Victims of ‘Nigerian scam’ gangs could get their cash back

THOUSANDS of fraud victims tricked into handing over their life savings could be able to claim their lost money back.

Money transfer firm Western Union has been forced by US regulators to put $586million (£435million) in a fund for scam victims after admitting ‘aiding and abetting wire fraud’ in January.

Anyone – including those in the UK – who was conned into giving money to fraudsters via Western Union between January 1, 2004, and January 19 this year can apply for a share of the cash.

Common scams include romance fraud, where the lonely are groomed on dating websites by crooks using fake profiles, and begging emails that appear to come from relatives abroad claiming to have had an accident and need emergency cash.

Another con, nicknamed the ‘Nigerian prince scam’, involves victims being sent an email claiming to be from a rich foreign dignitary, asking to help them transfer money out of the country in return for a reward.

Many victims were sent emails claiming they had won a lottery and to claim their prize needed to pay an administration fee.

Western Union allows customers in 200 countries to send cash within minutes between 498,000 agents.

But once the money has been transferred and withdrawn it cannot be traced. Joannie Wei, of the US federal trade commission, said: ‘In many cases the money people sent was untraceable because people did not have to show any proof of identity when collecting money or they were able to do so with fake ID.’

She said that more than 550,000 complaints have been made directly to Western Union for losses of $632million (£470million) in recent years. More than 80 per cent of these cases are from US citizens.

The number of compensation claims received is expected to exceed the pot of money available, so victims are unlikely to have their full losses covered.

Steve Nowottny, of MoneySavingExpert, said: ‘Unfortunately if you’re caught out by a scam involving a wire transfer it can be notoriously difficult to get your money back – so this appears to be a welcome opportunity to reclaim.

‘For many who may have long since written off their losses it’s a real opportunity to get at least some money back.’

Western Union said it shared the US government’s goal of protecting customers from fraud and was cooperating with the department of justice. Claims must be filed by February 12 next year.