The Emporia Police Department has received several complaints of counterfeit-check lottery scams.
These scams have caused citizens to wire off thousands of dollars in order to claim what is described as a large lottery or sweepstakes prize.
“The crooks get the money, and the victim gets nothing but a big loss and the bank coming back for its money,” Carlton Heller of the Emporia Police Department said. “Typical victims lose $2,900 to $3,900 or more, with the promised winnings never to be seen. And the crooks are almost certainly in Canada, as the envelopes are postmarked with Canadian postmarks, making the crooks impossible to trace and punish.”
Heller said people need to remember that the only lottery legally authorized in Kansas is the Kansas Lottery.
“You have the ticket and the Kansas Lottery will never charge you to claim a prize,” he said.
A recent Emporia Police case involved a person who received a letter and cashier’s check for $3,700. She was instructed to deposit the cashier’s check and contact a claims agent listed in the letter for instructions. She was instructed to send $2,900 in “taxes and administration” fees to collect $100,000. The intended victim recognized the scam and called police.
“Had she sent the $2,900 she would have lost the $2,900 once the cashier’s check failed to clear the bank as well as the remaining $800 in her account,” Heller said.
To make matters more complicated for consumers, these lottery scams use legitimate banks or companies as victims of these scams. The name and account information of the cashier’s check was correct, however, the routing number, account number and check sequencing number were not. The institution, M&T Bank, Buffalo, N.Y., was contacted and it was learned several of these checks had surfaced. Another check used the name FABCOM, LLC. The institution also was a victim of a scam.
“This is a very nasty scam threatening thousands of people,” Heller said. “...the checks are extremely good, counterfeit versions of bank cashier’s checks or corporate checks or even U.S. Postal money orders. They can easily fool even bank tellers.”
Heller said banks are required by federal law to make funds available by the next business day for bank cashier’s checks and Postal money orders, and within five days for corporate checks.
“...until funds have been finally ‘collected’ by the local bank from the issuing banks (which can take days or weeks), the consumer must not count on the checks being authentic,” he said.
Tips to avoid these scams:
F Never wire funds from a check you’ve received to pay “taxes or fees” for a promised lottery or sweepstakes prize.
F Never believe a letter, phone call or Internet message from anyone who claims they can guarantee you a prize.
F Never pay processing fees, insurance or commissions to claim a lottery prize.
F Keep your Social Security, credit card and bank account numbers to yourself.
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