Tom Gallagher, Florida's chief financial officer, warned Floridians on Tuesday to be on the lookout for a bogus letter telling them they've won a contest and urging them to send a check to collect the prize.

The letter arrives on forged MAG Mutual Insurance Company stationery and implies the recipient has won $250,000 in a contest. A worthless check is also enclosed for about $2,900 to take care of "administrative payment and clearance fees." The letter asks the recipient to deposit the check and then write one of their own for the costs of receiving the prize that does not exist.

"We are working with company representatives and other state's law enforcement agencies to track down the perpetrators of this scam," said Gallagher, who oversees the Department of Financial Services' Division of Insurance Fraud, which was initially alerted to the scam in recent days. "We will not tolerate anyone trying to steal our citizens' hard-earned money."

The scam perpetrators' plan is to receive and cash the recipients' check before they or their banks realize the check sent with the letter is worthless.

The Department of Financial Services, Division of Insurance Fraud, investigates various forms of fraud in insurance, including health, life, auto, property and workers' compensation insurance. The Fraud Fighters Hotline is 1-800-378-0445. Complaints may also be made via the department's Web site at www.fldfs.com . The site also includes tips on how to avoid getting scammed.

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