‘You Just Won $1 Million’ … How Convincing Is It?

Sure you must have seen one of those emails ‘notifying’ you of having won one million dollars in a lottery in Attacau in southern Africa, and… too bad, they can’t send it the money to you unless you pay up the remittance charges beforehand.

Lottery and prize scams are among the leading frauds globally, and imposters keep tempting consumers with big financial prizes and counterfeit checks, said an expert.

“It’s tempting to play a foreign lottery, especially when you hear you have better odds playing overseas. It’s also tempting to draw on your sweepstakes winnings of a million dollars, especially when the check looks legitimate and the funds are cleared for use by your bank in just a couple of days. If it sounds too good to be true, it usually is,” says Shelley Bernhardt, director of Consumer Protection at Western Union, a leader in global payment services.

“Sophisticated scammers prey on people lured in by these ‘once in a lifetime’ offers and then take the money and run,” she added. “We want to provide consumers with the right information so they can avoid these kinds of traps. After all, they’re the first and best line of defense against fraud.”

Victims get an unsolicited phone call, email, letter or fax from someone claiming to work for a government agency or claiming to represent a well-known celebrity, notifying them that they’ve won a lot of money.

The scammer gains their trust and explains that, in order to collect their winnings, they first have to send a small sum of money back to pay for processing fees or taxes. Following the instructions they’re given, they immediately wire the money. They never hear again from the person who contacted them and they’re out the money they paid for “fees and taxes.”

Victims may also get an unsolicited check or money order and directions to deposit the money and immediately wire a portion of it back to cover processing fees or taxes.

Weeks later, victims learn the checks are counterfeit, but they’ve already wired the money to cover the “taxes” and can’t get it back. And they’re on the hook to pay their banks back for any money they withdrew.

A legitimate sweepstakes company won’t make you pay-to-play or pay to receive your winnings, said Bernhardt.

Scammers also lie to lure a victim in and may use appealing devices, such as celebrity names, to make their offer seem more authentic, she warned.