Minnesota Fraud Enforcement Partnership says
‘No more Minnesota Nice’ to scammers

BY JA STROM
Anyone can be the target of a financial fraud. But the elderly are often among the most frequently targeted. A recent WCCO-TV report estimated that 60,000 Minnesotans had been victimized by scams, suffering losses of more than $30 million.

One effort to fight scams like these is the Minnesota Fraud Enforcement Partnership, a coalition of private and public partners, organized by the Minnesota Department of Public Safety. Their goal is to increase awareness and combat fraudulent lottery and sweepstakes crimes. Members include the ElderCare Rights Alliance, AARP, IRS, and Minnesota Bureau of Criminal Investigation.

Scammers have long found the Midwest fertile ground for their fraud campaigns. And, John Willems, director of Minnesota's Alcohol and Gambling Enforcement division of the Department of Public Safety says Minnesota is a well known target outside the U.S. "I don't know whether it's the Minnesota Nice. I don't know if it's the Midwestern attitudes and trusting nature or whatever it is, but Minnesota is heavily targeted," said Willems.

The Minnesota Fraud Enforcement Partnership has published a consumer guide on its Web site, No More Minnesota Nice, that provides tips on how to avoid becoming a victim. It’s important to talk to your parents or elderly relatives about this possibility and what they should watch out for. They need to be cautious, very skeptical and well informed.

Scammers often disguise their phone numbers to appear to be from the federal government or they pose as representatives of a bank.

The Partnership lists the following information on these common frauds.

Cross-border Fraud

Cross-border fraud is a growing serious problem. With the Internet and cell phones, it is easy for victims to be targeted from anywhere in the world.

The most common cross-border frauds involve:

• Phony prize promotions
• Foreign lottery schemes
• Travel offer scams
• Unnecessary credit card loss “protection”

The following warning signs may keep you or a loved one from being victimized:

• Be wary of anything that promises large sums of money, such as sweepstakes or lottery winnings, in exchange for advance payment.

• Don’t be pressured into making a decision about an offer. Check it out first!

• Be cautious about any business that tries to conceal their mailing address and phone number.

Foreign Lottery Fraud

Playing a foreign lottery through the mail will pretty much guarantee that you will lose. Once you play, you’ll be put on a list. And you can count on receiving more “chances” to play - and lose.

Things to know about foreign lotteries:

• It’s illegal. A federal statute prohibits mailing lottery tickets, advertisements or payments to purchase tickets in a foreign lottery.

• Foreign lottery agents take your money and don’t even buy the tickets.

• Scammers will tell you you’ve won and want to charge you a fee to collect nonexistent winnings.

• Don’t give out personal or financial information to anyone over the Internet or phone who tells you you’ve won — but need to pay taxes or a fee to collect your winnings.

Sweepstakes and Prize Scams

Every day, Minnesota consumers receive sweepstakes promotions by phone, over the Internet or in the mail. If you have to pay to play or pay to receive your “winnings,” the promotion is a scam.

You never have to pay to enter a sweepstakes. That includes paying shipping and handling fees, taxes or buying a product to receive your “prize.” Those sweepstakes that notify you by a postcard that you’ve won a free prize are run by con artists whose sole purpose is to rip you off. And that “free prize” could end up costing you thousands of dollars.

Ask the following questions to evaluate the legitimacy of sweepstakes or other promotions:

• Are the rules and entry instructions for the promotion easy to find and understand? If you can’t understand what you must do to be eligible, don’t respond.

• Remember, you never have to pay to play when the contest is legitimate.

• Does the prize company ask for your credit card number, bank account information or social security number? No legitimate prize company asks for this information to declare you a winner.

(Posted January 4, 2010)