CONSUMER ADVISORY
Charles J. Commons, Vice President and Director of
Security, Cortland Savings and Banking Company, has issued an advisory to
all valley residents to be aware of two scams circulating in our area
targeting unsuspecting consumers. The scams vary in appearance but all
have the common goal to entice the unsuspecting victim to send money to
the con artist.
Lottery Winner Scam
According to Commons, the most prominent scam
circulating in NE Ohio and W Pennsylvania is the lottery or sweepstakes
winner scam. NBC News recently reported this national scam. In this scam,
the victim receives a letter, e-mail, or even a phone call stating the
recipient is the winner of several hundred thousand, even millions, of
dollars in an international lottery or sweepstakes. Then, an
official-looking letter will arrive instructing the recipient to phone an
agent to confirm the winnings and may include a bank Cashier’s Check or
Official Check for several thousand dollars (usually between $2,400.00 to
$5,800.00) to pay fees and taxes in order for the lottery or sweepstakes
to release the funds. The letter emphasizes confidentiality. The recipient
is instructed to deposit the check at their bank then withdraw the funds a
day or two later, and wire the money by Western Union or other non-bank
wire transfer services outside the US, usually in the United Kingdom or
Nigeria. Many of these letters originate in Canada. The checks appear to
be drawn on various US banks, but in every case are returned as
counterfeit. If the consumer withdraws the funds from their bank account
before the check is returned, the consumer will suffer the loss.
Tips to Recognize This Scam
In addition to the description above, Commons offers
these tips to help identify this scam:
·
The letter containing the Cashier’s Check or Official
Check is poorly written containing obvious grammatical and punctuation
errors
·
The check will be drawn on an out-of-state bank, usually far
removed from our area, and may even be non-existent
·
The check will be business size and usually is a light blue,
pink, or green, and contain white cloud-like swirls
·
Ask your bank branch manager or security department
personnel to verify the authenticity of the check before it is deposited.
Never call the phone number listed on the check itself, if any is listed
·
Ask yourself if you actually entered this sweepstakes. A
sign of a scam is a claim to have won a sweepstakes/lottery you haven’t
entered.
Internet Web Site Seller/Buyer
Commons and his department have investigated
incidents involving bank clients selling large ticket items on Internet
websites, and receiving e-mail correspondence from potential buyers
overseas. The clients subsequently receive letters and checks similar to
those described above. The checks are for amounts greater than the selling
price. The seller is instructed to deposit the check and wire the
difference to a designated individual overseas in the same manner as shown
above. As with the lottery or sweepstakes scam, if the funds are withdrawn
from the bank account prior to the check clearing or being returned, the
unsuspecting seller will sustain the loss. Commons’s advice is to
discuss the proposal with your bank before wiring or sending any money to
unknown parties.
With both scams, local and federal law enforcement
can do little to stop this activity that has been going on for years and
is getting worse.
Cortland Savings and Banking Company is a locally
owned, mid-sized commercial bank headquartered in Cortland, Ohio, with
offices in Trumbull, Mahoning, Portage, and Ashtabula Counties.
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