TDCI: Be Alert For Lottery Scam Artists Preying on Seniors

NASHVILLE – A devious lottery scam involving the promise of cash prizes to winners in exchange for “small” payments threatens to make losers out of unsuspecting Tennessee senior citizens. 

The Tennessee Department of Commerce and Insurance (TDCI) has commenced an investigation into the alleged wrongdoing and is warning senior citizens, their families, and caretakers about the lottery scam. The incident in question occurred in the Clarksville area but may also be occurring elsewhere in Tennessee.

“The information that we have uncovered thus far reveals a potential web of scoundrels, preying on unsuspecting and innocent people,” said TDCI Commissioner Julie Mix McPeak. “We have alerted criminal authorities and will pursue any legal avenues available to this Department to chase down this fraud and warn the general public.”

In an alleged fraud being investigated by TDCI, a senior citizen living in an assisted living facility received a cold-call from a person(s) impersonating a lottery official and congratulating him on his lottery winnings. After establishing a relationship with the senior citizen, this person(s) allegedly sought to help him liquidate certain financial holdings to help him pay for “identity bonds,” taxes, and/or processing fees on his winnings.  

“Unfortunately, in many cases, it seems that once a person is pegged as a target, his/her information may be shared with other criminals seeking to take advantage,” said TDCI Assistant Commissioner Michael Humphreys. “The fraud may morph into related or entirely new frauds designed to continue to steal money away from the target. That appears to be the case in our investigation.”

In addition to posing as representatives of this fake lottery, the swindlers have also impersonated federal government employees and major financial institutions.

Identifying a potential fraud can sometimes be tricky, but the following tips may help consumers detect whether an offer may be fraudulent:

• No or limited contact information.  Official correspondence generally includes contact information at the bottom of the correspondence, including a name, sometimes a signature, affiliation, and phone number and/or e-mail address. 
• High pressure tactics.  If the person soliciting information or an investment used high pressure tactics, such as “You must act now,” it might be a fraud.
• Misspellings.  If an “official” letter is sloppy and misspells words or otherwise uses poor grammar, it may be a fake. 
• Fake letterhead.  A fraudulent letter may have the appearance of being an “official” document because it has a regulatory or financial institution’s letterhead, but if it looks as though the letterhead or seal is fake, it may be a fake. Criminals have been known to copy and paste images from websites to give the appearance of official correspondence.
• Fake excitement.  Official correspondence will typically read more “matter of fact” than full of excitement.  The following sentence was taken directly from an alleged fraud: “We apprehended the individual that you had made these payments to and we are elated that we could have solved this heinous crime.” (emphasis added)
• Fraud Warning.  Official correspondence will generally not include a fraud disclaimer or a warning against using the correspondence.  The following sentence was taken directly from an alleged fraud: “This document belongs to the FBI and should not be used in any fraudulent manner.”
• If an offer is too good to be true, it is usually false or fraudulent.

Tennesseans are encouraged to reach out to the TDCI if they have any questions or concerns about a potential fraud. Call us at (615) 741-4737 or 800-342-8385.

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