5 Ways to Spot a Lottery Scam
You get a phone call or a letter in the mail informing you that you just won millions in a lottery. Could this be your lucky day? More than likely, no, as this is a very common scam that preys on your excitement to claim a big prize.
To finish out our series of scams, did you know that in 2017, nearly 500,000 people fell victim to lottery scams? The reported losses alone totaled $117 million and thatâs only what was reported. The actual number of victims and losses are probably larger, as many victims are too embarrassed to report it. These scams, commonly referred to as âadvance feeâ, âlotteryâ or âsweepstakeâ scam, often begin with fraudsters informing you that youâve won a lottery or sweepstake raffle. You are issued a check worth more than the amount owed and instructed to pay âtaxes and feesâ before receiving a lump sum payment. Unfortunately, the check, in addition to the raffle, is false.
There is no legitimate reason for someone who is giving you money to ask you to send money back. Thatâs a huge red flag that itâs a scam. To help prevent you from falling victim to this scam, here are some helpful tips to keep you from getting tricked.
* Donât be fooled by the appearance of the check. Scam artists are using sophisticated technology to create legitimate looking counterfeit checks. Some are counterfeit money orders, some are phony cashierâs checks and others look like they are from legitimate business accounts. The company name may be real, but someone has forged the checks without their knowledge.
* Verify the requestor before you wire or issue a check. It is important to know who you are sending money to before you send it. Just because someone contacted you doesnât mean they are a trusted source.
* Ensure a check has âclearedâ to be most safe. Under federal law, banks must make deposited funds available quickly, but just because you can withdraw the money doesnât mean the check is good, even if itâs a cashierâs check or money order. Be sure to ask if the check has cleared, not merely if the funds are available before you decide to spend the money.
* Report any suspected fraud to your bank immediately. Bank staff are experts in spotting fraudulent checks. If you think someone is trying to pull a fake check scam, donât deposit itâ report it. Contact your local bank or the National Consumers Leagueâs Fraud Center, fraud.org.
