BENIN: YEAR-END UPDATE ON BUSINESS SCAM ACTIVITY IN 2006

UNCLAS COTONOU 000094 SIPDIS SIPDIS DEPT FOR AF/W (DBANKS) EB/CBA FOR DENNIS WINSTEAD DAKAR FOR FCS (CGRIFFIN-GREENE) E.O. 12958: N/A TAGS: ECON EINV KCOR BN SUBJECT: BENIN: YEAR-END UPDATE ON BUSINESS SCAM ACTIVITY IN 2006 REF: A) 06 COTONOU 55, B) 06 COTONOU 414 ¶1. SUMMARY: In the final 9 months of 2006 Post received over one hundred commercial inquiries about potential Beninese business partners from U.S. companies and individuals, U.S. Export Assistance Centers and the Foreign Commercial Service. Unfortunately, a majority of the deals turned out to be scams. END SUMMARY ¶2. Most of the inquiries sought to verify the legitimacy of companies in Benin, primarily internet contacts, prior to entering into negotiations for exporting goods from the United States to Benin. Unfortunately, the majority of Post's investigations revealed that either the companies did not exist or did exist but were being used by scam artists unbeknownst to their owners or managers. Post also discovered that fraudsters routinely pass themselves off as attorneys in their quest to dupe the companies with which they come into contact. In the emails and fake websites the perpetrators use to ensnare their victims, they usually provide assumed names and untraceable mobile phone numbers as their contact information, including mobile "fax" numbers. This last tactic helps embassy personnel warn off targeted companies and individuals since no GSM providers in Benin provide mobile phone faxing services. ¶3. Time is of the essence in replying to inquiries and to reduce the risk to U.S. companies and businesspersons of being victimized in a scam. The embassy urges American citizens and companies wishing to do business in Benin and the sub-region to be cautious in handling unsolicited emails, and to contact the embassy's commercial section prior to making financial commitments or sending product samples. ¶4. To post's knowledge, no company that contacted the embassy for a verification of a Beninese company's legitimacy during the reporting period suffered a loss as the result of a business scam, although several businesses and individuals that did not perform due diligence in verifying potential partner's bona fides did fall victim to fraud. Post's Economic/Commercial Assistant, Marius Lotsu, who works closely with USFCS offices in Dakar and Abidjan, is the POC for business verification and fraud-related business issues. BROWN