If you have any information about a potential fraud involving the use of the Federal Reserve’s name, notify us at report.fraud@ny.frb.org.

SIPC Advises Investors to Ignore E-mail-Based "Phishing" Schemes for Personal Financial Information
February 4, 2004

Federal Bank, Thrift and Credit Union Regulatory Agencies Provide Brochure with Information on Internet "Phishing"
September 8, 2004

Nigerian Funds Placement Schemes
A number of scams involve persons purporting to be high-ranking officials in the Nigerian government. These scam artists usually contact the unsuspecting victim via e-mail and request his assistance in keeping a large amount of government funds out of the hands of corrupt agents or entities.

The victim is then asked to supply his account number and is told that a large sum of cash will soon be deposited. In exchange, a portion of the deposit is promised to the victim as payment for the assistance. The victim is told that the entire transaction is legal and highly confidential. Neither is true.

Sample Fraud ›› (jpg - 98 kb)

Nigerian Black Money Scams
The Federal Reserve Bank of New York is aware of a Nigerian advance fee scheme, commonly referred to as a black money scam. Nigerian advanced fee schemes usually involve the payment of fees, taxes or bribes to receive a percentage of funds to be moved out of Nigeria. In this variation, the scam artist tells the victim that it was necessary to dye the money black in order to smuggle it out of the country. The victim is then shown a suitcase or trunk containing currency-sized pieces of black paper. The victim is told that in order to clean the currency, it must be washed with special chemicals that will purportedly remove the dye without damaging it. The cost of the chemicals, however, is substantial and the victim is asked to provide payment for the purchase up front.

In order to prove the truthfulness of the circumstances, the scam artist offers to demonstrate the efficacy of the process with a small sample of the chemical. Accordingly, the victim is allowed to select some paper from the trunk. The paper is then cleaned with the chemical, revealing a Federal Reserve note. The demonstration is accomplished by slight of hand wherein the black paper is exchanged for a legitimate U.S. currency note that is covered with a substance easily removed by the cleaning solution.

Sample Fraud 1 ›› (jpg - 37 kb)
Sample Fraud 2 ›› (jpg - 34 kb)
Sample Fraud 3 ›› (jpg - 34 kb)