Doing biz with a Nigerian client - what are the risks

Discussion in 'International Business' started by Sparklez35, Jun 23, 2010.

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  1. Sparklez35

    Sparklez35 UKBF Newcomer Free Member

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    Well its my Husband.

    He has been approached to do some IT work to build an online CRM system for them, but the client is from Nigeria. He has met the client in the UK a few months ago to discuss job specifications. The job will be priced about £12K.

    There are lots of horror stories about Nigerian money scams involving bank transfers, and we would like to avoid the pitfalls.

    They have asked for bank details, account number and a sort code to make an advance deposit in respect for starting work. We are planning to provide a bank account number that has no balance (without telling them its zero) and we will move the money to another account when its clear.

    What can a Nigerian do with an English bank account number and a sort code? Is this safe?
     
    Last edited: Jun 23, 2010
    Posted: Jun 23, 2010 By: Sparklez35 Member since: Sep 30, 2008
    #1
  2. sysops

    sysops UKBF Newcomer Free Member

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    Bank account details (number and sort code) are not secure data. There is nothing anyone can do with them that could possibly harm you.

    (before anyone starts on about direct debit - the DD Guarantee means that you are 100% protected)
     
    Posted: Jun 23, 2010 By: sysops Member since: Feb 1, 2007
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  3. Faevilangel

    Faevilangel Website Critic Free Member

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    Yup sysops is right, the only thing they can do is start a direct debit on the account, but under the dd guarantee you're protected.

    Jeremy clarkson found that out when he published his bank details in a national newspaper.

    http://news.bbc.co.uk/1/hi/7174760.stm
     
    Last edited: Jun 23, 2010
    Posted: Jun 23, 2010 By: Faevilangel Member since: Jun 29, 2009
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  4. Sparklez35

    Sparklez35 UKBF Newcomer Free Member

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    Doesnt the client need an originators code to do a direct debit? Theres no UK address for the client.
     
    Posted: Jun 23, 2010 By: Sparklez35 Member since: Sep 30, 2008
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  5. Astaroth

    Astaroth UKBF Newcomer Free Member

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    Look at the bottom of your cheques, each one has all this information on. Without being able to answer security questions the only thing they can do with it is deposit money into your bank. If the money is coming from overseas however they should also be asking for the swift/ routing code.

    The Nigerian Scam is traditionally the "I am dying and what you to administer my £10m estate for good will and you can keep 10% for doing it" type thing.... there are a lot of legitimate business people there too
     
    Posted: Jun 23, 2010 By: Astaroth Member since: Aug 24, 2005
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  6. Wallpaper

    Wallpaper UKBF Newcomer Free Member

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    Not on their own but they are used to aid a fraudster build a bigger picture of your profile.
     
    Posted: Jun 23, 2010 By: Wallpaper Member since: May 4, 2010
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  7. sysops

    sysops UKBF Newcomer Free Member

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    Nebulous scaremongering nonsense.

    Give me an example.
     
    Posted: Jun 23, 2010 By: sysops Member since: Feb 1, 2007
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  8. Sparklez35

    Sparklez35 UKBF Newcomer Free Member

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    Its nothing like that, but they seem too keen to place deposits in a UK account.

    I am growing more & more supicious of this client, their emails are sent from a blackberry, their domain name is registered a private individual in Nigeria and the UK location where my husband met the client was - wait for it - a rented bedsit in Dulwich!!

    We are perplexed why they dont go to an IT firm in Asia (much much cheaper) or outsource it on places that offer safe escrow services such as vworker.com.
     
    Posted: Jun 23, 2010 By: Sparklez35 Member since: Sep 30, 2008
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  9. Herbie

    Herbie UKBF Newcomer Free Member

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    My only advice is..ask for all you money to be paid upfront or at east 50% minimum.
     
    Posted: Jun 23, 2010 By: Herbie Member since: Aug 30, 2005
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  10. sysops

    sysops UKBF Newcomer Free Member

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    If it smells fishy then there could well be a problem, but as I said, supplying your account number and sort code will not give them any leverage.
     
    Posted: Jun 23, 2010 By: sysops Member since: Feb 1, 2007
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  11. papverpoppies

    papverpoppies UKBF Newcomer Free Member

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    I think this is often a way to money launder, they cannot open accounts for themselves so they use bonafide accounts, and then buy things with the hookey money they have deposited and then scarper.

    Also Fraudsters are pretty hot at the moment on altering cheque micro-lines. They know exactly where to bank them to initiate a fraud.

    Although you would be covered via your bank if this did happen, its best not to, if you do not have to.

    I am not sure I would have attended a meeting in a bedsit (did Hubby go alone)?

    Good Luck

    Poppy xx

    Poppy xx
     
    Posted: Jun 23, 2010 By: papverpoppies Member since: Apr 8, 2009
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  12. Sparklez35

    Sparklez35 UKBF Newcomer Free Member

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    Client now wants another meeting.. My Husband is going to quote high with 50% in advance and 50% half way though the job, about £8-9000.00 GBP.

    He will contract it all out to an IT firm in Chennai India, someone he knows very well. They'll get the job done for under £400 UK pounds priced in Rupees.

    We are baffled why the client doesnt just go to India? its not a secret to outsource IT work there, we do it all the time.
     
    Posted: Jun 23, 2010 By: Sparklez35 Member since: Sep 30, 2008
    #12
  13. Sparklez35

    Sparklez35 UKBF Newcomer Free Member

    60 2
    We are not intending to send or receive a cheque, the Nigerian travellers cheque scam method is known to us. Once the money is deposited via BACS, we will move it and inform the bank to stop any DD's on the account if one is attempted.

    Agreed.

    We didnt know the address was a bedsit, but he did find it rather odd. It was a clean room with a kithcenette, a lady in a cheap biz suit a laptop, nothing else. She phoned us last night at 10pm. All very strange.

    I wondered if anyone else has has such a strange experience.
     
    Posted: Jun 23, 2010 By: Sparklez35 Member since: Sep 30, 2008
    #13
  14. drounding

    drounding UKBF Newcomer Free Member

    377 80
    Personally I'd just walk away from this and leave well alone.
     
    Posted: Jun 23, 2010 By: drounding Member since: Aug 26, 2009
    #14
  15. papverpoppies

    papverpoppies UKBF Newcomer Free Member

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    If this sounds hooky, then it probably is.
    In truth, why would anyone pay those prices if they can get the job done for the price you state.

    Why can the person not come to your Husbands office, why a bedsit, who conducts a business deal in this manner?

    I really cannot see any genuine business person acting in this manner, and also requesting your bank details, sorry but why would they act like this, if they are above board.

    Any company paperwork you can check - remember even the Government over their have been known to cover up scams!

    Poppy xx
     
    Posted: Jun 23, 2010 By: papverpoppies Member since: Apr 8, 2009
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  16. oldeagleeye

    oldeagleeye UKBF Newcomer Free Member

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    Absolute bull shite Sysops. Bank sort cose and account number can be used to help ID fraud because it makes say an say a bogus email look genuine. All you then need to do is provoke a response and your got the pin number too.

    As for the DD. You try getting one stopped if it's payable to the likes of Virgin Media and especially if it's on your plastic account. The banks will tell you that they can't cancel . That Virgin have to do that and will they without threatening to sue. Hell no. I know I have been there.

    As for Nigeria. India used to be known as the most corrupt country in the world and right up to politician level. Now it's Nigeria and the number of scams they get up to is endless.

    We even had a guy from Nigeria post in the forum a few days ago. He claimed to be some sort of Business Angel with pots of money for starts-ups. In reality he was an amatur football coach or so he claimed on his blog and guess what. Right at the top was in effect a begging letter that no-one had sent him any presents. Fortunately our mod spotted the post as a scam and quickly withdrew it.

    Stay well - well away from Nigeria then and you should know better OP if your into web design. Someone prepared to pay £12.500 for a simple CRM site . Yea they were the days. The Asians and Chinese will do it for less than a grand these days.

    r
     
    Last edited: Jun 23, 2010
    Posted: Jun 23, 2010 By: oldeagleeye Member since: Jul 16, 2008
    #16
  17. sysops

    sysops UKBF Newcomer Free Member

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    Oh come on - you give away those pieces of information every time you hand over a cheque!
     
    Posted: Jun 23, 2010 By: sysops Member since: Feb 1, 2007
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  18. papverpoppies

    papverpoppies UKBF Newcomer Free Member

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    OP try getting a DD stopped that you have not initiated.

    I was told I had to obtain a written statement from the company (hello what company, they did not exist) that they would stop taking money from my account, as I had not authorised it.

    Sounds easy peasy to write we will just stop and DD - aint necessarily so!
    Perhaps you have a more understanding bank!

    Poppy xx
     
    Posted: Jun 23, 2010 By: papverpoppies Member since: Apr 8, 2009
    #18
  19. sjr4x4

    sjr4x4 UKBF Regular Full Member

    432 72
    Getting paid £8k revenue for £400 outlay, clients fly to UK for meetings in bedsits, and the clients are Nigerian based.

    Just read that back, and then ask yourself if you think the deal is hooky :eek:

    The potential of a quick buck is over ruling your gut instinct.

    Or greed versus common sense :redface:
     
    Posted: Jun 23, 2010 By: sjr4x4 Member since: Sep 13, 2006
    #19
  20. papverpoppies

    papverpoppies UKBF Newcomer Free Member

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    This maybe so...but would you hand over your details based on what the OP has written, I know I would not.

    These people are not stupid,(far from it) why would they pay crazy prices for a job they could get at a fraction of the price - why come here to source the work?

    Poppy xx
     
    Posted: Jun 23, 2010 By: papverpoppies Member since: Apr 8, 2009
    #20
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