Promotional and Advance Fee Fraud

Promotional and Advance Fee fraud are two of the most common phishing and spoofing scams in use today. The information below details how each type of fraud works and explains the telltale signs of each.

Promotional or Lottery Fraud

In Promotional, or Lottery, Fraud, criminals try to obtain your financial information by offering money, trips, gifts, lottery winnings and lost funds. In the email or letter, they will ask the reader to respond with personal "verification" details, or worse yet, an advance fee, to become eligible for the false winning. Some items sent via the U.S. mail also include a counterfeit check in an attempt to lend a sense of credibility. The criminals inform the recipient that the check is a deduction from the total award and will assist in paying fees, taxes or insurance needed to obtain the winnings.

Many times the criminals will list a telephone number with an area code that is not near the address of the business named on the communication. Check to make sure the area code of the telephone number(s) on any correspondence matches the area code of the business allegedly sending the item.

Do not provide any personal or banking information online or over the telephone without checking the reliability of the offer through the company or financial institution first.

HSBC, HFC and Beneficial do not participate in sending letters or emails requiring personal "verification" details, or the payment of fees, taxes or insurance prior to obtaining a loan.

Advance Fee or "419 Fraud"

This creative and dangerous scheme called "Advance Fee Fraud" or "419" which is named after a section in a foreign country's criminal code covering such activity. The recipient receives an unsolicited letter or e-mail offering a generous reward for helping to transfer large amounts of money from another country, most often from Africa. Although this may sound tempting, do not provide any personal or banking information online or over the telephone. The offer is most likely fraudulent, and should be reported to the authorities.
HSBC is committed to the security of your personal and financial information and will provide the tools and resources to secure your online experience.

• If you receive any suspicious mail that appears to come from HSBC, HFC or Beneficial, contact us immediately at (800) 659-4774 extension 6788.