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