What is 419 Fraud? A Comprehensive Guide to the Scam

Definition & meaning

419 fraud, commonly known as the Nigerian scam, is a type of financial scam that typically begins with an unsolicited email. In this scam, the sender claims to need assistance in transferring a large sum of money, often promising a significant commission in return. Victims are usually asked to send money to cover fees related to the transfer or to provide sensitive personal information, such as bank account or credit card details. Once the victim complies, the scammer may disappear or misuse the provided information for further fraudulent activities.

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Real-world examples

Here are a couple of examples of abatement:

(hypothetical example) A user receives an email claiming to be from a wealthy individual in Nigeria who needs help transferring $10 million. In exchange for assistance, the user is promised a 20 percent commission. The scammer requests $5,000 to cover legal fees. After sending the money, the user never hears from the scammer again.

State-by-state differences

Examples of state differences (not exhaustive):

State Legal Approach
California Strict penalties for financial fraud.
New York Robust consumer protection laws against scams.
Texas Enforcement of identity theft laws.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Wire fraud Fraud involving electronic communications or transactions. 419 fraud is a specific type of wire fraud that often involves international scams.
Identity theft Unauthorized use of someone else's personal information. 419 fraud may lead to identity theft but is primarily focused on financial gain through deception.

What to do if this term applies to you

If you believe you have been targeted by 419 fraud, take the following steps:

  • Do not send any money or provide personal information.
  • Report the scam to your local law enforcement and the Federal Trade Commission (FTC).
  • Consider using legal forms from US Legal Forms to draft a complaint or report.
  • If you have already sent money, contact your bank immediately for assistance.

In complex cases, seeking professional legal help may be necessary.

Quick facts

Attribute Details
Common Name Nigerian scam
Typical Victim Individuals seeking financial opportunities
Potential Loss Thousands to millions of dollars
Legal Consequences Criminal charges against perpetrators

Key takeaways

FAQs

Do not respond or provide any information. Report it to the authorities.