An advance fee scam happens when a victim pays money to a fraudster who has promised something of greater value in return—such as a gift, contract, loan, or investment. The victim, of course, receives little or nothing, even if they cooperate with the scammer's demands. The Nigerian letter scam is an example of an advance fee scam because the victim is promised a cut of a large sum of money in exchange for providing banking details and making upfront payments.