Lottery scams are increasing at an alarming rate across the United States. Several of our own customers have been targeted by these fraud artists. Your best defense is to know what to look for

Lottery scams are increasing at an alarming rate.  They may start by a telephone call, a letter or an email, but they always end the same... the vicitim loses a large amount of money. 

It begins with the recipient being told that they have won a lottery. They are to contact a claims agent to collect their winnings This usually at a free email address or a phone number in Canada. The unsuspecting consumer contacts the claims agent to find out how to claim their prize. This is where the tail goes one of two ways.

1.  Goal - Identity Theft: In this case the victim is sent a claim form to verify their identity. They must return the form with their personal details along with copies of their passport and driver’s license to “verify their true identity.” This is where the scam begins. The fraudsters now have enough information to duplicate the consumer’s identity.

The responding consumer receives an email with three options of how to collect their winnings. They can have the money wired to their bank account, they can open an account with a specified bank (bogus), or they can pick up their winnings personally (normally from Amsterdam).

Most people want their winnings transferred into their bank account. This involves upfront fees for taxes, insurance or even legal fees. Victims transfer money as requested via Western Union. If they do not want to pay upfront fees, they can open an online account with a specified bank, who’s ‘policy’ requires a deposit of around US$3,000. This bank is fake. Alternatively, victims are able to pick up their money personally by travelling to Amsterdam, where they are required to pay a release fee in cash, and receive their winnings in counterfeit currency.

2. Goal - Clean Out Your Savings: In this version a letter is sent to the victim along with a very real looking, but counterfeit check. The check is usually for $3,000 to $5,000. This is alledgedly to cover processing fees for the claiming their grand prize. The vicitim is then instructed to deposit the check and wire a portion the funds to the claims processor in Canada. By the time the check bounces bank, the victim's money is gone. Now they are stuck covering the counterfeit check with their own bank.

In some cases the scam can be worked quickly enough to get a second and even larger check and wire transaction completed before the first check is returned as a counterfeit.

How do you know it's a scam?
1. Did you buy a lottery ticket to the Canadian Lottery? If no, then how could you have won? If yes, then this may be part two of a more elaborate scam.

2. Legitmate lotteries do not ask you to pay for processing fees. If they are goingto be paying these fees for you, why go through the trouble of sending checks and wires? Why not just give the whole check to the processing agent and let them send you a wire for the difference?

What to do if you are contacted? 
Law enforcement strongly advises against any communications with fraudsters who run these scams. Do not respond at all. If you already have, cease all communication immediately.

Please forward all fraudulent lottery emails to our scams@fraudwatchinternational.com email address where their investigative team can work to shut them down.

If you have given personal details:
These fraudsters are after enough information to commit identity theft. They will request information such as personal contact details, address, workplace, and next of kin details. They will also request copies of passports and drivers licenses. When they have all this information, they are then able to commit Identity Theft using all the personal information obtained.

If they only have your email address and telephone number, then you are not at risk. If you have provided a majority of the above information, then you are at risk of becoming a victim of Identity Theft. We recommend you follow instructions in our Identity Theft section of the web site.

If you have lost money:
If you have already given money to these fraudsters for any variety of reasons, unfortunately, there is not much chance of recovery. Once the fraudsters have your cash, even if they are caught and prosecuted, your money is gone.