A local man was almost pulled in by a foreign lottery scheme and is now receiving harassing phone calls demanding payment from the scammers.

Jim Baker says he got a call saying he had won a cash prize and was then asked to give some personal information in exchange for mailed-out cheques that could be cashed at an American Bank.

Baker then received a cheque for $1,000 from Global Lottery and was specifically asked to cash it at Mutual of Omaha Bank.

“They say I had won 840 some thousand dollars and a new Mercedes Benz, but then they said I had to pay some kind of a fee for filing and everything and Canadian taxes. Well that's a bunch of BS because you don't pay taxes on lotteries up here,” said Baker.

He says he realized it was a scam after a few calls back and forth and so he didn’t send any money.

Baker and his wife stopped communicating with the callers and thought that was the end of it but soon started receiving harassing phone calls from the company demanding payment.

The Bakers were inundated with calls and have stopped answering their phone unless they recognize the number.

“If you have engaged with them and picked up the phone and you’re in that conversation, Now’s the time to tell them it is a scam, please don't call here anymore and hang up. Any kind of encouragement from you, they're going to keep calling and calling,” said the BBB's President and CEO Sandra Crozier-McKee.

Here’s how the scam works:

  1. People will receive a phone call from someone claiming to be from a lottery company, usually called Global International, Mega Millions or something similar.
  2. In order to collect the winnings, people are told to either wire money or provide personal information in order to receive fraudulent cheques and told to cash them at a specific bank.
  3. Those who do wire money or cash the fraudulent cheques never see their prize or their money.
  4. Those who do not wire payment receive harassing phone calls several times each day demanding payment. 

Crozier-McKee says scammers hope for inexperience and an emotional reaction to winning so it pays to be cautious.

"It can be easy for anyone to get caught up in the excitement of winning a luxury prize or lottery," she says. "Scammers prey on people's emotions so it's crucial for people to keep their heads, remain calm and try to evaluate the situation objectively."

The BBB has a few tips to avoid being pulled in by scammers:

  • Understand where and how your information will be used. By signing up for a contest at a trade show or similar events, you run the risk of having your personal information sold or shared with other telemarketers.
  • You shouldn't have to pay to claim your winnings. Legitimate sweepstakes don't require you to pay to claim a prize. If you have to pay taxes or shipping or handling charges, it's not a prize.
  • If you didn't enter, you can't win. You have no chance of winning a prize if you did not enter into a sweepstakes or contest.
  • If you are asked to wire or send money, walk away. Do not send any money by cheque, money order or money wire transfer to claim your prize.
  • Confirm the mailing address. Contact the company directly or check out their official website to confirm their legitimacy before accepting a prize.
  • Read the fine print. Before accepting a prize, read the terms and conditions carefully for hidden fees or restrictions.
  • Never give out personal information over the phone. Never give your checking, credit card or other bank account information over the phone in response to a sweepstakes promotion.