Wallet Warning March 2022

Avoiding Consumer Cons:

An initiative of Shelby County Trustee Regina Morrison Newman.

Wallet Warning – Lottery Scams March 2022

From The Shelby County Trustee, Regina Morrison Newman

This month’s Wallet Warning is about an oldie but a high-dollar-loss goody – the Lottery/Sweepstakes scam. It’s also known as the “Publisher’s Clearing House” (PCH) scam, although Publisher’s Clearing House itself is legitimate. These types of scams have been around for a long time because they still work. According to our partners at the Better Business Bureau (BBB), 97 people in Shelby County reported losing money to a lottery scam over the last 18 months. All of the reports involved “PCH” scams. The total loss was in excess of $180,000! Nationwide, there were 2,555 reports for a total loss of almost $1,000,000. Roughly 4% of all reports are coming from our area. Even worse, we account for almost 20% of the total losses nationwide, indicating that our neighbors are being targeted and falling for this scam at a higher rate than other areas of the country. Crooks are going to stick with what works, and this one still works because the crooks are very good at what they do. They reach out through a variety of channels including phone calls, text messages, emails, and even social media impersonating well known entities like PCH or a state lottery. They tell folks they have won, but that the winner just has to pay some taxes or fees before their winnings can be released. They require that the fees be paid with gift cards or bitcoin. The fee amount seems small in the face of the alleged winnings so the “winner” pays it. Someone has to win, so why not them. The scammers also tell the victims to keep this quiet until they have the money. Then the winner becomes the victim. The scammers have carefully scripted answers for any questions that arise during the exchange. If people wise up during the transaction, the scammers may resort to threats telling the victims that they are close by and will hurt them or their families if they don’t complete the transaction. The harm suffered by these lottery fraud victims can far surpass the loss of money. It can strain family trust. Some victims have even committed suicide. A few things to keep in mind when faced with one of these scams include:  If you didn’t enter it, it’s likely a scam.  You shouldn’t have to pay money or buy a product to claim winnings.  If you’re asked to pay using a gift card, bitcoin or peer to peer payment app to claim a prize, get a grant, or pay taxes, it’s a scam.  Remember that gift cards are for gifts, not for payments.  Don’t be fooled by the use of legitimate names like Publishers Clearing House.  Don’t trust caller ID. It can be spoofed!  Law enforcement officials do not call and award prizes.  Never provide personal information in response to an unsolicited message of any kind.  Talk to a trusted family member, your bank or call the BBB at 901-759-1300. Trusted friends, your bank and the BBB can help you identify a sweepstakes or lottery scam. Bottom line, if it sounds too good to be true, it probably is. If you think you have been a victim, don’t hesitate to reach out to our partners at the Better Business Bureau (901) 759-1300 or https://www.bbb.org/local-bbb/bbb-of-the-mid-south. If you have heard of scams you would like us to share in our Wallet Warnings, please call us at (901) 222- 0206. We want to help all Shelby County residents avoid scams and the financial hardships that can be caused by them.