CONSUMER SAFETY TIP

Special Advisory: Lottery & Sweepstakes Scams

A popular activity with criminals is the fraudulent cashier’s check and sweepstakes scam. Fraudulent checks are received through the mail and are usually accompanied by a letter stating that the recipient has won a lottery or sweepstakes prize. These checks vary in amounts, but are most often in the amount of $3,000 to $5,000. The letter also states that the enclosed check is to be used for insurance or tax payments on the winnings. Losses occur when the victim follows the letter’s instructions to deposit the check into their primary account, then write a check from their account for a lesser amount to purchase a money gram, which is sent to an individual at an address outside of the United States. Unfortunately, within days the deposited check is returned unpaid and the victim loses the amount of the money gram and any other checks that were drawn against the fraudulent funds.

Some of these scams include a “Payment Processing Form,” which requires personal and account information. When mailed, the criminal receives all the information needed to steal the victim’s identity.

These lottery and sweepstakes scam letters are being mailed out by the thousands, and generally target the elderly.
Always check with your financial institution before acting upon any written instructions that accompany checks or “payment processing forms” that are received by mail.

To learn more, you can access the following website: http://www.consumeraffairs.com/news/lucky_day.html.

This consumer safety tip advisory is presented by Dixon Foster, Security Officer at Bank of Lancaster.