Recently our BBB® heard about a common scam resurfacing in our area. This scam, and some very similar, have been around for many years, but new twists or popularity seem to cause increases in victims from time to time.

The scams we are discussing are sweepstake and lottery scams, which can be very tempting to unsuspecting consumers. Victims often receive a call or letter in the mail pretending to be with Reader’s Digest, Publisher’s Clearing House or a phony foreign lottery sharing the exciting news that the victim has won a prize or money.  The most recent scam uses the name of Publisher’s Clearing House.

The letter or caller will explain to the victim that as a stipulation of receiving their prize, they must first cover the taxes, administration costs or a bogus fee that must be wired back to the scammer first.  Victims may or may not be provided with a check up front, which is supposed to be a portion of their “winnings”.  They are directed to deposit these funds, then wire the fees.

If a check is received and deposited in the victim’s account, the funds may initially show up, but once their financial institution determines the check is fake, the funds will be deducted and fees may be incurred. The victim is also out whatever “fees” or “costs” were associated with the prize, wired back to the scammer.

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