Win the lottery? Might Want to Double-Check

One of the all-time most popular scams is the lottery or sweepstakes scam, in which a victim will be told they’ve won a cash prize in a contest they don’t remember entering. Of course, everyone wants free money – which is why the scam works.

There are three main variations, two of which are rather similar:

1. The scammer will send a check or money order to the victim for a “portion of the winnings,” with the explanation that it is to cover taxes on the prize. The victim is instructed to cash the check and wire a specified amount (the “taxes”) back to the scammer, who will then send the rest of the winnings. Of course the check is counterfeit, the wire transfer is untraceable, and the rest of the “money” never arrives.
2. The second (and similar) variation involves a victim receiving a letter informing them of their prize and instructing them to pay the taxes so that the winnings can be released. While virtually the same as the variation above, this one doesn’t involve any counterfeit checks.
3. The third common variation involves a victim receiving a phone call from a scammer informing them that they’ve won a prize by random selection. The caller tells the victim they don’t need to do anything and the prize will be automatically mailed out. Trust is developed between the victim and the scammer, as the scammer “confirms” the victim’s information (name, home addresss, phone number). Either in the same phone call or in a follow-up call, the scammer will tell the victim that they can either wait for the check to come in the mail, or they can provide their checking account information to have it direct deposited. Naturally, mailed checks never arrive, and direct deposit is actually “direct debit.”

Remember the golden rule of lotteries and sweepstakes: no one wins a contest they didn’t enter. Also remember the silver rule: You will never have to pay to receive a legitimate prize.

Should you ever receive a letter like the ones mentioned above, don’t respond! Either shred it and throw it out or turn it over to law enforcement. If a check or money order came with it, ask your bank to check it out (but don’t deposit it). Notify law enforcement if it is indeed fake. NEVER wire money to pay the “taxes” on your winnings – not only are wire transfers virtually untraceable, meaning your money will never be recovered, but taxes are claimed when you file or taken directly out of the winnings (not paid in advance).

For phone calls like the one mentioned above, DO NOT give out any personal information, including bank account and routing info. Scammers can easily get basic information from a phone book or online, so don’t trust them just because they relay your home address to you. Also, if given the option for direct deposit, insist on the paper check in the mail – it’s worth the wait for legitimate prizes to avoid having your account drained by a scammer. If you ever actually do receive a check, make sure to have your bank check it first for legitimacy, and turn over any fakes to law enforcement. If anything shows up on your caller ID when you receive these types of phone calls, jot it down so you can provide the information to law enforcement if needed.

Remember, if you deposit a fake check or money order, it is YOU who will be held responsible for the money. If you’ve spent all your “winnings” before you find out it’s a fake (which can take up to a week or more in some cases), you’ll have to find a way to repay the bank. In addition, you may be held criminally liable for fraud. Also beware if you ever receive a prize notification via email; legitimate lotteries and sweepstakes don’t notify winners via email. If you receive an email like this, delete it (and don’t open any attachments).

Finally, most of these types of scams come from abroad, with Canada and Jamaica being two common origins. Keep in mind that it is illegal under federal law to participate in a foreign lottery through the mail or over the phone.

Contact the Lancaster Police Department at (661) 723-6063 or publicsafety@cityoflancasterca.gov

We’ve all seen the spam e-mails...someone with poor spelling and grammar sends you a letter, claiming to be a staff member of some deposed (but good) African politician, trying to get money out of the country so the evil government can’t seize it. Of course, if you help him, you’ll get a cut of the cash. Sounds good, right?

These scams are called “Nigerian” or “419” scams, for the Nigerian Criminal Code section for obtaining property by false pretenses (a.k.a. fraud). They have been circulating around in one form or another since the 1920s, and have evolved over time. They can come from any country and have any kind of backstory (including the ever-popular Canadian lottery scam), but the end result is always the promise of loads of cash for you – as long as you give up some cash up front.

The scary part is how personal they have become. The newest incarnation involves someone hacking into your Facebook account and posting messages telling your friends that you’re stuck in London. Sometimes they claim your wallet was stolen, sometimes they claim you’re in some kind of legal trouble…either way, they want your friends to wire money via Western Union to London (or some other foreign city) to bail you out. And of course, they’ve changed your password so you can’t get into your account to stop them.

If one of your friends on Facebook (or MySpace, or any other similar site) suddenly starts posting messages about being stuck somewhere abroad and needing cash urgently, stop. THINK. Call the person first, even if you think they are likely to be abroad. Chances are they’re sitting at home, right in their living room. NEVER wire money abroad via Western Union or any other third-party service unless you can verify EXACTLY who it’s going to. If you want to send money because you believe the person might legitimately be in trouble, do it via bank transfer, directly into that person’s account.

Many people have been victimized by this scam, some losing thousands of dollars. The scam preys on the good nature of caring friends and relatives, and seems all the more believable because it’s coming from your trusted friend’s account.

If you or anyone you know has fallen victim to this scam or has had their account hacked at all, there are options. Facebook has a page where you can report the hacking of your account or a friend’s, here. Don’t be fooled by the page’s name (“419 Scam”) - it can be used anytime an account has been hacked.

There are some protective measures you can take. If you don’t already have one, add a secondary e-mail address to your account, so that if it becomes compromised you can still get in. And never click on a link in an e-mail and then login, even if it seems to be from the website it claims to be; phishing e-mails have gotten quite sophisticated. Even if the URL that shows up at the top of the screen is the correct one and not a spoof URL, that doesn’t mean that your password isn’t being copied. Some phishers simply send a fake e-mail that, when the link is clicked, the real webpage opens up with a hidden “window” overlaying it that catches anything you type or click. ALWAYS type the URL in yourself.

For more information, visit the following websites:

Snopes.com
MSNBC’s Red Tape Chronicles: Facebook Imposter Scam a Growing Concern
Facebook Security Group

Open up any Pennysaver or classified ad section and you’ll see them: the advertisements claiming “You can make BIG BUCKS in your spare time as a Mystery Shopper!” Often, these ads use the tagline to grab your attention and only contain a phone number, with no details or company name.

Mystery or secret shopper scams are nothing new. For years, fraudsters have been playing on our “little-work-lotta-pay” fantasies, getting us to give out personal information (which they then use for identity theft) or getting us to cash a counterfeit check and wire the money back, giving them a chunk of free cash and us a huge headache or even criminal charges.

Remember the golden rule of money and opportunity: if it sounds too good to be true, it probably is. Not all of these ads are scams, to be fair, but a healthy dose of skepticism can go a long way toward protecting yourself and your money. Here are some more tips:

• Don’t respond to an email “offer” to become a secret shopper. This goes for just about any employment “offer” you get via email. Legitimate companies will not contact you unless you’ve contacted them first.
• Research the company. Check them out with the Better Business Bureau to see if the company has a good track record or has nothing but complaints from others who were taken in by the scam. Do a web search for the company as well, looking for hits other than the company website. Too little information could be a red flag that it’s a fake.
• If the company has a website, check the URL with http://whois.domaintools.com or a similar “whois” service to see how long the website has been in operation. If the company claims to have been in operation for 15 years, but the website has only been in existence for a month, that's a red flag. No contact information in the domain registration, or the registrant used a proxy service? Red flag.
• Check out any contact information you find with a reverse lookup service, such as http://www.whitepages.com. If the phone number provided comes back with no company name, a company name or address different from what was provided to you in the ad or website (or by the company itself), or it’s a cell phone, it’s likely a scam.
• Check the website for seals from the BBB and the Mystery Shopping Providers Association. If the website has them, verify that the company has legitimately been certified by independently checking with the BBB or the MSPA. If the BBB or MSPA says they didn’t certify a company displaying their seal, it’s a fraud.
• Even when the offer seems to come from a well-known, established company, check it out by looking up the company’s phone number yourself and contacting them directly. Many legitimate secret shopping companies have had their identities hijacked by scammers.
• If you’re being offered more than $10 or $20 per service, or if you’re being asked to cash a check and wire it back to “test the service,” watch out. Anything more than $10 or $20 is way out of line with the average compensation for this type of work, and mystery shoppers don’t “test” wire services such as MoneyGram or Western Union. Also be wary of offers or instructions to buy expensive merchandise and keep it in exchange for your services.
• NEVER pay to become a mystery shopper. The old adage “you have to spend money to make money” applies to business growth, not individual employment. You should never have to give cash up front to secure a legitimate job offer.

For more information, visit the Mystery Shopping Providers Association and the Better Business Bureau, or contact the Lancaster Police Department at (661) 723-6063.