Spam-scam crackdown nets $2 billion in fake checks

By Randall Mikkelsen

WASHINGTON (Reuters) - An international crackdown on Internet financial scams this year has yielded more than $2.1 billion in seized fake checks and 77 arrests in the Netherlands, Nigeria and Canada, U.S. and other authorities said on Wednesday.

The scammers, often West African organized crime groups, use ploys such as "spam" e-mail offering to pay recipients "processing fees" for depositing checks, which later turn out to be phony, and sending the ostensible proceeds to the scammer, authorities said.

The ruses are aided by U.S. financial practices that quickly credit a bank customer for deposits even though it can take far longer to discover a fake check and reclaim the money from the customer. The victims find themselves out the money they forward when the checks prove to be fake.

"Most Americans don't realize they are financially liable when they fall for these scams," Susan Grant, vice president of the National Consumers League, said at a news conference to publicize the arrests and promote awareness of the frauds.

The crackdown netted 16 arrests in Nigeria, 60 in the Netherlands and one in Canada, said Greg Campbell, U.S. Postal Inspection Service inspector in charge of global security.

"We shut down Internet cafes, we arrested scammers, and significantly disrupted the flow of fake checks into the United States," Campbell said.

Law enforcement in England also took part. Nigeria is a recognized hotbed for the financial frauds and the other countries have significant West African populations that include fraud operators, authorities said.

Three suspects from the Netherlands and Nigeria were extradited to New York and are awaiting trial, said U.S. Assistant Attorney General Alice Fischer. The United States is seeking to extradite five others.