The letters contain a forged MAG Mutual Insurance Company letterhead and makes claims that the recipients have won $250,000 in a contest. Inside the envelope they have placed “a worthless check allegedly backed by MAG Mutual, for approximately $2900 to cover ‘administrative payment and clearance fees.’"
The scam consists of directing recipients to deposit the fake check, “then write one of their own and send it to cover the ‘administrative’ costs of receiving their full winnings.” Oxendine goes on to explain the rest of the scam saying, “The plan these crooks have is that the consumer's check will be cashed before they and their bank realize the fake check is worthless.”
To reiterate, MAG Mutual Insurance Company is not perpetrating this scam but has had their logo stolen and placed on the letters and checks to make the whole ruse look more legitimate.
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