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Consumer Library | Maine Bureau of Financial Institutions
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CSU Extension - Adams County
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Advance-fee scam
An advance-fee scam is a form of fraud and is a common confidence trick. The scam typically involves promising the victim a significant share of a large sum of money, in return for a small up-front payment, which the fraudster claims will be used to obtain the large sum. If a victim makes the payment, the fraudster either invents a series of further fees for the victim to pay or simply disappears.
The Federal Bureau of Investigation (FBI) states that "An advance fee scheme occurs when the victim pays money to someone in anticipation of receiving something of greater value – such as a loan, contract, investment, or gift - and then receives little or nothing in return." There are many variations of this type of scam, including the Nigerian prince scam, also known as a 419 scam.
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