National Threat Assessment 2008. Organised Crime - Politie

The number of advance fee fraud cases is much higher than the number of
reports. The Supraregional Investigation Team estimates that only 5 to 10% of
all victims actually report advance fee fraud.
Investment fraud
The number of investment fraud cases is unknown. The Netherlands Authority
for the Financial Markets (AFM) estimates the damage suffered as a result of
illicit financial activities relating to securities at 400 to 500 million euros. This
would be less than in 2005. The question remains whether this reflects reality,
because possibilities of exemption have been extended. Investments of more
than 50,000 euros, for example, are no longer monitored by the AFM. As a
result, recent cases of debatable investments in a holiday complex in Turkey that
was still to be built or in property in Dubai were not included in the figures.
3.3.4 Criminal organisation
West-African Criminal Networks (WACN), which are mostly responsible for
advance fee fraud, are described as flexible networks, consisting of separate cells.
They are also guilty of many other types of crime. The members are often
acquaintances or relatives of each other, who collaborate intensively for a short
period of time. This loose structure is typical of the WACN and ensures that the
fraudsters can quickly respond to changing situations. The loose structure also
makes them difficult to track down. A relatively large number of Dutch nationals
with Nigerian backgrounds live in Amsterdam South-East; these people represent
an attractive social network for the swindlers, who themselves are often in the
Netherlands illegally. In combination with the international nature, anonymity,
spirit of free enterprise and transit structure of the Netherlands, Amsterdam
makes a suitable base of operations for this type of advance fee fraud. An
analysis of cash flows confirms the impression that Nigerians in particular are
guilty of this type of fraud. The cash flows to Nigeria and the numbers of unusual
transactions performed by Nigerians exceed all transactions involving other West-
African countries. A shift can also be observed in how transactions are carried out
by victims and offenders. Less money is being transferred through banks; instead,
greater use is being made of money transfers.
Two variations were found with regard to the structure of the organisation.
The first variant has a leader who provides a few other members of the cell with
facilities, allowing them to contact the victims themselves. In the second variant
the leader himself sends the emails to potential victims and other members are
(a cell is) called in when the victim responds.
chapter 3 – Fraud and money laundering
109