Reporting Fraudulent Lottery Scams

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Question:

Should we be reporting lottery scams and if so, to whom? Several of our customers get letters and even checks stating that they've won a lottery, but they are fraudulent.

Answer:

You have suffered no loss. SARs are triggered if there is insider abuse, the amount involved is $5,000 or more in the aggregate and involves money laundering or violations of BSA, the amount involved is $5,000 or more and a suspect can be identified, the amount involved is $25,000 or more regardless of whether a suspect can be identified.

Also, these are typically international scams making investigation and prosecution difficult, and not a priority to law enforcement (in my opinion) when there is no loss. I would educate customers so that they don't fall for these. Educate your staff so they can be on the lookout to assist customers as well.

First published on BankersOnline.com 3/21/05