Be Wary of Lottery Scams
If it sounds too good to be true …
What should you do if you receive an offer to play a lottery through the mail, e-mail or by phone? Do not respond. Do not send money. Do not give out any personal information or any banking information. It is illegal to play foreign lotteries through the mail or by phone, and the email or phone call is most likely a scam.
If you become aware of a lottery scam or you believe that you are a victim of a lottery scam, suspicious e-mail messages should be forwarded to the Department of Public Safety’s Gambling Enforcement Division at dps.reportfraud@state.mn.us. Consumers can also contact the Attorney General’s Office at (651) 296-3353 or (800) 657-3787 or contact your local police department.
Common Scams & Tactics:
Keep in mind that when a con artist contacts an intended victim, they generally try to instill a sense of urgency by using pressure tactics. They tell their victim that if they do not respond right away, they will forfeit the prize. They also commonly tell their victim that they should not tell anyone about their “good fortune.”
Con artists will often try to collect “taxes” or “handling fees” before paying the prize — unfortunately, victims ultimately learn that no prize is ever paid; no matter how much money they send. A legitimate lottery would never ask you to pay taxes or fees before receiving your prize. If required, state and federal withholding will be deducted from the prize itself.
In order to claim a “prize,” con artists often ask you to provide bank account information, credit card numbers or personal information, like your mother’s maiden name. This information can be used to open accounts in your name (identity theft) or to steal money from existing accounts. Never give banking or personal information to someone unless you are absolutely certain that you are dealing with a legitimate organization and you initiate the transaction. Legitimate lotteries do not require winners to provide banking information to claim a prize.
Often, scams involve counterfeit cashier’s checks. In those scams, the victim receives a “partial payment” check that looks like a legitimate cashier’s check, along with a letter that informs the recipient that they have won a major lottery prize and provides instructions for claiming the prize. However, the check is not legitimate and the recipient hasn’t actually won anything. They are simply the target of con artists. The bank’s real contact phone numbers have been replaced with a number that, when dialed, is answered by one of the scammers, who pretends to be an employee of the bank. The letter states that to claim the prize, the “winner” must first pay “taxes” or “fees.” The letter instructs the recipients to deposit the “check” and then wire a portion of the value of the check to pay those “taxes” or “fees.” The victim deposits the worthless check (their bank may even temporarily credit their account for that amount), sends the requested money and then the phony check bounces.
Another scam entices victims by informing them (often by e-mail) that they are a “big winner” in the Hot Lotto® game. Do not be fooled, Hot Lotto is not played through e-mail, mail or by phone. Currently, 10 lotteries offer the game and the only way to play is to purchase a ticket from an authorized Lottery retailer in one of the lottery jurisdictions where the game is played. Scammers have also used the Powerball® name and logo, the names and logos of other lottery games and sometimes the name and logos of actual or fictional lotteries in similar scams. The “El Gordo” Spanish Lottery is a favorite of scammers.
In another scam, the scammer convinces their victim that they need “help” cashing a winning lottery ticket because they are not a U.S. citizen and fear deportation if they try to cash the ticket themselves. The criminals convince the victim to trade them money for the ticket. The victim is left with a fake lottery ticket.
For more information, or to file a complaint, contact:
Federal Trade Commission: 1-877-FTC-HELP or www.ftc.gov/crossborder
US Postal Inspection Service: 651-293-3200 or www.usps.com/postalinspectors
Minnesota Attorney General: 651-296-3353, 1-800-657-3787 or www.ag.state.mn.us
Canadian/American Partnership (Joint Project to Combat International Fraud): 1-888-495-8501 or info@phonebusters.com
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