Helen Smith is either the luckiest woman on the planet or a magnet for scam artists from Canada.
From Oct. 18-22, the veteran Oxford resident received through the mail three checks from different sources totalling $13,395.
‘They look like real checks,? Smith said.
Contained with the three checks were four letters, all from different people and organizations, each informing Smith she was the winner of $250,000 or more from various lotteries and sweepstakes she never entered. ‘Aren’t I lucky?? she said sarcastically.
Despite being from different sources, all three checks and letters had the same Canadian stamp and postmark on the envelopes they arrived in. They also had no return addresses.
Now, a gullible person might have believed they had just won $750,000 or more, but anyone who knows Smith knows she’s not easily hoodwinked. Smelling a scam, she informed the local post office.
‘We’ve gotten those on and off,? said Oxford Postmaster Joe Wilson. ‘We’ve always had trouble from mostly Nigeria and some other foreign countries in South America and Africa. It’s an ongoing issue.?
‘About three weeks ago we had someone come in and try to cash a bogus money order (received in the mail). It looked really good, but it didn’t pass the blacklight test and some other things,? Wilson noted.
Wilson referred Smith to U.S. Postal Inspection Service.
‘There’s a big push now by the Postal Service to end these money order and check scams,? he said. ‘Our warning to people is there is no free money out there. These are scams.?
The Postal Inspection Service told Smith the checks were indeed attempts to defraud her.
‘I told her they’ve all got these Canadian stamps on them and she knew exactly what I was talking about,? Smith said.
Smith called the Leader because she felt it was her duty to warn others who may have received similar checks and letters.
‘I’m concerned about other people around here, particularly older people, believing this stuff,? she said. ‘Someone might think this is real. I wish they were, but they’re not.?
After doing a little research at the Leader’s request, employees at Oxford Bank determined all the account and routing numbers on the checks were valid and from the banks listed on them, however, the account names printed on the checks were not correct.
‘None of the names and addresses on the checks matched up with the actual account holders,? said Heather Barnette, assistant branch manager at Oxford Bank’s 60 S. Washington St. location. ‘My guess is the scam artists had a check from each of these banks, got the routing and account numbers from them, and made up their own names.?
Anatomy of a scam
So how does this check scam work? According to a brochure put out by the Post Office, a common ploy involves a person receiving a check and notification that they’ve won a foreign lottery or sweepstakes.
The target of the scam is told to deposit the check, which represents a portion of the winnings, and wire-transfer $2,000 to $5,000 back ‘to cover the taxes,? so they can collect the rest of their prize.
Regardless of the pitch, the check received for deposit is counterfeit. It will be returned to the bank unpaid and the full amount deducted from the targeted person’s account.
Meanwhile, the victim is responsible for any check deposited to their account. If it turns out to be counterfeit or is returned unpaid for any reason, the victim is fully responsible for the loss.
Just because cash can be withdrawn from an account shortly after depositing a check doesn’t mean it’s valid. It can be weeks before a check is discovered to be counterfeit and returned to the bank unpaid.
Don’t rely on bank employees to determine whether or not a check is valid. They may not be able to tell and their job is simply to process financial transactions.
At Oxford Bank, if either the customer or the bank believes a check is ‘suspicious? they can take special measures, according to Barnette.
‘To protect them and to protect the bank, we would a place a hold on it,? she said. ‘Being an out-of-state check it would be at least five business days, but thinking that it’s a scam we would probably do an extended one (12 days) just to be on the safe side.?
Placing a ‘hold? means the ‘customer would not have access to those funds until we knew for sure that the checks cleared,? Barnette explained.
What to look out for
One of the checks Smith received was for $3,657 from Gold-Touch Investment: Lottery Resources and Payment Verification Center.
According to the two letters which accompanied the check, Gold-Touch Investment is based in Phoenix, Arizona.
But the check lists the company’s address in Iselin, New Jersey.
Gold-Touch Investment informed Smith she’s a winner in the North American Prize Pool, which consisted of 50,000 names from Europe and North America selected by a computer system.
One letter claimed Smith won $316,780, while the other letter, in the same envelope, stated she won $250,000.
Smith was informed that the $3,657 check she received had been deducted from her winnings so she could pay a ‘percentage surcharge and processing fee to the Lottery Agent in charge of your winnings.?
One of the letters, signed by a Margaret Best (Accts. Manager), warned Smith that ‘cashing this check without using it for the purpose of paying your processing fee will result in legal action.?
It also warned her ‘not to discuss your winning with your friends, associates or bank officials. This is for your own protection and security.?
Smith also received a $4,900 check from Taylor Boiler Trust Funds in Portland, Oregon. However, the letter that came with it was from USA Direct Promotions in Las Vegas, Nevada.
The letter informed Smith she won $250,000 in the USA Mega Lotto drawing held Aug. 21. In order to start the ‘claim process,? Smith was conveniently provided this $4,900 check ‘to help you pay for handling, insurance and delivery fees.?
Like the letter from Gold-Touch Investment, USA Direct Promotions warned Smith to ‘keep the process confidential until you have received your winnings and it’s safe in your hands.?
To make Smith feel secure, the letter, signed by Ronald L. Slumm/VP Operations, informed her that ‘USA Direct Promotion is backed by the full authority and support of the American Government. Your winnings will be deposited in an escrow account in one of America’s largest federally chartered banks.?
Smith’s so-called lucky streak continued with a third check for $4,820 from CIBC Financial Group.
According to the check, CIBC is located in West Valley, New York, but the letter enclosed with it listed the company’s address in St. John NF, Canada.
Promotions Manager Walter H. Harrison informed Smith that she had won $250,000 in a ‘compensation drawing? held Sept. 5 for ‘all onetime sweepstakes participants in the last five years.?
Harrison wrote that the enclosed check should be used by Smith ‘to pay the Non Resident Government Service Tax (GST)? of $3,850. It’s interesting to note the letter stated the check amount as $4,875, while the amount listed on the check is $4,820.
Smith was directed to send a $3,850 ‘money gram? to a tax agent named Francis Smith in St. John NL, Canada.
Phone call from a stranger
On Oct. 23, Smith received a call from a ‘foreign man,? whom she ‘couldn’t hardly understand.?
‘He said, ‘Mrs. Smith, I’ve called you about your winnings,?? she said. ‘I hung up on him.?
When the unknown man called back and asked if they had been disconnected, Smith told him she felt this was all a ‘fraud? and hung up on him again.
‘I was so sick of this,? she said.
Knowledge is power
To learn more about common consumer scams, visit the following websites ? www.fakechecks.org; www.usps.com/postalinspectors; www.lookstoogoodtobetrue.com; www.ic3.gov and www.ftc.gov.
If you believe you’ve been victimized by mail fraud contact your nearest Postal Inspection Service Office by calling 1-877-876-2455