Scam Evolution: From the “Nigerian Prince” to the “Rich Grandma”
An old scam gets a facelift and attacks with double force
The Nigerian Prince Scam, also known as the "419 scam", named after section 419 of the Nigerian Criminal Code responsible for fraud, or "advance fee fraud," is one of the most infamous and pervasive online scams in the world. It has been around since the 1990s, and it continues to claim victims to this day.
The Nigerian Prince scam typically begins with an unsolicited email or a social media message from someone claiming to be a wealthy Nigerian prince or a government official. They will explain that they need help to move a large sum of money out of the country and offer to pay a percentage of the funds in exchange for assistance. The catch is that they will ask to provide an upfront payment to cover various fees, such as legal fees, taxes, or bribes. They will disappear once victims send them the money, leaving them with nothing. There is always pressure to act as quickly as possible. Their emails and messages are often full of grammar and spelling mistakes.
This scam was so pervasive that it became a meme. As people got more educated, fraudsters found a way to spin the same tale in a new way and invented a rich grandma scam. In this scheme, young people are contacted on social media with messages from their rich grandmothers that want to share their wealth. The grandma, her relative, or their lawyer tells a believable story about coming into a lot of money through a lottery, selling an estate, or inheritance.
The loving grandma wants to give a victim a good amount of money, but taxes or lawyer’s fees must be paid first. Often victims receive checks from their grandma that make them believe that the situation is real. They are asked to buy gift cards or wire money to cover the fees. The checks inevitably bounce and the victim is left with a huge loss. In the recent case of a rich grandma scam, a victim lost $15,000.
The main distinction of the rich grandma scam is that the targeted victims are younger people. The Better Business Bureau reported in 2020 that adults of age 18-24 were at the highest scam risk. Fraudsters contact them on social media using the best way to reach this audience. They send them fake checks which are often an unfamiliar way of transferring money for younger generations. The Nigerian Prince scam uses not just a desire to make money fast but also to help someone in need, while the Rich Grandma scam prays on people with no strong ties to their family. American news media reported that the average monetary loss in a Nigerian Prince scam is $2,133 in 2019.
What to Do if You Were Scammed?
Report the transaction to the bank or a payment system immediately
Zelle: Customer Support, report a scam
PayPal: report fraud
Cash App: Customer Support
Venmo: Customer Support
Submit additional reports to these websites:
If you paid a scammer using gift cards, try to notify the company that owns the card. In rare situations, they can refund money.
