Advance fee fraud “419” and investor confidence in the economies of sub‐Saharan African (SSA)
| Published date | 02 January 2009 |
| Pages | 67-79 |
| DOI | https://doi.org/10.1108/13590790910924975 |
| Date | 02 January 2009 |
| Author | Edward Fokuoh Ampratwum |
Advance fee fraud “419” and
investor confidence in the
economies of sub-Saharan
African (SSA)
Edward Fokuoh Ampratwum
Fitzwilliam College, University of Cambridge, Cambridge, UK
Abstract
Purpose – Though many articles have been produced warning people of the inherent dangers of
responding to this fraud, very little work has been done on the impact of the advance fee fraud on
investment and overall economic development of countries in sub-Saharan Africa. This paper aims to
examine the nature and causes of the Nigerian “419” fraud.
Design/methodology/approach – Besides, underscoring the role of the political and historical
situation of the sub-region in exacerbating the fraud, the paper situates the discussion within the
broader context of organized crimes perpetuated by Africans in Africa or elsewhere in the world.
Findings – A relationship exists between crime rate and development and thus there is a need for
transnational collaborative efforts in controlling and preventing these crimes. However, the gap
between the economic fundamentals and investor confidence is puzzling.
Originality/value – The paper examines the link between perception of crime in Nigeria and Africa
as a whole and the rate of investment flow to the continent.
Keywords Fraud, Money laundering, Nigeria, Economicdevelopment
Paper type Research paper
[...] one can only wonder at the greed and stupidity of people prepared to part with money in
response to an unsolicited letter, offering them millions of dollars, from a stranger on the
other side of the world.
Adam Graycar
Throughout history, enterprisingly unscrupulous individuals have devised new ways of
tricking gullible people into parting with their money, however; one of the most recent
examples of deceptive conduct that has emerged internationally and has been carried out on a
wide scale by a group of primarily Nigerian nationals is the[1] advance fee fraud[2]. It involves
a variant of the traditional “advance fee” scheme and has been used to defraud anyone in the
world who is willing to succumb to the temptation offered to make some “quick money”. It has
been estimated that some US $5 billion has been stolen worldwide through the use of these
schemes over the past decade (Adam Graycar in Smith et al., 1999, p. 1).
Though many articles have been churned out on the internet warning people of the
inherent danger of responding to this fraud (see links below)[3], very little work has
been done on the impact of the advanced fee fraud on the economic development of
“culprit” countries, as this particular fraud type is given little official attention and
analysis (Peel, 2006)[4]. Many of the crimes go unreported. Indeed, “victims are seen as
deserving ridicule rather than sympathy ... and at best are hopelessly greedy, or at
worst prepared to abet serious criminal offences such as looting public money from a
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
Advance fee
fraud “419”
67
Journal of Financial Crime
Vol. 16 No. 1, 2009
pp. 67-79
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790910924975
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