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Better Business Bureau ®
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Southern Arizona
BBB Warns of Latest Mortgage Lottery Scam
August 25, 2008

The Better Business Bureau (BBB) of Southern Arizona is warning consumers to be cautious of an organization posing as Fannie Mae and Freddie Mac mortgage lending companies. The scammers are sending letters nationwide announcing a lottery that gives people who lost a home a bogus chance to buy another.

According to the letter, the F & F Equity Draw has $50 million to give away, and recipients “have emerged a winner…of $5 million.” When a BBB representative contacted the phony Fannie Mae and Freddie Mac, he was told to use Western Union to wire $850 to a Las Vegas location. Individuals who fall for this scam will lose the money they send in, and will receive nothing in return.

“It’s shameful that people are taking advantage of an already sensitive situation,” says Tom Collier, BBB president and CEO.

Consumers should verify the identity and legitimacy of an organization before sending any information or money to them.

If you receive a letter via postal mail proclaiming you are a winner, contact your BBB at 520-888-5353 or the local postal inspector’s office at
(520) 388-5311. If you receive the notice via email, report it to the Federal Trade Commission at www.ftc.gov.

For hunderds of consumer tips and the latest scams, visit our "For Consumers" page.