The Latest Scams Circulating the Consumer World. Be warned. Be informed.

January 2006

Foreign Lottery Scams

Are you dreaming about winning the lottery? The holiday season has come to a close, and many of us are left with sweet memories and large credit card bills.

Be on the lookout for foreign lotteries that promise huge winnings. This is the time of year when people are particularly vulnerable to quick debt solutions and the desire and thrill of winning the lottery is an easy scam to fall for.

An 86-year-old woman gave more than $88,000 to a foreign lottery scam. She never recovered her money, and the crooks were never caught. Don't let this happen to you or someone you love.

The scam claims that you are a major winner in a foreign lottery. However, in order to claim your lottery winnings -- often millions of dollars and always cash -- you must first remit a contest fee to cover processing and taxes. While it's likely that you simply don't remember entering this foreign lottery, it's MORE likely that it is a scam.

The most popular foreign lottery scams are from the United Kingdom, Holland, Spain, Germany, and Australia. In the Australian scam, victims received a letter proclaiming them the winner of a $50,000 jackpot. They were told that they would receive a check to cover the taxes and/or fees, as well as additional instructions on how to collect their prize. The next day, they did indeed receive an overnight letter with a check for $2,650. The letter claimed that the check was issued in line with federal law that requires lottery winners to pay taxes and processing fees on their winnings. Winners were advised to use the deposit the check and use the money to write their own personal check for the tax/fee payment. Before the bank could figure out that the checks were bogus, the victims' real checks had been cashed and they never received their windfall check.

Not only is playing a foreign a losing proposition, it is also illegal. A federal statute prohibits mailing lottery tickets, advertisements, or payments to purchase tickets in a foreign lottery.

• Don't give out personal or financial information to anyone over the Internet or phone who says they need this information in order for you to collect and pay taxes on your winnings.
• Don't believe that the real check from a lottery foundation makes the organization credible. It will look and feel real, but it is NOT real.
• Don't send ANY AMOUNTbig or small to claim your earnings. A legitimate lottery will not require you to pay fees.

Remember you can't win a prize in a lottery if you didn't buy a lottery ticket!