Rockholds woman gets fake sweepstakes check

Rockholds resident Sharon Helton, like most would in these tough economic times, was at first excited when she received the notification letter in the mail from "Reader’s Digest" informing her that she’d won a $185,000 sweepstakes drawing.

She was instructed in the letter to deposit a very authentic looking check for $2,900 into her bank account, then called her "file agent," Steve Harmon, straight away for further instructions.

That’s when she became suspicious.

The letter came from a Canadian address. The telephone number, likewise, originated in Canada.

She called and "Steve Harmon" had an oriental accent and instructed her to do something very odd. He wanted her to withdraw the money she just deposited in her account and send it to him so he could pay the taxes on her winnings. Also required were directions to her home so she could be presented with her winnings by a special courier.

"When I called him, he was Chinese. I had trouble understanding him. I asked him who could I call to find out if this is legit. He said you are talking to him," Helton said. "I just knew right then something was wrong. It was too good to be true."

Helton’s instincts were correct.

She started asking herself a wave of questions. Would such an important notification of winnings just come in the regular mail?

How could she win a contest she had never entered?

Why was it sent from Canada?

Helton called the Better Business Bureau of Central and Eastern Kentucky with her suspicions.

"We get calls like this every day about different scams," said Heather Clary, Director of Communications of the BBB of Central and Eastern Kentucky. She actually spoke to Helton about the scam and advised her what to do.

"The fact that it came from Canada, that’s red flag number one," Clary said. "A lot of this stuff comes from Canada or other countries. The scammer know that if you fall for what they are trying to do it will difficult for the authorities to do anything about it since they have no jurisdiction."

Also, Helton thought it was odd that two rival companies – Reader’s Digest and Publisher’s Clearinghouse – were both named on the letterhead as sponsoring the contest.

"Why would two companies that are competitors have their name on this together? That’s just not realistic. The scammers love to use the names of legitimate, reputable companies that people recognize so they will trust them," Clary said.

Clary explained that once the check is cashed, scammers often would ask their victims to withdraw the money and send it to them to pay fees or taxes. Once banks find out the checks are drawn on fake or non-existent accounts, the victim is stuck paying the bill.

"Many of these checks look very real," Clary explained. "Many times they are stolen. People have to ask themselves why a company wouldn’t just pay any taxes or fees themselves instead of sending it to the winner to send back to them. That just doesn’t make sense."

It is illegal for companies that offer prizes to require winners to pay them fees or taxes on the winnings. Those funds are paid by the winner directly to the IRS.

Helton said she contacted the News Journal primarily because she did not want others to fall for the scam.

"When I got it, it really piqued my interest," Helton said. "It just looked so real. Other people should know about this so they don’t’ fall for it."

Clary said anyone who is the victim of a Canadian scam can contact a task for established in that country to fight scammers. Information can be found by going to www.phonebusters.com or by calling 1-888-495-8501.

"These con artists are often so difficult to find because they hide behind fake addresses and spoofed phone numbers, post office boxes, etc. It’s best to be on the defensive from the beginning," Clary said.

Anyone with further questions is encouraged to call the BBB at 1-800-866-6668.