June 17, 2004

Turning The Tables On E-Mail Swindlers

By SETH SCHIESEL

ON the face of it, everyone on the Internet should be rich by now.

After all, you've almost surely received e-mail from at least one intriguing stranger in a far-off land offering fabulous riches if only you will help recover some lost fortune. It might be $25 million spirited away during the fall of an obscure African regime. Or $400 million in oil lucre seized by one of Saddam Hussein's sons. All you, dear friend, need provide is a helping hand (ideally your bank account) and a few small fees, and perhaps a quarter of the money will be yours.

Of course, there is no fortune to be had. The only money changing hands will be yours, given to one of the thousands of so-called advance fee fraud artists haunting the Internet. Hailing largely from Nigeria and other West African countries, the ''419'' con artists -- so known for a section of the Nigerian legal code -- have bilked the naïve and the greedy out of hundreds of millions of dollars, according to law enforcement estimates. Some victims have traveled overseas to meet their supposed business partners, only to be robbed or kidnapped.

As a page at the Web site of the Nigerian Embassy in Washington warns, ''Don't be fooled! Many have lost money!! If it sounds too good to be true, it is not true!!!''

Now, however, an ad hoc militia of self-styled counterscammers on several continents is taking the fight directly to the thieves. Aiming to outwit the swindlers, they invent elaborate and often outrageous identities (Venus de Milo, Lord Darth Vader) under which they engage the con men, trying to humiliate them and, more important, waste the grifters' time and resources.

They then chronicle the exploits, documented by elaborate e-mail exchanges, at sites like Scamorama (www.scamorama.com). They also gather financial and technical information about the fraud artists, who are sometimes part of broader criminal networks, and refer their findings to law enforcement officials. Some of the antifraud efforts even appear to straddle the bounds of legality: disabling fake bank Web sites used to dupe the unwitting, or breaking into swindlers' e-mail accounts to warn victims already on the hook.

Part vigilante patrol, part neighborhood watch, part comedy troupe, the counterscammers are trying to beat the thieves of the Internet at their own game. And they certainly appear to enjoy doing it.

''There are all these people in America getting robbed blind, and what I'm doing is trying to stop it,'' one of them, a 48-year-old computer technician in Melbourne , Australia , who conducts some of his exploits under the pseudonym Stuart de Baker Hawke, said in a telephone interview. ''I think of myself as an Internet-security type person.'' The Australian -- speaking, like several others involved in fraud baiting, on the condition that his real name not be published -- said that a personal specialty was figuring out passwords for Web-based e-mail accounts used by con artists.

But most of those involved seem content with spinning fabulous yarns that turn the tables on the perpetrators -- in rare cases, even to the point of getting swindlers to send them money.

In one escapade recounted at Scamorama, a fraud baiter posing as one Pierpont Emanuel Weaver, a wealthy businessman, appeared to persuade a con man in Ghana in 2002 to send almost $100 worth of gold to Indiana -- for ''testing purposes as my chemist requires'' -- after being asked to put up $1.8 million for a share in a gold fortune. In other cases, swindlers are tricked into posing for pictures holding self-mocking signs, pictures then posted online. Or they are led to travel hundreds of miles to pick up a payment, only to come up empty-handed.

A 47-year-old manufacturing executive in Lincoln , Neb. , said he had been engaged in such pranks for almost three years. ''I've had many, many good laughs at their expense, and have spent nothing but time,'' he said. ''They have spent countless hours creating fake documents, obtaining photos of themselves holding funny signs, running to the Western Union miles away from where they live to obtain money which I never actually sent, and printing out counterfeit checks to send me.'' As for his motivation, he said, ''Hopefully, along the way, I've diverted enough of their time and resources to keep them from successfully scamming at least one hapless (albeit, most likely, greedy) victim.''

And while not every success story can be substantiated, some law enforcement officials say the fraud baiters had proved to be crucial allies.

''I personally feel that we wouldn't have had the same effect with our initiative if we hadn't combined forces with the international scam-baiting community,'' Rian Visser, an inspector and electronic-fraud investigator for the South African Police Service, said in a telephone interview. ''I can't see any law enforcement agency not making use of them. They are on the front lines, and they have information that is very valuable.''

In March, Mr. Visser established www.419legal.org as a clearinghouse for information about advance-fee fraud and as a launching pad for attacking fraud artists. (Mr. Visser said his government's approval process for creating an official site would have taken months.)

Since March, he said, the fraud baiters have provided information that has led to seven arrests in South Africa and the seizure of property used by West African expatriates to conduct fraud. Last month, he said, they provided information that led to the closing of a fake South African embassy in Amsterdam that fraud artists had established to lend credence to their operations. One Saudi victim had lost $100,000 to that group, Mr. Visser said. He added that when the fraud baiters provide reliable information about fraud in unrelated countries, he relays the tips through Interpol.

Mr. Visser estimated that such schemes reap more than $100 million a year worldwide. Fraud baiters say that most victims lose around $3,000, but some far more.

Arrest and prosecution are difficult because of the international nature of the operations. But in January, the Dutch national police arrested 52 suspected con men in Amsterdam , most of them West African. Internet fraud baiters claim to have provided information that helped lead to those arrests.

And with the geography-erasing power of the Internet, it is not just major national police forces who are working with the fraud baiters. For instance, Karl J. Dailey, the sheriff of Dawes County , Neb. , has also joined the effort.

''It went from snail mail to faxes to e-mails,'' Sheriff Dailey said in a telephone interview from his office in Chadron , Neb. , referring to the initial pitches sent by con artists to people in his county. After local residents started asking him about the schemes, he said, he got involved with the fraud baiters at Artists Against 419 (www.aa419.org) and even helped take down a fake bank Web site. Now, he uses his local radio show to help warn people about advance-fee fraud.

Sheriff Dailey pointed out that the legality of activities like cracking into e-mail accounts and shutting down Web sites, even patently fraudulent ones, might be dubious at best. But he echoed Mr. Visser in lauding the baiters. ''It's one of these areas that's gray,'' Sheriff Dailey said, ''but I think it's serving a very useful purpose because the more miserable we can make these knuckleheads, the better. I'm all for it. More power to them and I'll do anything I can to help them, within the law.''

A few of the fraud baiters appear to be motivated by racism (most of the con artists appear to be black Africans, operating either in Africa or in Europe ). But most are not.

''It's not the Nigerian people we're talking about,'' said the Australian operating as Stuart de Baker Hawke. ''We don't care where the scammers are from or what color they are. We care about their activities.''

Fraud baiters and law enforcement officials in several countries said that 419 con artists were often associated with broader, often violent criminal groups. For that reason, they all encourage extreme caution when baiting. For instance, never use your real name, they say. Some officials discourage the practice altogether.

''We advise people absolutely not to respond; just ignore them,'' said a spokeswoman for the National Criminal Intelligence Service in Britain . ''The way to deal with these scams is not to chase them.''

But chase some do. Looking ahead, some fraud baiters said they might succeed in substantially eradicating such schemes, at least on the Internet. One of those involved in fighting the con artists, a 48-year-old winery technician in central California, pointed to work on software tools called auto-baiters, meant to flood fraud artists with what appear to be real leads. ''Hopefully someone will take it over and do it on an industrial scale,'' he said. ''We want the scammers to spend so much time on fake responses that they can't figure out which ones are real.''

But others fear that in the battle to protect naïve Internet users from themselves, human nature may not work in their favor.

''What was it that P.T. Barnum said about a sucker every minute?'' the Australian baiter said. ''People have been getting scammed forever. Greed endures.''

Sentinels
Many sites serve as clearinghouses for information about efforts to outwit online fraud artists, and recount their success in doing so.

www.scamorama.com
Perhaps the most extensive archive of completed fraud-bait operations.

www.419eater.com
Well-stocked portal for fraud-baiters, with message boards.

www.b2g4.com/boards/board.cgi?user=akerenx
Message board for fraud-baiters.

www.419legal.org
Run by a South African police inspector.

www.aa419.org
Called Artists against 419, this site hijacks graphics from fraudulent Web sites to waste the schemers' bandwidth.

www.scamvictimsunited.com
A site for victims of many kinds of fraud, including the 419 variety.

Psychology
From Greed to Sheepishness: Analyzing the Victim

THE advance-fee fraud is an art form that has evolved over decades, originating in postal mail. The typical premise is that there is a big cache of cash (or gold or diamonds) in some remote country and that an innocent party (the fraud artist) needs someone trustworthy in another nation (you) to gain access to it. For your help, you will receive millions of dollars.

''What happens next is the most crucial point in the fraud and can take a number of directions,'' a 1997 State Department report said. ''A victim will be advised that the deal is near completion, however, an emergency has arisen and money is needed to pay an unforeseen government fee or tax before the money can be released. If the fee is paid, the criminals will come up with another 'problem' that requires immediate payment by the victim. Each 'problem' is supported by 'official' documentation.''

So who falls for this? It's all about the psychology of greed. In fact, some victims want so badly to believe that they are going to profit in the end that they ignore explicit personal warnings sent to them by fraud-baiters.

When they finally realize the offer is fraudulent, some victims are reluctant to turn to law enforcement agencies because they essentially agreed to do something illegal. After all, many of the schemes are based on moving money while evading customs duties.

''Right there, once the person engages in this activity with a suspect, they are sort of a co-conspirator in a crime that doesn't occur,'' said Stephen Iannucci, assistant special agent in charge of the Secret Service's New York field office. ''Think about it for a second. They were willing to enable a foreigner to avoid U.S. laws. So the tendency in law enforcement is we're starting to feel less and less sorry for these victims.''

He said officials were nonetheless still working to stop such operations, largely because the con artists are often part of broader criminal groups. Seth Schiesel