Better Business Bureau warns that a new scam is fraudulently using the organization’s name in order to steal tens of thousands of dollars from victims who are led to believe they have won a lottery. BBB has been notified an individual was contacted over the phone by someone claiming they were with the Council of Better Business Bureaus (CBBB). The caller used the name Jacob Chasen and offered his phone number, however, it is not a BBB number.  The caller indicated the individual had won a BBB lottery, but to receive the winnings, taxes and fees must be paid in advance.

“Many people are struggling in the current economy and when someone tells you that you’ve won millions in a lottery, it can seem like an answer to prayer,” said Stephen A. Cox, President and CEO of CBBB. “Every year, tens of thousands of people contact BBB about a suspicious lottery and instead of cashing in, many lose thousands of dollars they don’t have.  This one involves our name and so we want to get the word out right away that this is a scam.”

Better Business Bureau reminds consumers that anyone who receives a call, letter or e-mail about winning a lottery should consult the following checklist to avoid falling victim to a lottery scam:

Make sure the story checks out. Always confirm the facts directly with the organization the representative claims to be from—whether it’s Better Business Bureau or any other organization. Use contact information that you found on your own from the organization’s website; don’t rely on phone numbers or web links provided by the representative. Scammers often pretend to be from legitimate businesses or non-profits and a quick call directly to the organization can help set the record straight.

Never pay money to get money. Lottery scammers make their money by convincing victims that they have to pay money up front—to cover such costs as taxes or fees—in order to receive their winnings. Because it is extremely difficult for the victim to track or retrieve money sent via wire transfer, scammers will often use this as their payment method of choice.

Don’t fall for the phony check. Scammers will often send a check in the mail to the victim with the instructions that—in order to receive the full prize—he or she must deposit the check and wire back a portion of the funds to cover fees or taxes. This gives the victim a false sense of security because the check will clear initially but eventually be discovered as a fake.  Once the money is withdrawn from a victim’s account, he or she has lost  the funds sent to the scammer.

If you have been contacted by someone indicating they are a Better Business Bureau employee and have money to offer you, we urge you to contact your local BBB immediately to report the incident.