Advance fee fraud is when a scammer tricks their victim into paying an upfront fee for a service that doesn’t exist. This often includes personal loans, rental properties, job opportunities and competitions. Once the upfront fee is paid, the scammer typically disappears with the money, leaving the victim out of pocket.

To protect yourself from advanced fee fraud, you should:

Question when you’re asked to pay upfront fees for goods or services you’ve ordered, as well as those you haven’t.
Be aware that winning a competition you haven’t entered is highly unlikely. It’s also highly unlikely you’ll be asked to pay a fee to claim prizes from legitimate competitions.
Be cautious of recruiters’ email addresses. Typically, they’ll use a business address instead of Gmail, Hotmail or Yahoo.
Be vigilant on social media, as scammers often post fake job opportunities and competitions on platforms such as LinkedIn, Facebook and Instagram.

Advanced fee fraud is a type of scam where an individual is asked to pay a fee in exchange for goods or services. Typically, though, the scammer will disappear with the victim’s money, without providing anything in return. Examples of advanced fee fraud include:

Loan fee fraud: You’re accepted for a loan, but before it’s “approved”, you’re asked to pay a fee for insurance, processing or an admin charge. Once paid, the loan never arrives, and the scammer disappears with your funds.
Job scams: You apply for a job and are told you’ve been successful. But before you can start, you’re asked to pay for background checks, training, or admin costs. Once paid, the job offer vanishes, and so does the scammer with your money.
Social media competition: You’re told you’ve won a prize in a competition, perhaps one you never even entered. But to claim it, you need to pay a small fee for delivery, verification or admin. After you pay, the prize never arrives because the competition was fake.
Rental property scams: You find a great rental property online. The “landlord” asks for a deposit to reserve it, often claiming there’s a lot of interest or that you can’t view it in person. After you send the money, the property turns out to be fake — or already rented to someone else.

The key difference is advanced fee fraud involves a scammer asking for an upfront payment for a promised good or service – one that typically doesn’t exist. Phishing scams, however, aim to steal your personal data (such as password or debit card details) by disguising malicious links or emails as legitimate communications.

If caught and convicted, scammers who commit advanced fee fraud can face serious legal consequences. Under UK law, this type of fraud can result in up to 10 years in prison and unlimited fines.