Congratulations! You've just been ripped off

Herb Weisbaum • Profile • E-mail

Imagine getting a letter from Publishers Clearinghouse that says you’ve won a million dollars. You might be so excited you wouldn’t even question if it’s legitimate. Con artists are counting on that. They’re sending these official-looking but phony prize notices to people all across the country.

Lois Zupan of Morton, Wash., got one. “Congratulations!” it said. “The team at PCH is thrilled to officially announce your name as the third place winner of the 15 Million Dollars ($15,000,000) Grand Prize Draw sponsored by Martha Stewart Living Magazine.”

The envelope included a check for $5,889 to cover “any outstanding fees that had not been paid by PCH directly.” All Lois had to do was call a toll-free number and her representative would explain everything.

She called and spoke to Kevin. She remembers him as “very nice and very professional.” He told her to deposit the check and then call back. Lois went to the bank and waited a week before calling back. She wanted to make sure the money showed up in her account.

Kevin told her to wire the money to him in Canada. Just minutes after doing that, Lois got a call from her bank. The check she had deposited was bogus. By then, it was too late to stop the wire transaction. Lois knows she’ll never see her money again.

Scammers getting more devious
“We are angry that scam artists are using our good name and reputation to deceive consumers,” says Christopher Irving, assistant vice president for consumer affairs at the real Publishers Clearinghouse. “There’s a lot of money being lost and we are very concerned about it,” he says.

This is not the first time con artists have hidden behind the Publishers Clearinghouse name. But the bad guys are getting more devious. The current batch of bogus prize letters mentions either Martha Stewart Living or Orpah Winfrey’s O magazine. It’s another way to build credibility.

And there’s that toll-free number you’re told to call. The recorded message answers: “Thanks for calling the Publishers Clearinghouse, where dreams can come true.” But it’s just another ruse.

Why this scam works
The bad guys know a lot more about bank deposits and wiring money than most people. They use this to their advantage.

Bonjour? Is this the IRS? The bogus Publishers Clearinghouse prize letter says an Internal Revenue agent is handling your file and it lists a phone number (with a 514 area code) where he can be reached. I called that number and it’s answered in French! Why would the IRS answer the phone in French? They don’t. This is not an IRS office. It’s a phone number in Quebec where the bad guys are most likely located.

Let’s say you deposit one of those fake checks. You’re skeptical, so you wait a few days to see if the money shows up in your account.  It does, so you assume the check is good. That’s not necessarily the case.

“The only thing the check has really cleared is the bank’s hold period so those funds are now available for you to spend” explains James Perry with the National Consumers League. “It has nothing to do with the check being good or bad.”

If the check eventually bounces – which could take as long as eight weeks – you will be left holding the bag. You are responsible for any withdrawal you make from your account – not the bank.

Why they want you to wire money
A credit card charge can be disputed. A wire transfer is basically a cash transaction. That’s why so many scams today involve these bogus checks and wiring money.

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