Identity Theft and the Nigerian Banking Scheme

Article Added October 6th, 2006

Throughout the years, there have been many schemes and scams, but few have had the staying power, or achieved the legendary status, of the Nigerian banking scheme. Even though this time tested scam predates the internet by many decades, it has reared its ugly head in digital form, invading email boxes as it once invaded their brick and mortar counterparts.

For those who are not familiar with the specifics of the Nigerian banking scheme, here is a quick rundown.

The writer or emailer contacts the victim, claiming to be a member of the ruling family of Nigeria, a high government official or even a prince or king. This purported royal family member claims to be heir to a vast fortune, often totaling many millions of dollars, but he or she needs help to get it out of the country.

All they need in order to capture this vast fortune is the bank account number of a contact in the United States, and you are the lucky person they have contacted. In exchange for the use of your bank account, the person on the other end of this scheme promises to share the wealth and provide a reward which often runs into six or even seven figures.

The problem, of course, is that the person on the other end of the email communication is not a king, or even a prince. Rather he or she is a scam artist, probably sitting at an internet café or similar boiler room in Nigeria. Those who fall victim to this common scheme end up with nothing but an empty bank account, and there is often little law enforcement officials can do to recover the money that has been lost.

A new twist on this old scheme is for the scammer to add an identity theft component, using the information provided by the victim to open bank accounts, take out credit card loans and otherwise wreak financial havoc on the financial life of the victim. Unlike the one time loss of the traditional Nigerian scheme, the fallout from this type of identity theft can last for months or even years, as it is often difficult for creditors and potential lenders to tell the difference between legitimate transactions and fraudulent ones.

Fortunately, however, there are a number of steps consumers can take to avoid falling victim to the Nigerian banking scheme and similar attempts at identity theft. One of the simplest strategies is simply to become educated and aware of the existence of these schemes. The more you know about the current scams and schemes making their way across the internet, the better able you will be to protect yourself from falling victim.

In addition, simply following the old rule that if it sounds too good to be true it probably is will be a smart strategy for all internet users to follow. Simply knowing how to protect yourself is one of the best ways to avoid becoming a victim of this serious crime.