Fake Lottery Scam Still Making The Rounds

The fake lottery scam is one of the oldest of cons, usually preying on desperate people willing to believe that Fortune has finally smiled on them. Only, it never does.

Since the fake lottery, or sweepstakes scam works so well, scammers are still using it. It usually works this way:

A potential victim is contacted by phone or mail and told they have won a rather substantial cash prize in an international lottery. The scammer usually tries to build excitement in the victim, asking them how they will spend the money and urging them to celebrate.

It's only then that the scammer reveals the victim must pay a fee – often several thousand dollars – to secure release of the funds. It's either described as taxes or a processing fee.

Showing up in West Virginia

West Virginia Attorney General Darrell McGraw this week warned residents of his state that the sweepstakes scam has been showing up more than usual.

One recent victim in Bluefield, West Virginia, was targeted by thieves in Jamaica who in October of 2010 called him asking for "taxes" in the amount of $400.00 in order to collect his $10 million lottery prize. Once he made an initial payment, they contacted him repeatedly over a ten-month period with stories of unexpected bank charges and other fees, until they had collected more than $40,000.00.

Each time, they convinced him the winnings were real, using personal information about him which anyone can obtain over the Internet. Unfortunately, the victim has only Social Security to support him, is disabled, and badly needed the income as the only support for his hospitalized wife and extended family members. Having borrowed thousands from friends to make the foreign payments, McGraw says the victim is now facing foreclosure after failing to pay his mortgage for over four months.

Scammers use small pieces of information

"Since we hear of unexpected windfalls from legitimate lotteries, people can be easily convinced an exciting new opportunity is valid when it is not,” McGraw said. “Unfortunately, the convenience we all enjoy from modern technology is also convenient for thieves – scammers are more convincing when armed with small pieces personal of information about us, right from the Internet." 

Since most victims are seniors, caregivers and loved ones should make sure they understand that they could not have won a lottery or sweepstakes if they didn't enter. Here are other things seniors, and others, should know to avoid becoming a victim:

• Don’t act immediately. High pressure calls or emotional pleas are danger signs of fraud. Get all information and consider it carefully.
• Be wary of requests to send a payment by wire service or private courier. The company may be trying to avoid detection from postal inspectors or to get your money before you have a chance to change your mind.
• Don’t pay if it’s free or if you have won. Paying a fee to claim a prize or get something free is another danger sign of fraud.
• Check it out. If you are not familiar with the company, check its track record with your state or local consumer protection office. Even if there is no information about the company, you can get helpful advice.
• Do not believe promises of easy money. No one can legitimately claim you will make large earnings from business opportunities with little or no work, promise high returns on investments with little or no risk, or guarantee that you will win a lottery or sweepstakes.
• Don’t provide your Social Security number unless you’re applying for credit or employment. Using your personal information, crooks can steal from you and impersonate you to steal from others.
• Beware of recovery services. These are often scams designed to take your last dime by falsely offering to get money back that you lost to a fraudulent scheme - for a fee. There is no charge for filing a complaint with a government agency 
• Follow the rule of thumb: If a deal is too good to be true, it probably isn’t true.