Fallon Long (Edison): Financial Scams & Conmen

There was an article posted today on the News-Press website about a
Cape Coral couple that has been scammed out of a few thousand dollars. The couple received a check in the mail for $4,875 and a letter declaring them the winners of a $1.1 million dollar lottery. In order to claim their winnings, they would have to pay the applicable taxes on them first. They were to do this by wiring $3,835 via MoneyGram to a specified location. They sent the money, and shortly after, they were notified by their bank that the check they had deposited (for $4,875) was no good. They have lost their $3,835 to a scam.

As an employee of one of the nation’s largest banks, I see this scam in particular on a regular basis. Customers come into my branch with fake checks, and letters stating conditions along the same lines as the couple reported in the newspaper. Fortunately, most of my clients realize that they, in fact, don’t even PLAY the lottery, and are able to turn the check over to me so that I can forward it to our fraud department. Unfortunately, I also have clients that fall victim to the scam, and don’t notify me until it is too late. The predators that are perpetrating this scam are taking advantage of trusting individuals that are usually experiencing a time of great financial hardship. The client receiving the letter sees this lottery win as a gift from a higher being, and as the answer to all of their prayers and wishes. It’s really sad when I have to inform them that, not only did they not win a lottery, but that they have also lost their savings as well.

I was completely unaware of this method of scamming until I started with the bank. We have to undergo extensive training upon hire, and a portion of this is dedicated to being able to notice the red flags of situations like these; we have to prevent and protect our clients’ losses. I’ve found much greater use from my training than even that, though. When attempting to sell a set of furniture on Craig’s List, I was contacted via e-mail from a potential buyer. The buyer stated that he would mail me a check, and have a moving company come to get the furniture. I was able to spot the red flag immediately. Like clockwork, I received a fake check in the mail with an explanation of the overpayment stating that it was the fee for the moving company, and that I would need to forward the different by
Western Union to their account. Let me tell you, I wrote that “potential buyer” one nasty e-mail telling him how ashamed of himself he should be!

I think that major financial institutions should more widely publicize the possibility of scams like the one in the newspaper, and offer seminars and training classes for customers on how to avoid loss. Especially in times like these, the economy is prompting people to take desperate measures.

This entry was posted on 26. February 2009 at 01:01 and is filed under Social Problems. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.