Big bucks are too good to be true

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Grace Rowden would like to know why she has been receiving fake lottery checks which apparently originate in Nigeria. Rowden's address was digitally removed from the photo. Bob Pennell / Mail Tribune photoBob Pennell

When Grace Rowden received a letter and check saying she'd won the Australian lottery, she didn't buy a Ferrari or go on a Mediterranean cruise. Instead she put the $4.8 million check in an envelope with seven others.

"I told the ladies around here that I was going to wallpaper with them," said Rowden, 85, a Medford native.

Rowden is one of hundreds of Oregonians who have been targeted by international money transfer schemes that range from fake lottery tickets to Craigslist scams. Each scheme has two common characteristics — they are international and they require you to wire money in order to deposit the check or money order. In every case, the victim is scammed and the money is gone.

Fortunately, Rowden knew better than to deposit the unexpected checks.

"I'm not about to take it down and cash it and then have to pay it all back," she said.

Rowden's first check arrived in December 2008 from the "Reader's Digest Foundation" for $5,000. She has received seven checks since then, ranging from $4,000 to her most recent, $4.8 million from the Australian lottery.

Rowden called the police, who came and confirmed that the checks were phony. The checks came with a letter that said Rowden would need to call an agent before the money could be deposited. Rowden tried calling the contact provided, but the number was always unavailable. All the checks had Canadian postage.

International money transfer schemes placed third on the Oregon Department of Justice's list of the top 10 consumer complaints in 2008, said Jan Margosian, consumer information coordinator for the Oregon Department of Justice.

"There is no doubt in my mind that there is an increase in these types of scams because of the bad economic times because people are so desperate for money," she said. "They want to believe it more than anything in the world."

Canadian postage doesn't always mean the check is coming from Canada, rather it is coming through Canada, she said.

The majority of the checks, 85 to 90 percent, have been tracked back to Nigeria, although some have come from Spain, Australia and South Africa, Margosian said.

"You should wonder why you're getting this check," she said.

The checks often require the person to pay administrative, processing, government or attorney fees or a gift tax, said Sgt. Kevin Walruff, a Medford police detective with the financial investigation section.

"There is not a whole lot we can do once the money has left the country," he said.

"Most people think, 'Well, gee, I'm getting a check for $20,000, I can afford to send them $2,000 for a gift tax,' " Margosian said.

The money transfer schemes can be disguised in many ways, including mystery shoppers, eBay, the lottery and Craigslist. More than 300 different scenarios have been identified. A number of Portland State University students who had posted an ad for a roommate reported that an "international student" had replied to their ad and offered to send cashier's checks to cover the costs and asked that the PSU student wire the "extra" money back, Margosian said. Similar instances have occurred on Craigslist.

"You put a car on Craigslist, and a person from Nigeria offers full price plus extra for shipping and asks you to wire them the extras," she said. "Anything where you have to wire money, a big, red flag should go up."

According to the Department of Justice, there have been 933 written complaints from Oregonians who were victims. More than 130 people actually wired the money, which resulted in $1.2 million in losses. More than 700 people sent uncashed, counterfeit checks totaling $2.45 million to the attorney general.

"The key is they are always asking to wire extra money and the check is usually more than you originally were told," Margosian said. "Once you wire it, it is gone."

With unemployment rates as high as they are, people may take more risks than they normally would, Walruff said.

The lottery checks look like real checks, often from a business, bank or a U.S. money order. Do not sign the check unless you are sure it is a valid check.

"When you endorse the back of the check under the Uniform Commercial Code, you are saying the check is good," said Margosian.

When the bank realizes that the check is counterfeit, you, the endorser, are responsible to pay back the amount of the check, Margosian said. She recommends that those who are receiving phony checks call the attorney general's consumer hotline, 877-877-9392, or give it to the bank unendorsed. They will be able to tell you whether your check is real or not.

Walruff suggests investigating the financial institution or business listed on the check by calling or Googling the company, then shred it, he said.

"The Oregon lottery and Megabucks are the only legal lotteries in the state of Oregon," Walruff said. "Be suspicious of free money."

"We cannot get it back. Law enforcement cannot get it back," Margosian said.

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