Advance-fee fraud
A scam that promises a large reward — inheritance, lottery win, business deal — in exchange for an upfront payment or series of fees that grow until the victim stops paying.
Also known as: upfront fee scam
Last reviewed: 1 June 2026
In advance-fee fraud, the victim is told they are entitled to a substantial sum — the release of a frozen inheritance, a lottery prize, a lucrative contract — but must first pay a fee to secure it. When they pay, new fees appear: taxes, legal costs, bribes, insurance. Each payment leads to another until the victim runs out of money or realises the reward never existed.
The '419 scam' (named after the Nigerian criminal-code section) is the best-known variant, typically involving an email from someone claiming to need help moving large funds out of a country. Modern advance-fee fraud spans email, social media, and messaging apps, and covers lottery wins, job offers, rental properties, and romantic relationships.
The underlying psychology is loss aversion — having already paid once, stopping feels like accepting a loss, so victims keep paying.
Examples
- An email claims you are the sole heir to a £5 million estate but must pay £500 in legal fees to release the funds — further fees keep appearing.
Sources
- SEC Investor.gov — Protect Your Money: How to Avoid Investment Scams — U.S. Securities and Exchange Commission
- FCA — ScamSmart — UK Financial Conduct Authority
- CFPB — Fraud and Scams — Consumer Financial Protection Bureau
- Scamwatch — Investment Scams — Australian Competition & Consumer Commission