10/04/2006
Recently, the BBB of the Southwest was notified by a consumer regarding a lottery notification sent by International Finance containing a fraudulent check. The company's letterhead shows an address of PO Box 2593, Bloomfield, NM 87514. Bureau staff contacted Rob Berry, Operations Manager for International Finance regarding their recent prize notification at the toll free number listed in the letter. When asked to confirm their location, the company became upset, advised us to shred the letter and then hung up.
The notice claims that the consumer is a winner of the USA MEGA MILLIONS JACKPOT and that they have been approved for a lump sum payment of $600,000 US dollars. The prize must be claimed no later than October 6, 2006. The enclosed check of $4,300.00 claims to represent a portion of the consumer's winnings to help pay for legal, insurance or processing fees. To claim your winnings you must contact the company. Consumers are then instructed to cash the certified check in order to collect their "entire award package." They are then instructed to wire the money or send their own check back to the lottery company to cover fees or taxes. The names and bank account numbers of reputable and valid US businesses appear on the certified checks. The companies have advised the BBB that they are victims of identity theft and that their names and account numbers are being used fraudulently in the lottery promotions.
The problem occurs when a consumer deposits the fake check in a bank account and, a few days later, asks the financial institution if the money is "available." When told yes, the consumer assumes that they can safely draw upon that money. That is not the case! Until the financial institution can confirm the funds have been "finally collected", the consumer is responsible for any funds they may withdraw against that check deposit. The amount of time it can take for the bank to finally collect the money can vary, particularly with out-of-state or out-of-country checks. In most cases, victims report that they wired money to the check issuer only to find that the deposited check was uncollectible.
A check of Bureau reports in other states shows that the company also operates as USA International, Inc., American Direct Sweepstakes, International United Exchange, Gateway Direct, USA Direct Sweepstakes, US International, Inc., BD Financial, International Funding, American International Lottery, and USA Direct, Inc.
These scam artists are also taking advantage of new use of Voice over Internet Protocol (VoIP) technology designed to inspire trust on the part of the consumer. This allows the telephone number displayed on the consumer's caller id to be that of a local established company.
Consumers must realize the danger in responding to these notifications. If they cash the counterfeit checks, they can end up liable for any funds they spend while waiting for the funds to clear. Even if no money is transferred to these organizations, simply providing an ID or bank account details to an unknown party makes consumers vulnerable to identity theft and fraudulent use of their bank account. This is an attempt to steal your money or identity, by a person masquerading as a lottery official.
If you have won a legitimate, legal lottery, you do not have to pay taxes, custom fees, shipping or handling or any other fee before receiving your winnings. In addition, it is illegal to participate in a foreign lottery through U.S. mail.
Those who have been victimized by a phony check drawn on a federally insured financial institution should phone the Federal Deposit Insurance Corporation at 877. 275.3342. If the check is drawn on a foreign bank, contact the United States Secret Service at 202.406.5572 or go to www.secretservice.gov.
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