Lottery scam artists
prey on isle seniors
A pay-ahead scheme with a local address
brings warnings from the police and banks
CrimeStoppers, the U.S. Postal Service, the Better Business Bureau and local financial institutions are warning Hawaii residents about an advance-fee scam that has victimized seniors here and on the mainland.
On Aug. 19 an 85-year-old Illinois man received a letter from International Payout Services, 320 Lewers St. in Honolulu, stating that he won $470,000 cash in a lottery.
A fraudulent $4,500 check -- ostensibly to cover advance processing fees and insurance and supposedly from a Hawaii bank -- was enclosed with instructions to contact an individual to activate an account before depositing it. The letter further instructed him to wire $4,100 to an account. It warned him to keep the information confidential and that he would receive the lump sum when fees were paid.
However, the Illinois man did not follow the directions.
Police said International Payout Services is not registered to do business in Hawaii, and the address given is a Waikiki hotel.
Police said there have been at least nine counterfeit checks received by the bank this summer. However, there has been no loss to the Hawaii bank.
The U.S. Postal Service in San Francisco has received six documented complaints regarding the company since July.
A New York man lost $4,815 in this scam.
In some cases the victims are directed to wire money to the service via Western Union. The letter gives a Vancouver, B.C., fax number.
Police warn Hawaii residents, who have also been victimized by similar scams, that once the money is placed with Western Union, the recipient has full control of the funds and may direct them to be sent anywhere in the world.
Money sent out of the country in scam investigations is almost never recovered, according to police.
Police offer a few tips to avoid becoming a victim of a scam:
» You do not have to pay insurance, processing fees or taxes before receiving any sweepstakes or prize.» Beware of such a letter that warns you to keep the information confidential.
» When in doubt, check with the Better Business Bureau before sending money or information to companies you have not solicited.
