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Consumers should beware of a new scam under the guise of a promotional sweepstakes announcement from the Nevada Stakes Lottery. The Better Business Bureau says consumers are receiving a congratulatory letter that includes a check. The BBB urges consumers not to cash the check as it is counterfeit.
"Scam artists have created a fake lottery in the hopes of striking it rich with potential victims," said Tim Johnston, president and CEO of the Better Business Bureau of Northern Nevada.
One California consumer received a check for $5,280.88. It was the "first installment check" that was to be used to help pay for insurance, administration, legal and documentation fees.
"When you look closely at the mailing, consumers should see a lot of red flags," said Johnston. The letter is mailed from Canada and has a Reno address on the letter. The letter includes phone numbers with a Canadian area code. Lastly, the enclosed check is from an unrelated company in Georgia drawn on a bank in Georgia.
The scam artist is hoping that someone will deposit the check and follow the directions provided when calling the phone number. "Do not under any circumstance send a check or wire transfer money to any individual or company that you don't know," adds Johnston.
How to Spot a Lottery Scam:
• If you get an alleged award notification letter, several things become evident. The name of the sweepstakes/lottery will have a very generic-sounding name, such as USA Mega Direct or USA Lotto Direct, both of which sound like you could have potentially entered.
• You will then be congratulated on being a winner of a large amount of money, given a reference number, and asked to not make your winnings public just yet.
• Included with the letter will almost always be a legitimate looking check, with an amount that can range from several hundred to several thousand dollars. The solicitation will tell you that this check is to help you offset insurance, taxes, and shipping and handling fees which you will need to pay before you can claim your prize, and will then direct you to call their representative in order to find out how to claim the winnings.
• As soon as you call the number provided on your solicitation, you will be instructed to deposit the check into your personal bank account. Here is where the essence of the check scam lays: as real as it may look, the check will not have any funds to back it up. Shortly after taking out what you think are the funds from the check, you will be instructed to wire a certain amount of money, usually via Western Union or MoneyGram, to a previously undisclosed third party location.
• The money that you will be wiring will be your own. Within a few days your bank will realize that the check you deposited was a fake check. As a result it will bounce and you will be held liable for any insufficient fund fees at the least.
"Scam artists have created a fake lottery in the hopes of striking it rich with potential victims," said Tim Johnston, president and CEO of the Better Business Bureau of Northern Nevada.
One California consumer received a check for $5,280.88. It was the "first installment check" that was to be used to help pay for insurance, administration, legal and documentation fees.
"When you look closely at the mailing, consumers should see a lot of red flags," said Johnston. The letter is mailed from Canada and has a Reno address on the letter. The letter includes phone numbers with a Canadian area code. Lastly, the enclosed check is from an unrelated company in Georgia drawn on a bank in Georgia.
The scam artist is hoping that someone will deposit the check and follow the directions provided when calling the phone number. "Do not under any circumstance send a check or wire transfer money to any individual or company that you don't know," adds Johnston.
How to Spot a Lottery Scam:
• If you get an alleged award notification letter, several things become evident. The name of the sweepstakes/lottery will have a very generic-sounding name, such as USA Mega Direct or USA Lotto Direct, both of which sound like you could have potentially entered.
• You will then be congratulated on being a winner of a large amount of money, given a reference number, and asked to not make your winnings public just yet.
• Included with the letter will almost always be a legitimate looking check, with an amount that can range from several hundred to several thousand dollars. The solicitation will tell you that this check is to help you offset insurance, taxes, and shipping and handling fees which you will need to pay before you can claim your prize, and will then direct you to call their representative in order to find out how to claim the winnings.
• As soon as you call the number provided on your solicitation, you will be instructed to deposit the check into your personal bank account. Here is where the essence of the check scam lays: as real as it may look, the check will not have any funds to back it up. Shortly after taking out what you think are the funds from the check, you will be instructed to wire a certain amount of money, usually via Western Union or MoneyGram, to a previously undisclosed third party location.
• The money that you will be wiring will be your own. Within a few days your bank will realize that the check you deposited was a fake check. As a result it will bounce and you will be held liable for any insufficient fund fees at the least.
