14 DAY TRIAL // Lottery scams are not new, but the losses they cause are so large that even the US Department of Justice’s Consumer Protection Branch has started issuing alerts.
A study made by the US Postal Inspection Service reveals that citizens – most of which elders - have lost a total of $42 million (34 million EUR) after falling victims to lottery or sweepstakes scams.
They not only handed over their life savings, but they also gave the fraudsters information they could use to commit other crimes.
Let’s take another look at how these lotteries work.
The victims get a call or an email from the crooks, most of which from foreign countries, telling them that they’ve won money, a car or other fabulous prizes. The con artists attempt to convince the individual that they’ve participated in a contest via the Internet, mail or while shopping.
The prize will allegedly be delivered as soon as an up-front payment, representing taxes or insurance, is made.
To make sure that the victims doen’t get the chance to catch on, the fraudsters advise them not to discuss the winnings with anyone and urge them to send the money as soon as possible.
So, how can we avoid falling victim to such schemes?
There are a number of tricks to look out for. In some cases, the caller spoofs his number to make it look like the call is being made from the United States (or your country), even though he’s probably from a foreign country.
The crooks are mainly targeting individuals who live alone or those who suffer cognitive impairment.
They always use the names of legitimate organizations to gain the trust of the victim before requesting large amounts of sensitive information such as bank accounts or social security numbers.
Another trick they use involves fake checks or wire transfers. They make it appear as if the victim has received the money, but then ask for a portion of it to be transferred back to them. Once the unsuspecting individual sends the money, he/she realizes that the initial payment actually bounces.