Hawaii BBB warns consumers about fake prize scam
By Robbie Dingeman
Advertiser Staff Writer
Hawaii�s Better Business Bureau is warning consumers about phone scammers who are using the BBB name to trick people into believing they have won a prize package.
Hawaii�s BBB got the first report of this fake prize scam last week, and similar stories have emerged from BBBs on the Mainland as well.
In one instance, a Honolulu woman got a phone call from a man named Michael Kobani who said he worked for the Better Business Bureau. He told her that she had won a cash prize package and he was trying to help her claim it.
�Kobani� told her that she had won $900,000 in a sweepstakes lottery and all she had to do to receive the prize was wire $1,000 to his California address. But a savvy employee at the Dillingham Money Mart refused to conduct the transaction.
When he did not receive the money, �Kobani� called the woman the next day and told her to go to her bank and send him a money order instead. That�s when she called Hawaii�s BBB.
�Scammers use the well-known and trusted name of BBB to make themselves seem legitimate,� said Dwight Kealoha, CEO of Hawaii�s BBB.
�Aside from trying to help people avoid these scams, BBB has nothing to do with sweepstakes, giving away money, or contacting prize winners,� he said.
Fake lotteries, sweepstakes or other prize offers was the number one scam in the state last year, with Hawaii�s BBB receiving more than 1,800 related complaints, reports and inquiries. However, some people do not want to believe that the unexpected news of a windfall is simply setting them up for a rip-off.
�Despite our best efforts to convince her otherwise,� Kealoha said, �the Honolulu woman is still accepting calls from this guy and she really doesn�t want to believe that he�s up to no good.�
Kealoha said his office forwarded the information to federal authorities for investigation.
He offers some tips on how to avoid prize fraud:
� Do not pay to collect your winnings. Legitimate sweepstakes or contests don't require up front tax payments, or charge insurance, delivery or other fees to collect a prize.
� Hold on to your money. Scammers pressure people to wire funds through money transfer companies because wiring money is the same as sending cash � but when the money's gone, there's very little chance of recovery. They may also ask for a check or money order sent by overnight delivery or courier. Rip-off artists like these services because they can get to your money before you realize that you've been cheated.
� When in doubt, check it out with Hawaii�s BBB. Verify written offers and tell any suspicious caller that you are going to check with BBB before agreeing to anything � and do so.
� If you or someone you know is contacted about winning a prize in a contest that was not entered, report it to Hawaii�s BBB at 536-6956 or toll free from the Neighbor Islands at 877-222-6551.