Blog

FraudCast Blog

Pondera FraudCast

Welcome to the Pondera FraudCast, a weekly blog where we post information on fraud trends, lessons learned from client engagements, and observations from our investigators in the field. We hope you’ll check back often to stay current with our efforts to combat fraud, waste, and abuse in large government programs.


Jon Coss - Blog Manager
Jon Coss - Blog Manager
Pondera's FraudCast Blog
Nigerian Email Fraud

Nigerian Email Fraud

In December, a 67-year-old Louisiana man was charged with 269 counts of money laundering for serving as a middle man in a Nigerian Internet scam. These scams, which everyone with an email account has encountered, promise large sums of money from inheritance or from a “prince” trying to leave the country in exchange for your financial information. Typically, they then require you to send money to release the funds and the operation continues to run into obstacles for which more money is required.

When I receive these emails, I’m always struck by just how ridiculous the stories are. They are so obviously fake that only the most naïve would lend them any credence. Given the sophistication of some of the fraudsters we combat at Pondera, I’ve always wondered why these clearly unsophisticated scammers can’t put out more believable emails.

After a bit of research on the subject, it turns out I’m the unsophisticated one. In fact, Microsoft Researcher Cormac Herley wrote a thought-provoking paper on the Nigerian Scams that concludes in part “By sending an email that repels all but the most gullible, the scammer gets the most promising marks to self-select, and tilts the true to false positive ratio in his favor.” So, like any good salesperson would do, the scammers are essentially feeding only the best leads into their pipeline and eliminating the poor leads early in the process so they don’t waste time pursuing them.

Pretty brilliant actually, if you’re in to despicable crimes. And the results show it. The FBI’s Crime Complaint Center says that over the past five years it has received an average of 280,000 complaints and, more importantly, it estimates that victims have lost over $4.6 billion in that time. In the most extreme cases, victims were lured to Nigeria, held against their will, and extorted for additional money.

If you’re interested in reading more about this, check out Mr. Herley’s paper at the link below:

https://www.microsoft.com/en-us/research/wp-content/uploads/2016/02/WhyFromNigeria.pdf

Comment (0)







b i u quote


Save Comment

Newsletter

Interested in viewing a live demonstration? Enter your email below and a member of our Sales Team will contact you to schedule a demo.

Email:

About Our Company

Pondera leverages advanced prediction algorithms and the power of cloud computing to combat fraud, waste, and abuse in government programs.



Get in touch

  • Sacramento Address: 80 Blue Ravine Road, Suite 250, Folsom, CA 95630

  • Phone: (916) 389-7800

  • Email: info@ponderasolutions.com