Advance Fee Fraud
Advance fee frauds ask investors to pay a fee up front to receive proceeds. The advance payment may be described as a fee, tax, commission, validation fee, or repayment of a margin loan, but the premise is always the same – you need to give money to get money.
Advanced fee frauds are common in relationship investment scams, where scammers engage in a long con, building trust through friendship or a romantic connection and convincing targets to put money into phony investments. Using realistic account interfaces appearing to generate significant returns, scammers convince investors to send more and more money. When the investor asks to withdraw the funds, the scam often shifts to an advanced fee fraud where the investor is told to deposit funds to get the funds released. Any additional funds sent by the investor only compound what has already been lost through prior transfers. Victims are often convinced to pay more to unlock the account than any amount they previously deposited.
Scammers often target prior victims of fraud and may impersonate government regulators or other organizations, claiming that the victim’s funds have or can be recovered. Often referred to as a reload scam, these are another type of advanced fee fraud where victims are asked to pay advanced fees to supposedly obtain recovery.
Other advance fee frauds involve fraudsters requiring payment to supposedly receive money for online work, lottery winnings, found money, or many other so-called opportunities.
Additional Information
Updated Investor Alert: Be on the Lookout for Advance Fee Fraud
