|
|
 |
|
The perfect targets for advance fee frauds are businesses which are having serious difficulty obtaining finance from conventional sources. In times of recession many companies fall victim to this type of fraud. Millions of pounds are paid up-front to "financiers" and "deal brokers" but the loans fail to materialise and the fees are never refunded.
Often operating though a variety of third parties in different jurisdictions, advance-fee fraudsters adopt impressive and legitimate-sounding business names. In the end, after all their polished documentation, their lavish meetings in smart hotels, their promises and guarantees to complete the deal, there will always be just one problem - in order to release the multi-million dollar loan, the borrower will have to pay a few tens of thousands up front to trigger the loan (or cover the first year's interest charge) and indicate good faith. Of course, and the larger the loan, the greater the fee will be. Once the fee has been paid the fraudster disappears. These transactions may be engineered using solicitor's clients' accounts to add extra authenticity. It has been known for solicitors to knowingly participate in these frauds, whilst others are duped into co-operation.
Points to be especially cautious of when arranging finance from unconventional sources:
- Your dealings are conducted through agents, brokers or middlemen
- You are unable to verify documentation
- Correspondence and documentation is sent to you by fax message
- Meetings are arranged in hotels rather than established offices
- The deal involves complex or unusual financial instruments
- The purported principal is overseas and his identity cannot be revealed
- The agent is anxious to conclude the deal
- You are faced with a demand for an up-front payment or deposit to "unlock" the funds
|
|
