Advance fee fraud is a type of scam where someone is promised money, goods, or services (usually of significant value) in exchange for an upfront payment (which often represents a fraction of the expected cost). The fraudster typically claims that this advance fee is required to cover administrative costs, taxes, or other expenses. Once the victim pays the fee, the scammer either disappears or continues to ask for additional payments under various pretences, without ever delivering the promised reward.

There are several common variations of the advance fee scam that can help to illustrate how this type of fraud works:

• Lottery sweepstake or prize draw fraud scams: Victims are informed they have won a large lottery or prize, but must pay fees or taxes before they can claim their winnings.
• Inheritance scams: A scammer claims the victim is the beneficiary of a large inheritance but must pay legal fees or other costs to receive it.
• Loan scams: Fraudsters offer low-interest loans but require an upfront fee to process the loan application.
• So-called ‘Nigerian Prince’ scams: This involves a person claiming to be royalty or a high-ranking official who needs help transferring a large sum of money out of their country.
• Career opportunity scams – when victims are told they must pay a fee to be able to take up the job
• Dating or romance scams - people being duped into sending money to criminals who go to great lengths to gain their trust and convince them that they are in a genuine relationship.
• Rental fraud - when potential tenants are tricked into paying an upfront fee to rent a property
• Impersonation of official – this concerns a person who impersonates an official(s) to make false promises about tax rebates, or to demand fees, “customs payments” or “VAT” payments.

As these examples illustrate, advance fee fraud is a deceptive practice that exploits a victim’s trust and desire for substantial financial gain. Advance fee scams typically start with unsolicited messages to the potential victim, although they are not always perpetrated against strangers.

With all of this said, business transactions can be complicated and involve multiple exchanges of funds or assets to complete. For this reason, there is sometimes a risk of facing a fraud allegation even in cases where you have acted within the law and did not intend to perpetrate any kind of financial fraud. Solicitors from JMW’s Business Crime team can discuss your situation and advise you on how we can help.

JMW offers expert legal advice for anyone facing fraud allegations and can help you to mount a defence. Common approaches to defending against charges of advance fee fraud involve challenging the prosecution's evidence and usually means proving that the person accused did not commit the offence as alleged. We can also present mitigating factors to ensure that sentences are not excessive or unfair.

A fundamental element of advance fee fraud is the intent to deceive the victim for personal gain. If you did not have the intent to defraud - for example, if you believed the transaction was legitimate or had no knowledge of the fraudulent nature of a scheme - this may form part of your defence. Similarly, if you intended to deliver the goods or services in question, this can support your defence.

If you were forced to participate in a fraudulent scheme under threats of harm or other forms of coercion, this can also be used in your defence. You would need to provide evidence showing that you had no reasonable alternative but to participate in the fraud to use this defence.

The prosecution must prove beyond a reasonable doubt that a person committed the fraud and, in some cases the evidence presented is insufficient. Our team might have scope to challenge the credibility of witnesses, the authenticity of documents, or the chain of custody for physical evidence as part of your defence.

If a person did not benefit financially from the alleged fraud and can prove this, it might also undermine the prosecution's case. Speak to the team at JMW for advice on the best way to defend against allegations of advance fee fraud, and our specialist fraud solicitors can get started on building your case.

The potential sentences for advance fee fraud vary depending on the specifics of the case, including the amount of money involved, the number of victims, a person’s criminal history, and the specific charges you are facing. Advance fee fraud is usually prosecuted under the Fraud Act 2006, particularly under sections related to fraud by false representation, fraud by failing to disclose information, or fraud by abuse of position. All three of these charges carry a maximum sentence of 10 years' imprisonment and an unlimited fine.

Your solicitor can advise you as to whether or not you are likely to face a custodial sentence. Depending on your financial situation and the specifics of the offence, you may receive a fine either as the sole punishment or in conjunction with other sentences. Confiscation (Proceeds of Crime Act 2002) proceedings are also most likely to be commenced.  In some cases, courts can also order offenders to pay compensation to their victims to redress the financial harm caused by the fraud. For less serious cases, especially where there are strong mitigating factors, you might receive a community order, which could include unpaid work, rehabilitation activities, or a curfew.

Mitigating factors can include:

• A lack of previous convictions
• Evidence of remorse
• Efforts to mitigate harm to victims
• Cooperation with law enforcement

On the other hand, any previous convictions for similar offences can lead to longer custodial sentences. If a person targeted vulnerable individuals or used fake identities or documents to facilitate the fraud, this can also lead to an increased sentence.

Your solicitor can play a role not only in mounting your defence, but also in ensuring that your sentence is fair and proportionate to the crime you have been convicted of. As such, it is crucial to work with experienced criminal solicitors at all stages of an investigation or prosecution in which you are a subject or defendant.