Bank VP cautions people over ‘lottery’ and other scams

DANIEL CLIFTON • EDITOR

MARBLE FALLS — It’s one of the toughest things J. Don McAlpin and his American Bank of Texas staff have to deal with: Someone withdrawing a large amount of cash because they’ve “won” a lottery or a car and must send off money to cover “fees” or “taxes.”

“It breaks our heart,” said McAlpin, the vice president of the Marble Falls branch. “They come in here, and we talk to them until we’re blue in the face. But they’re convinced that all they need to do is send some money and they’ll get these millions or a new car. It’s very, very sad and frustrating that we can’t help them.”

McAlpin reports seeing an increase in the number of scams targeting people — particularly older residents.

“Sometimes, the older residents, I think they come from a time where they were more trusting, and these scammers prey on that,” he said. “There are thousands of way to scam, but at the end of the day, if it’s to good to be true, it probably is.”

One of the most common scams McAlpin, the bank and others are reporting is the “lottery” win.

“Usually what happens, they contact you and say you’ve won a lottery,” McAlpin said. “We’ve seen a couple of cases where people receive a letter in the mail and a check. It says you’ve won $2 million, and here’s a check for $5,000.”

But, McAlpin explained, the scammer requests the recipient send $1,500 for fees and other costs associated with winning the lottery. Only there is no $2 million, the check is no good and the person is out $1,500 — sometimes more, much more.

“We’ve had some people go through tens of thousands of dollars because of these different scams,” he said.

Some victims, unfortunately, get hit more than once.

“(Scammers) must have some type of network or share information,” McAlpin said. “Because once somebody falls for one, they usually get targeted by another.”

A follow-up scam McAlpin has heard about is when a victim loses money to a “lottery” or other fraud, they get a phone call from an “attorney” promising he or she can recover those funds. But first, the “attorney” requires a retainer.

“And that’s more money gone,” McAlpin said.

Once the funds are sent it’s gone. Typically, these scams require wiring money or using a pre-loaded debit or credit card. With many of the criminals or criminal networks originating outside the state or even the country, it’s hard for law enforcement to track them down.

The best thing, according to the Texas Attorney General’s Office, is prevention and avoidance. On the AG’s website is a list of frauds and scams along with signs you might be getting taken. The “Five Hooks” are:

• They contacted you.

• They dangle bait in front of you.

• They want personal information.

• First, you have to pay them.

• You have to wire or airborne money instead of mailing.

If you fall victim, the AG’s office said it’s important to report it to the police because fraud and theft are criminal matters. Then, stop any contact with the scammer.

The best protection, according to the AG’s office, is education.

McAlpin agreed.

“We really just need to keep educating people and getting the word out there about this,” he said. “I know there are people who fell for a scam who are embarrassed, but if they know it happened and can help tell others how it happened, that could really help people realize they could get scammed as well.”

While banks can’t stop someone from withdrawing funds, even if staff and officials know the customer is being scammed, staff try to dissuade the person and educate him or her. McAlpin said if there’s another name on the account, the bank reaches out to that person and informs him or her about the situation, hoping a relative or a close friend might have a little more sway over the potential victim.

“We try to sit down with them and explain that it’s not legitimate,” McAlpin said. “If you get something like this, before you do anything, sit down with a (bank’s) branch manger, your pastor or a relative and get a second opinion. You know, if something sounds too good to be true, it probably is.”

Go to texasattorneygeneral.gov, click on the “Consumer Protection” heading at the top and then choose “Frauds and Scams” for more information.

daniel@thepicayune.com