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CURRENT ISSUES
Topics of Interest to Consumers
BEYOND THE BORDER SCAMS
Cross-border scams
target elderly Americans and are costing consumers thousands
of dollars. The
FTC estimates the losses exceed $3 million dollars annually.
The scams are simple but effective and many operate out
of Canada.
A typical
“Canadian Lottery” scam uses a boiler room where scammers
telephone elderly victims in the United States and falsely
tells them they have won a large sum of money in a lottery.
The scammers are smooth talking professionals who can
“read” and take advantage of a victim’s weak spots. The
calls often come between 9 a.m. and 4 p.m., when scammers know
they have an increased opportunity to reach the elderly.
Frequently their aim is to find people in the early
stages of senility who are susceptible to repeated scams.
It has been reported that scammers are able to obtain
listings that identify the target population by age and
medical condition.
Victims are told
that they have to send a certain amount of money before
receiving the purported prize.
The scammers tells victims that the advance payment is
for taxes, administrative costs, attorney’s fees of
“cross-border fees.”
Victims are told to keep all information confidential,
not even to tell family members.
In many cases the scammers call victims who have sent
money again to tell them that they have won additional prizes
that will be awarded if they will send additional money. Of course the scammers never send the “Lottery Prize”
because there
is no prize.
When the Royal
Mounted Prize Patrol fails to arrive with the winnings and the
victim is unable to contact the scammer.
Even when the victim sends the money by wire service
there is no trail to follow.
Scammers work outside the United States because the
laws are less stringent, detection difficult and even when
they are apprehended the scammers know that extradition and
prosecution is lengthy and complicated.
Frequently, the victim is too embarrassed to tell a
family member, friend or the police that they have lost money.
AND THEN THE
PHONE RINGS AGAIN!
The caller
identifies himself as an Agent with the U.S. Customs Service
or Agent of the Canadian Customs Service.
He is calling because he is investigating a possible
theft and needs the victim’s assistance.
And the victim’s bank account is further depleted.
So what can one do?
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Keep in mind that entering foreign
lotteries is illegal.
q
Ignore all mail and phone solicitations.
By entering just one foreign lottery offer, you’ve opened
the door to many more bogus offers.
Your name will be added to “sucker lists” that
fraudulent telemarketers buy and sell.
q
You should never never send money in
order to receive a prize or other giveaway.
q
Don’t give telemarketers your credit
card or bank account numbers.
q
Contact the police, postal service,
the FTC or CAC. Don’t
be afraid to ask for help.
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