Florida Consumer E-Newsletter - August 2006
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A Message From the Commissioner...
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Dear Friends: Whether it’s your mailbox at home or your inbox on your computer, you’ve probably received a message stating something like "YOU’VE JUST WON $200,000,000 US CASH!” or “YOUR EMAIL ID HAS WON $1,000,000.00 USD!” Although there are endless versions of this scam in operation, they all have one thing in common – they eventually request that you send money to receive your prize. Consumers have recently been targeted by fraudulent |
operators pretending to represent foreign lotteries in Canada, Australia, Spain and numerous other countries. This scam bilks consumers out of thousands of dollars annually ($120 million, according to the U.S. Postal Inspection Service). If you receive one of these scam emails, it is important that you DO NOT respond to it in any way. The scammers are likely to act upon any response from those they see as a potential victim. For additional information about scams, fraud, identity theft or other consumer topics, please visit us online. You can also request free literature by mail, so give us a call today at 1-800-HELP-FLA (435-7352) within Florida, 850-488-2221 outside of Florida or 1-800-FL-AYUDA (352-9832) en Español. Remember... consumer education is the best defense against fraud and deception! Sincerely, |
Legitimate sweepstakes are fun and free. They specify that no purchase is needed to win and buying a product will not increase your chances of winning--you should never have to pay to collect a prize.
If you do respond to a foreign lottery notification, the fraudulent operator may ask you to send money to cover fees for processing, legal operations, foreign customs, taxes, etc. Additionally, the scam artist may ask you to send a personal check, money order, wire transfer, or to disclose personal banking information, such as your check routing information or credit card number. The fraudulent operator typically assures consumers that they will receive their prize shortly after the lottery has received its payment. You should know that no prize ever exists. The only things you’ll be left with are broken promises and an empty bank account.
Here are some additional tips to avoid becoming a victim of a foreign lottery scam:
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Never pay to play. Buying something does not improve your chances of winning. It’s illegal for a company to require you to buy something or pay a fee in order to win or claim a prize. Don’t believe that you have to give the company money for taxes on your prize. If the prize is legitimate, it’s up to you to declare your prize winnings when you file your income taxes with the Internal Revenue Service.
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Be cautious about emails for contests and sweepstakes. The vast majority of unsolicited emails are fraudulent. Just remember… if you didn’t play, how can you win?
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Keep your personal information safe. Do not disclose your credit card number, check routing information, or other banking information to unknown telemarketers or those claiming to represent foreign lottery officials. Scammers can use that information to commit identity theft and access your financial accounts at will. If you are unsure if a sweepstakes or game promotion is operating legally, contact us at 1-800-HELP-FLA (435-7352).
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Be on guard for imposters. Some con artists use company names that are identical or very similar to well-known, legitimate sweepstakes operators. Tell them that you’ll get back to them and contact the real companies to ask if there is any connection or if you are truly a winner.
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Check the legitimacy of the “winnings.” If you receive a check in the mail as a result of a “lottery win,” take it to your local bank to verify the legitimacy of it. Never make a payment to the issuer of the sweepstakes!
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Be wary of offers to send you an “advance” on your “winnings.” Some con artists use this ploy to build trust and get money from you through your bank. They send you a check for part of your “winnings,” instructing you to deposit it and then wire payment to them for taxes, bonding, or some other phony purpose. The bank tells you the check has cleared because the normal time has passed to be notified that checks have bounced. After you wire the money, the check that you deposited finally bounces because it turned out to be an elaborate fake. Now the crooks have your payment, and you’re left owing your bank the amount that you withdrew.
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According to the Federal Trade Commission, you should ignore all mail and phone solicitations for foreign lottery promotions. If you receive what looks like lottery material from a foreign country, give it to your local postmaster. It is illegal!
For more consumer information, or help finding the right resource for assistance, give us a call today at 1-800-HELP-FLA (435-7352) calling within Florida, 850-488-2221 outside of Florida, 1-800-FL-AYUDA (352-9832) ¡Español!, and a consumer specialist will be happy to assist you. You can also visit us online.
Additional Resources
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Phishing - Don't Take the Bait
Phishing is a high-tech scam that uses spam, pop-up messages and emails to deceive you into disclosing your credit card numbers, bank account information, Social Security number, passwords, or other sensitive information.
The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Federal Trade Commission
The Federal Trade Commission (FTC), the nation’s consumer protection agency, says most promotions for foreign lotteries are likely to be phony. Many scam operators don’t even buy the promised lottery tickets. Others buy some tickets, but keep the “winnings” for themselves. In addition, lottery hustlers use victims’ bank account numbers to make unauthorized withdrawals or their credit card numbers to run up additional charges.
OnGuard Online
OnGuard Online provides practical tips from the federal government and the technology industry to help you be on guard against Internet fraud, secure your computer and protect your personal information.
Florida Office of the Attorney General
Attorney General Charlie Crist is urging consumers to beware of a foreign lottery scam that adopts the name of Spain’s largest lottery prize, “El Gordo,” to con consumers out of substantial sums of money.
