LOTTERY players are being warned to look out for scams after a contestant almost had their savings wiped out following their $450,000 “prize”.
Thomas Johnson couldn’t believe his eyes when he received the check for almost half a million dollars along with a congratulatory letter.
Thomas Johnson was almost the victim of a lottery scam[/caption]
The Maryland Lottery has warned people the red flags to look out for[/caption]
“I looked at it and was like, wow, I’m a winner,” the Baltimore, Maryland man told local ABC affiliate WMAR2.
But after his shock subsided, he noticed something was wrong.
“They were going to tell you just pay the taxes with your debit or credit card or American Express, and then, of course, they got you, he went on.
Maryland Lottery has warned people to look out for the warning signs that a lottery prize may be a scam.
The company has urged lottery players to never hand over any money to claim their winnings.
“No legitimate contest that legally operates in this country can require you to pay anything to win, and if it’s taxes, it comes out of the supposed winnings before you ever see a dime.”
Another sample scam lottery letter sent out in Maryland told winners they had been randomly selected from people who pay their utility bills on time.
They were told they had won a $7 million prize.
But in order to claim the money, the winner needed to pay the remaining fees of $4,000 – a fraction of the prize.
Experts warn that criminals use such scams to target thousands of people at a time.
They only need one person to say yes for the scam to pay off.
According to the Federal Trade Commission, lottery and sweepstakes fraud were among the top three reported frauds last year.
Consumers lost over $338 million.
The biggest red flag to look out for is winning a contest you never entered.
Publishers Clearing House and Maryland Lottery said they contact winners of smaller prizes via certified mail, email, or phone but will never ask them to pay money.
So far, several arrests have been made in the state over similar scams.
Earlier this year, two Maryland brothers were accused of stealing more than $3.5 million over three years under a lottery scheme.
Bank tips for avoiding scams
As scams become more sophisticated with the use of artificial intelligence, it is important you know how to spot a scam:
- Be skeptical of online deals that seem too good to be true, especially on social media.
- Scammers will often use tactics to make you panicked so you make quick decisions – be cautious if you are told to take immediate action and verify who has contacted you.
- Chase Bank warns customers to “never return any unexpected funds without calling Chase first.”
- Never send money to someone you have only spoken to online or by phone as this is likely a romance scam.
- Unless you 100% know who you are talking to, never give someone remote access to your device.
- Never accept help from strangers at an ATM and always be vigilant when making withdrawals.
- Do not send money or click any links indicating that you have won a prize.
Source: Chase.com
The Maryland Lottery has provided other red flags to watch out for regarding similar scams.
Never hand over personal data including your Social Security Number, banking information, or other personal data.
Also, never believe anyone who claims to be a representative of Mega Millions or Powerball, as this role does not exist.
