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Counterfeit Lottery Checks

The most sophisticated of the foreign lottery scams is actually a twist on a common counterfeit check con. This new version works because it doesn't ask for any upfront fees or account data and it adds a measure of credibility in the form of an authentic-looking check. Recently, victims throughout the United States received fraudulent checks of this nature appearing to originate from Clorox. Here's how the scam works:

• You receive an email or a letter saying you're a winner. If you email or call to claim your prize you're told that you'll be mailed a check to cover any applicable taxes or fees along with instructions to help you collect your winnings.
• The check arrives in the mail. It comes along with a bill for processing charges and directions on where and how to pay off those charges once you've cashed the check. Once the taxes are paid, the letter says, you'll receive your jackpot.
• You cash the bogus check, which looks real enough to fool the bank teller too. Then you wire or express mail a check to cover the "taxes."
• The lottery check turns out to be counterfeit. You're liable to your bank for the lost money and you never hear another word about your winnings. Even worse, you may face a check fraud investigation yourself.