Friday, April 10, 2009

BBB Alert - Fake Sweepstakes Checks

Don’t Be Fooled By Fake Sweepstakes

Your Better Business Bureau is warning the public to beware of letters supposedly from Publishers Clearing House. The letters claim the recipient has won $1 million. Despite the fact that the letter looks official (see pdf), this is a widespread scam that is seeing a sudden resurgence across the country.

This particular scam is probably occurring in response to the fact that the actual Publishers Clearing House recently awarded a New Jersey woman $5,000 a week for the rest of her life. Just like using sound alike names to lure victims, scammers use recent, publicized events such as this because it’s on the top of people’s minds.

Here’s how this scam works. The victim receives a letter supposedly from Publishers Clearing House claiming they have won $1 million as a result of a drawing sponsored by Reader’s Digest Magazine. The letter is accompanied by a check for as much as $5,900 with instructions to call the Publishers Clearing House representative listed in the letter. By phone, the victims are told that, in order to receive their prize, they must cash the check and then wire approximately $4,000 to Publishers Clearing House. They are told the rest of their winnings will be sent to them, but of course, the check is fraudulent and any money wired to the scammers cannot be recovered.

Since early March, the BBB’s national office has received reports about the Publishers Clearing House scam from 19 states including California, Georgia, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maine, Michigan, Missouri, New Jersey, Ohio, Pennsylvania, Texas, Utah, Virginia, Washington, West Virginia and Wisconsin. Not only are letters popping up in mailboxes, but some people report receiving phone calls from scammers pretending to be with Publishers Clearing House.

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