When international postal inspectors arrested 77 people in a crackdown on counterfeit checks, they exposed once again the tip of an iceberg that is one of the biggest scams facing consumers today: the phony sweepstakes.
The eight-month probe involved schemes in Nigeria, the Netherlands, England and Canada, and has stopped more than half a million fake checks from being mailed to American victims.
International scammers have found U.S. consumers easy prey and are increasingly targeting them.
"All fake check scams have the same common pattern: Scammers contact victims online or through the mail and send them checks or money orders. They then ask that some portion of the money be wired back to them," said Postmaster General John Potter.
In its most common form, victims of the phony sweepstakes scam get a letter notifying them that they are a big winner in a lottery. They may even get the prize check in the mail with the congratulatory notice.
All you have to do to become a big winner is deposit the check and wire money to the sender to cover some taxes and fees. Sounds easy, doesn't it? Most consumers realize that it is indeed too easy, and recognize this as a fraudulent fake check scheme.
However, Arkansas Attorney General Dustin McDaniel says some consumers continue to fall for it, because they want to believe that its for real. The check sent to the victim is the bait that tempts them to fall for the scam.
But no matter how authentic the check looks, it's not. Consumers who deposit the checks into their accounts and authorize the wire transfer soon learn that the check didn't go through and that they cannot get the wired money back.
Banks are not responsible for covering phony deposits and will not excuse depositors from making good on the bad check.
"Scammers now have high-tech printers and scanners that allow them to make checks that look real. When you combine this technological sophistication along with a false promise of a financial windfall, consumers can easily fall victim, said McDaniel. The simple thing consumers should remember is that if it sounds too good to be true, then it probably is, and they should do their homework and ask questions prior to taking any action.
To avoid falling victim to a counterfeit check scheme, here are some tips to remember:
• Don't try to collect lotto or sweepstakes winnings if you don't remember entering the contest;
• Never give out your personal bank account information to anyone you don't know and don't trust;
• Never accept money without knowing its source;
• Never send money to an unknown source; and
• If you take the check to the bank, ask that it be verified and do not withdraw your own funds until the check has cleared, a process that can take days or even weeks.
