     

  6. But they said I have to Western Union or Money Gram them part of the check right away
    If you did, you cannot get your money back. Once the funds are sent through Western Union or a MoneyGram and picked up at the other end, there is no trail to follow. You don't even know to where you sent the money or who actually picked it up. The funds you sent can be picked up at any Western Union or MoneyGram office anywhere in the world, by anyone who supplies the name and identification on it, which is usually made up / false. The criminals walked out the door of the office with your money and disappeared, never to be seen again. 

  7. So what do I do if I receive a check?
    Contact your State Attorney General - They will want to examine the check. Your bank, on the other hand, will usually be of no help at all.

Click here for steps to take to protect yourself if you have replied to a scammer.

 And you might what to read this email from an actual victim telling what happens if you cash the check.

Examples of scam emails

Would you like to see actual examples of scam emails? 

And to see some of the names they use or confirm that one you received is a fake, check these pages:

Besides email, how to the scammers contact their victims?

We're discussing AFF scam emails, but the scammers will use any method to reach their victims, including:

  • Mail / Post
  • Fax
  • Phone
  • Chat rooms
  • Dating web sites
  • Matchmaking web sites
  • Mobile phone SMS (new)
  • Internet phone - VOIP (new)
  • Internet gaming (new)
  • Personal introduction
  • Web sites publishing general business contacts or for specific industries
  • Call centre / boiler-room
  • Door-to-door - in countries were an internet connection or sometimes phone or fax connections are not yet common circumstances.

If you would like a (more) detailed explanation of how the scammers in Nigeria operate, see this page.

More information: