/ 11 August 2003

Reverse 419 scam reported in South Africa

In a variation on the notorious Nigerian 419 scam, it seems South African criminals are trying to prey on foreigners with fraudulent promises of instant wealth.

John Heron, an Australian resident, said on Monday he had received an e-mail from a South African firm calling itself ”Flash Fortune Lotto South Africa,” telling him he had won $1 600 000 (about R11 800 000) in a lottery. Heron had not entered a lottery.

The e-mail read: ”Your fund is now deposited with Finance and Security House insured in your name. Due to the mix-up of some numbers and names, we ask that you keep this award strictly from public notice until your claim has been processed and your money remitted to your account.”

The e-mail advised Heron to contact one Dan Holomisa of Royal Strides Finance Ltd in Johannesburg before August 17 or he would not receive his ”prize”.

The e-mail was signed by someone claiming to be ”Dr Walter Madiba”, giving a street address in Bryanston.

There is no such street in Bryanston, and the number ”Madiba” gave as his telephone number also does not exist. Royal Strides Finance does not appear in the telephone directory. Attempts to contact ”Dan Holomisa” were unsuccessful.

The e-mail concluded: ”Any breach of confidentiality on the part of the winners will result to disqualification. Please do not reply to this mail. Contact your claim manager directly.”

In a conventional 419 scam, a foreign national approaches a South African, usually by e-mail, with promises of a large commission if they assist in laundering a huge sum of money.

Once the South African has agreed to assist, they are often required to pay a ”fee” in connection with the transaction — after which they never hear from the fraudster again.

If Heron had accepted the ”lottery” offer as genuine, he would probably have been defrauded in a similar way. The frauds are called 419 scams because they violate section 419 of the Nigerian criminal code.

The police say while a plausible explanation is usually given, the criminals ”basically appeal to the intended victim’s greed.”

Some features of the scam include emphasis on the urgency of the matter, and the confidential nature of the transaction. – Sapa