A new mail scheme uses insurance companies as a ploy for counterfeit checks. The image to the right is of one of the checks used in this ploy. This is how the scam works:
Consumers receive checks that appear to have originated from insurance 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” due to the fact they shopped at select retail establishments located in the US, Canada and United Kingdom 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.
Consumers should beware of “advanced fee scams” like this as they could lose a great deal of money. In this particular situation, 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. Be skeptical of any correspondence offering a large sum of money in exchange for a fee or specific personal information, such as a bank account number or your social security number.
- Question the validity of any correspondence containing spelling or grammatical errors.
- Be leery of checks received from companies you do not do business with. The check is most likely fraudulent.
- If the name of a well known company is noted on the correspondence received, contact the company to verify the legitimacy of the letter.
- Be wary of sweepstakes or contests that require you to send money to a P.O. Box, a drop-box or an overseas address before you can claim your prize.
- If an offer sounds too good to be true, it probably is.
Ohioans who receive or have received what appears to be one of these checks allegedly from an insurance company should immediately contact the Ohio Department of Insurance Fraud Division at (800) 686-1527. Ohioans who receive or have received a similar check allegedly from other types of businesses should file a complaint with the Ohio Attorney General’s Office or call the Help Center at (800) 282-0515.
Links
Fraud complaint form – Ohio Department of Insurance
File a complaint – Ohio Attorney General’s Office
View a letter and fraudulent check – Ohio Attorney General’s Office