Don't cash checks from lotteries you never entered warn consumer groups

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In a recent announcement, St. Louis Better Business Bureau President and CEO Michelle Corey talks about the latest scam data. PHOTO: Melody Walker, St Louis Public Radio

There are many ways that a lottery scam can trip up even the most careful of us, and here's one of them to add to your list.

A St. Louis couple received an unexpected check for $4,350. It was the first of their alleged $250,000 lottery winnings.

According to the letter, to claim their prize, they simply had to deposit the check and wire money back to the lottery commission, to 'cover the fees.'

A similar scam check to the one the St Louis couple received.

It turned out that the lottery commission address was a fake one, and the bank account was the scammer's one.

Unfortunately, people still fall for these scams, and the elderly in particular are frequent victims, say the Consumerist.

"At our age, we're not as sharp as we were when we were younger, and I think we're pretty trusting as a generation, so that’s too bad," lamented the woman who received that $4,350 check.

The Better Business Bureau Scam Tracker website is a useful tool.

The Better Business Bureau says scams involving fake sweepstakes and lotteries are on the rise in St. Louis and around the country, reports Melody Walker.

More than half a million consumers in the U.S. and Canada lost $117 million to scammers in 2017.

Federal Trade Commission studies have found less than 10 percent of fraud victims ever complain to the B.B.B. or law enforcement.

It’s thought the actual level of fraud could be at least 10 times larger than these numbers.

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“Some fraudsters contact victims on their phones, using text messages or pop-ups on the phone browser claiming people have won large gift cards or new smartphones,” said C. Steven Baker, B.B.B. International Investigations Specialist.

“The goal of this type of fraud is to gather information to sell to other scammers, and to get people enrolled in ‘free-trial’ offers,” he said.

BBB offers the following tips for consumers to avoid lottery or sweepstakes fraud:

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  • True lotteries or sweepstakes don’t ask for money before you claim a prize. If they want money for taxes, themselves, or a third party, they are most likely crooks.

  • Call the lottery or sweepstakes company directly to see if you won.

  • Check to see if you won a lottery. Call the North American Association of State and Provincial Lotteries at 440-361-7962 or your local state-lottery agency.

  • Do an internet search of the company, name or phone number of the person who contacted you.

  • Law enforcement does not call to award prizes.

  • Talk to a trusted family member or your bank. They may be able to help you stay in control of your money in the face of fraudster pressure.