08/26/08 — Better Business Bureau uncovers new scam

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Better Business Bureau uncovers new scam

By Matthew Whittle
Published in News on August 26, 2008 1:42 PM

RALEIGH -- The Better Business Bureau of Eastern North Carolina is warning consumers to be cautious of an organization posing as Fannie Mae and Freddie Mac mortgage lending companies. The scammers are sending letters announcing a lottery that gives people who lost a home a chance to buy another.

According to the letter, the F&F Equity Draw has $50 million to give away, and recipients "have emerged a winner...of $5 million."

When a Better Business Bureau representative contacted the phony Fannie Mae and Freddie Mac, he was told to use Western Union to wire $850 to a Las Vegas location.

Individuals who fall for this scam will lose the money they send in, and they will receive nothing in return.

"It's shameful that people are taking advantage of an already sensitive situation," says Beverly Baskin, president and CEO of the BBB of Eastern North Carolina. "Consumers should verify the identity and legitimacy of an organization before sending any information or money to them."

If you receive a letter proclaiming you a winner or to avoid falling prey to scammers, visit www.bbb.org.