Advance fee frauds ask investors to pay a fee up front—in advance of receiving any proceeds, money, stock, or warrants—in order for the deal to go through. The advance payment may be described as a fee, tax, commission, or incidental expense that will be repaid later.

Some advance fee schemes target investors who already purchased underperforming securities and will offer to sell those securities if an advance fee is paid—or target investors who have already lost money in investment schemes. Fraudsters often direct investors to wire advance fees to escrow agents or lawyers to give investors comfort and to lend an air of legitimacy to their schemes. Fraudsters may also try to fool investors with official-sounding websites and e-mail addresses.

Advance fee frauds may involve the sale of products or services, the offering of investments, lottery winnings, found money, or many other so-called opportunities. Fraudsters carrying out advance fee schemes may:

• Offer common financial instruments such as bank guarantees, old government or corporate bonds, medium or long term notes, stand-by letters of credit, blocked funds programs, fresh cut or seasoned paper, and proofs of funds;

• Offer to find financing arrangements for clients who pay a finder’s fee in advance; or

• Pose as legitimate U.S. brokers or firms and offer to help investors recover their stock market losses by exchanging worthless stock—but requiring investors to pay an upfront security deposit or post an insurance or performance bond.

In Wyoming, as in other states, advance fee frauds are illegal and are considered a form of white-collar crime. These schemes violate various state statutes and federal laws that prohibit fraudulent activities and deceptive business practices. Wyoming Statutes Title 40, Trade and Commerce, contains provisions against fraudulent and deceptive acts, including the Wyoming Consumer Protection Act, which could apply to advance fee schemes. Additionally, federal laws such as the Securities Exchange Act of 1934 and the Federal Trade Commission Act prohibit fraudulent activities related to securities and interstate commerce, respectively. Victims of advance fee frauds in Wyoming can report the crime to local law enforcement, the Wyoming Attorney General's office, or federal agencies such as the Federal Bureau of Investigation (FBI) or the Securities and Exchange Commission (SEC). It is advisable for individuals approached with such offers to exercise due diligence and consult with an attorney before making any payments or investments.