SpeakOutOhio > Blog > October 2009 > Scam uses fake checks from insurance companies > Tell a Friend About Fake Insurance Check Scams

Tell a Friend About Fake Insurance Check Scams

Help make sure your neighbors are aware of this fake insurance check scam by sharing this message

This is how the scam works:

Consumers receive checks that appear to be from companies such as Nationwide Insurance, Infinity Insurance and Progressive Insurance. The checks range from $3,500 to $4,900 and come with a letter informing the recipient that they won a $150,000 “Consumer Promotion Draw” because they shopped at select retail establishments during a specific period of time. The letter goes on to explain that the check has been issued to cover the “Non-Resident Government Tax” or the “Tax Clearance Fee” the consumer will have to pay to a British Tax Officer.

Recipients are told that in order to receive the $150,000 prize, they must cash the check and then send between $2,800 and $3,750, by Moneygram International or Western Union Money Transfer, to an address located in the United Kingdom. While consumers are given a toll-free number to call, they are asked not to talk about their winnings until the claim has been processed.

If a consumer were to cash the phony check, they could find themselves owing the bank the entire amount of the check plus additional fees charged by the bank.