Fraud remains one of the most common and damaging offences affecting individuals, families, and businesses in Nigeria. While people often talk about “scams,” it is important to understand that a scam is not a separate offence, it is simply the method, trick, or deceptive process used to carry out the crime of fraud.
This article explains how fraud works, focusing specifically on the scam processes that enable it, the relevant laws, and how the public can protect themselves from these specific types of deception.
Important Note: Scope of This Guide
Fraud comes in many forms, and not all fraud is the same. This guide specifically focuses on scam-related fraud, which refers to the deceptive processes designed to trick individuals into giving money, property, or sensitive information.
It is important to clarify that this article does not cover other types of fraud:
Government or Public Sector Fraud: We are not discussing cases where public officials misappropriate funds, manipulate budgets, or engage in embezzlement within government ministries or agencies.
Corporate and Organizational Fraud: This guide does not address internal corporate fraud, such as employees stealing company funds, accounting manipulations, or insider trading.
Specialized or Complex Financial Crimes: Cases like large-scale money laundering or institutional corruption are outside this scope.
Our focus is exclusively on scam-related fraud processes that target individuals and members of the public, which rely on deception, emotional manipulation, and fabricated scenarios.
1. What Is Fraud and How Do Scam Processes Fit In?
Many people do not realise that what they call a “scam” is actually the tactic used to achieve fraud. Legally, fraud and scam are not the same.
Fraud (The Crime): Fraud is the legally recognized criminal act. It involves intentional deception to unlawfully obtain money, property, or advantage. Fraud is criminalized under Nigerian laws, including the Criminal Code, Penal Code, Cybercrimes Act, EFCC Act, and Advance Fee Fraud Act.
Scam (The Method): A scam is not a legal term. It describes the scheme, trick, method, or deceptive pathway the fraudster uses to trick the victim.
Every scam is fraud, but not every fraud is a scam. These scam processes lead directly to the offence of fraud.
2. Common Scam Processes Used to Commit Fraud in Nigeria
Below are the common scam methods or tactics used to execute the crime of fraud against individuals:
a. Online Scam Processes (Cyber Fraud)
Online deception is one of the fastest-growing avenues through which fraud is committed, taking advantage of social media, messaging apps, and digital payment channels.
Fake Investment Platforms: These schemes promise unusually high returns, display fake testimonials, and often disappear after collecting deposits. The scam process is the presentation of a "profitable investment," while the underlying offence is fraud because real returns were never intended.
Hacked Social Media Accounts: Fraudsters impersonate the account owner to request money, advertise fake products, or send suspicious links. The communication is a scam process used to deceive victims into parting with money.
“Urgent Help” Messages: This method preys on emotions, often using hacked numbers or cloned WhatsApp profiles to send messages claiming the user is stranded or needs urgent help with bills. The urgency is engineered to suspend the victim’s judgment.
Fake Business Pages and Impersonation: Fraudulent online shops are created, posting attractive products at low prices and using stolen pictures and reviews. Victims are often blocked immediately after payment, meaning the entire pathway was a scam to defraud them.
b. Property and Real Estate Fraud (Deceptive Processes)
Property fraud is one of the most financially devastating forms of deception. Fraudsters use carefully designed scam processes to mislead buyers, tenants, and investors.
Multiple Sale of the Same Property: The fraudster shows the same land or house to several prospective buyers, issues identical or modified receipts, and collects deposits from multiple victims.
Fake Agents Collecting “Inspection Fees”: A fake agent advertises an attractive property, asking prospective tenants to pay “inspection fees,” “registration fees,” or “consultation fees”. The agent then disappears or continues scheduling endless fake appointments.
Sellers Using Forged or Fraudulent Land Documents: Fraudsters generate fake surveys, forged Certificates of Occupancy (C of O), or manipulated land receipts. The scam method is the presentation of forged paperwork that appears legitimate.
Developers Selling Property Under Government Dispute: Developers sell plots or units in estates still under government acquisition or entangled in litigation, often using exaggerated promotional claims. The fraud occurs when buyers pay for land the developer has no lawful right to sell.
c. Job and Employment Scams (Deceptive Recruitment Processes)
Fraudsters exploit widespread unemployment by creating recruitment processes designed solely to extract money or personal data.
Fake Job Adverts with “Application Fees”: Job postings require applicants to pay a “processing fee,” “application fee,” or “shortlisting fee” for a job that never existed. The fraud is complete once the victim pays under false pretences.
Unrealistic Salaries and Too-Good-To-Be-True Offers: Offers that promise extremely high salaries for entry-level roles are used to lower the victim’s guard before introducing fee requests or asking for sensitive personal data.
Fake Recruitment Agencies: Fraudsters set up entire “consulting firms” with beautiful websites and rented short-term office spaces to collect registration, training, or assessment fees.
Scam Interviews and Identity Theft: The "interview process" is used as a scam method to harvest sensitive personal information such as NIN, BVN, or ATM card details.
d. Banking and OTP Deception
These scams use social engineering and fake digital platforms to trick victims into giving away sensitive banking information.
Fake Customer Care Portals: Scammers create fake websites or social media accounts that look like legitimate bank customer-care pages to trick victims into submitting ATM card details or OTPs.
“BVN Update” Messages: SMS or emails claiming an account will be blocked unless the BVN is "updated immediately" are sent, often leading to phishing websites.
Fake Alert Notifications: Scammers generate fake credit alerts to pressure victims into releasing goods or refunding "excess payments".
OTP Harvesting: Scammers pose as bank staff or online sellers, claiming the One-Time Password (OTP) is needed to “verify” a process. Your bank will never ask for your OTP. The fraud is completed once the victim’s account is accessed or drained.
e. Relationship / Marriage Fraud
This often appears as emotional manipulation or deceit designed purely to extract money, gifts, or long-term financial support. The scam lies in the emotional grooming, and the fraud occurs when the victim is induced to transfer money under false pretences.
Romance Scams: The fraudster builds emotional trust and invents emergencies such as sudden illness, unpaid rent, or travel expenses to convince the victim to send money.
Marriage Deceit for Financial Gain: Individuals pretend to seek genuine marriage but conceal critical information (like existing marriages or insolvency) to manipulate victims into funding lavish weddings or business ventures.
Extortion After Relationship Intimacy: Money is demanded in exchange for silence, backed by threats to release private chats, photos, or videos.
3. Red Flags You Must Never Ignore
Recognizing these red flags helps detect the scam process before it results in fraud:
Requests for urgent payments or pressure tactics like "offer expires today".
Deals with no written agreement or refusal to provide documentation.
A deal that sounds too good to be true (unrealistic salaries, massive returns, low property prices).
Requests for sensitive data like OTP or BVN from unknown numbers.
Discrepancies in names, email addresses, phone numbers, or documentation.
A "professional" who avoids calls or physical meetings or refuses to provide valid identification.
Job offers requiring payment.
High-pressure tactics that create artificial scarcity or urgency.
4. How Nigerian Law Protects You
Nigeria has established a strong legal framework to protect individuals from deception and financial loss, criminalizing both the scam method and the underlying fraud.
The legal framework criminalizes the underlying fraud, including the various scam methods used to achieve it:
The Cybercrimes (Prohibition, Prevention, etc.) Act 2015: Addresses online fraud, identity theft, phishing, OTP harvesting, online impersonation, and fake online platforms.
Criminal Code / Penal Code: Criminalize obtaining by false pretence, fraudulent representation, forgery, impersonation, and stealing.
Advance Fee Fraud Act: Specifically addresses deceptive proposals, using false identity, and online or email-based scams ("419" offences).
EFCC Act: Empowers the Economic and Financial Crimes Commission (EFCC) to investigate and prosecute financial crimes, illicit funds, and major scams (online, property, investment).
Where to Report: Victims can report fraud to the EFCC (financial and investment-related fraud), the Nigerian Police (Force CID) (general fraud, impersonation, theft), NITDA (for data breaches), or the NCC (for telecom-related scams).
Victims can also pursue civil claims to recover money lost, property transferred, or damages.
5. How to Protect Yourself: Practical Steps
Preventing fraud begins with awareness, verification, and careful decision-making.
Verify Before You Transact: Check CAC registration, verify NIN, Tax ID, or business address, and conduct a land search at the registry. Call customer care numbers from official websites.
Insist on Proper Documentation: Never transact based on WhatsApp messages alone. Ensure contracts, receipts, and agreements are provided in writing.
Strengthen Digital Security: Never share OTP or BVN. Enable 2-factor authentication and strong passwords on all accounts. Avoid making payments through unknown links.
Avoid Upfront Fees: Legitimate employers and investment firms do not demand application, processing, or training fees in advance.
Seek Legal Guidance Early: Consult a lawyer before buying land, entering investment agreements, signing partnership deals, or transferring large sums. Legal due diligence prevents the fraudulent outcome.
6. What to Do If You’ve Already Been Scammed
If the scam process has already led to fraud, act quickly and decisively.
Preserve All Evidence: Gather and save screenshots of chats, receipts, account numbers, emails, and transaction confirmations.
Contact Your Bank Immediately: Notify your bank of unauthorized transactions and request a freeze or recall transfers immediately.
File a Report: File a report at the nearest Police station or EFCC office. Report to NITDA for data breaches or NCC for telecom-related scams.
Seek Legal Assistance: A lawyer can help file petitions, recover funds, or pursue civil claims.
Avoid Direct Confrontation: Do not attempt to negotiate directly with the scammer, as this can escalate risk.
7. Final Thoughts: Stay Alert, Stay Informed
Fraud is the offence, but the scam is the process used to make the crime successful. Fraudsters are constantly evolving, developing new scam processes to target unsuspecting individuals. However, knowledge is your strongest defense. By staying vigilant, verifying information, conducting due diligence, and seeking legal guidance, you can significantly reduce your exposure to fraud in Nigeria.
Taking prompt action and consulting professionals can protect your finances, personal information, and peace of mind.