If it sounds too good to be true, it probably is!

 Two versions of a confirmed type of telemarketing fraud have been reported by numerous members to WSECU.  The old adage, “If it sounds too good to be true, it probably is!” certainly applies here.

 The first scam involves the Canadian Lottery.  Here’s how it works:  a consumer receives a call from a person who purportedly represents the Canadian Lottery.  The caller states that the consumer has won a cash prize and has only to submit their personal bank account information to receive the prize via a wire transfer.

 Shortly after the consumer provides their account information, they receive a notification in the mail requesting them to send money to the Canadian Lottery to cover the cost of the wire transfer and account set up.  What is this?  Phone Fraud!

 Another version involves a caller stating that the consumer has qualified for a “free grant” from the federal government.  The amount is about $5,000.  First they ask if the consumer knows what a grant is, then explain it anyway while stressing the fact that it is “free money that you don’t have to pay back.”

 The caller will then gathers address and bank account information in order to “send the money to you.”    The scam works several ways – they may claim that this is simply a free transaction, or they could ask to charge your bank account a fee for processing, or ask to bill your credit card.  And what is this?  Again, if it sounds to good to be true, it is.  When was the last time you heard of the government giving away  “free money”?

 How do you prevent this? 

1. Never give your bank information or credit card information to anyone over the phone unless you initiated the call.
2. Use Caller ID to get the phone number they called from and report it to the Attorney General’s Office.
3. Register your home phone number with the Do Not Call Registry to eliminate telemarketing calls in the future. www.donotcall.gov
4. You should never have to pay money to receive winnings.  Not even a penny.
5. If it sounds too good to be true, it’s probably a scam!