Advance fee scams are a common scam where you are ask to pay an upfront fee for a service or product.
How the Scam Works
Scammer promises a victim a substantial profit, but only if the victim pays an upfront fee in advance.
Once the fee is paid, the scammer drums up additional requests for more money, often under the pretense of unexpected complications.
Common reasons scammers give victims for the need of an upfront payment include taxes, legals cost, and processing.
Warning Signs
- Unsolicited contact: You receive an unexpected text message, email, or phone call offering an investment, educational, or job opportunity.
- Urgency: Pressure to act quickly, trying to prevent you from seeking advice or thinking it through.
- Secrecy: Pressure to keep transaction confidential.
- Dishonesty: Pressure to lie to your financial institution about why you are withdrawing, wiring, or otherwise transferring your personal funds.
- Early Testing: You are allowed to withdraw small profits early in the fraud to build trust in the scam so that the victim will invest more money. Later, you will be unable to withdraw any further funds.
- Offer of unlikely returns: Scams often promise lucrative returns. These returns are sometimes measured in hours or days rather than months or years.
- Profits guaranteed: Claims that a return or investment is guaranteed. No investment is guaranteed, and legitimate investment professionals will not make these statements.
- Request for unusual payment methods: Scammer requests payment in cryptocurrency, cash, gift cards, gold, or other untraceable means.
Advance Fee Scam Checklist
- Did you receive the offer out of the blue (text, email, call, messaging app)?
- Does the offer sound too good to be true (quick lucrative returns or guarantees)?
- Are you being asked to pay an upfront fee before receiving your profits?
- Is there pressure to act fast?
- Is there pressure to keep the transaction secret or conceal the truth from your financial institution about why you want to move the funds?
- Were you able to make small withdrawals at the beginning of your investment?
- Are you being asked to make your investment using cryptocurrency?
- Are you being asked to send money to a foreign bank account?
If you answered yes to any of these questions, you may be a victim of a scam.