Lottery Prize Scams

Some Classic Examples of Lottery Prize Scams

You don’t remember that you entered the De Lotto Netherlands Sweepstakes Lottery or the Australia Lotto Lottery Inc? Or  Spain’s el Gordo Sweepstake (not to be confused with the country’s  official el Gordo Lottery, which has been in existence since 1860)? Or some  pan-European lottery you’ve never heard of like Alpha Lottery International? That’s because they don’t exist. They’re all examples of lottery prize scams.

Lottery prize scams are a global phenomenon.  They are so  widespread that el Gordo’s website warns all visitors not to confuse it with the scam:

elGordo.com would like to inform the general public that a number  of groups of criminals, of various nationalities, are using the  prestige and the commercial names of the Spanish Lottery by fraudulent  means in several countries, particularly in countries in the south-west  of Asia and the Pacific, and countries on the American continent.  They  move with ease around the whole world and use mobile telephones, PO  boxes, provisional or false addresses (including real addresses of  official Spanish organisations), as well as names that bring to mind  prestigious institutions (“el Gordo”, “la Primitiva”, “European Lottery  Commission”, etc.) They also forge the printed sheets and signatures of  various banks.

In order to carry out the fraud, the procedure that is generally  followed consists of informing the potential victim that they have been  the lucky winner of a substantial prize (even if they have not  participated in any draw), although they cannot collect this prize until  they have paid an amount going towards the taxes, bank costs, delivery  costs or insurance processing, etc.  Usually, the fraudster warns their  potential victim that the deadline to pay these charges is very soon and  that their right to collect the prize is about to expire.

How Do Lottery Prize Scammers Find You?

Lottery prize scammers usually contact potential victims by  email, congratulate them on winning and provide them with rather elaborate instructions on how to obtain their money. The emails will  inevitably be sent from anonymous Gmail, Yahoo or Hotmail accounts. Many are based in Amsterdam, where experienced “419” scammers  have set up shop. Others work out of London.

Typical Lottery Prize Scam Scenarios

Most likely, as is the case with many other scams, they will ask you to provide personal details, including a bank account number or credit card number, ostensibly to allow them to pay for the bank transfer and administrative costs.  Instead, they will use that information to impersonate you, commit identity theft and make exorbitant charges to your credit card or withdraw your savings from your bank account, or both.

The scammers may also suggest depositing your prize in a euro bank account that they will open in your name in Amsterdam. To do so,  they’ll tell you that you have to pre-deposit a certain amount of  money.  Of course, there is no bank, no account and no prize. Any money  you send will go straight to the scammers.

Beware So-Called “Release Fees”

In some cases, the scammers invite you to Amsterdam to pick up your  prize in person in exchange for a “release fee, which you will be  expected to pay in cash. They’ll then hand over your winnings, but it  will be in counterfeit currency, while you paid for it with the real  thing.

Traditionally, they will ask you to make payment using a money order, wire transfer, international funds transfer, or pre-loaded cards. In recent years, however, scammers have begun to prefer cryptocurrency, like Bitcoin. That’s because crypto is the most difficult of all payment types to trace. Legitimate lotteries never require you to pay any fee to obtain your winnings.

Publishers Clearing House Sweepstakes Scams

No doubt most Americans are familiar with Publishers Clearing House. It is a veteran direct marketing company with a nationwide mailing list that makes it easy to subscribe to magazines. To induce recipients of its mass mailings to sign up for subscriptions, Publishers Clearing House sponsors a sweepstakes and hands out occasional prizes. Anyone can sign up, whether or not you take out a subscription to one of the  magazines it offers.

But because Publishers Clearing House is so well known, it’s also a magnet for scammers anxious to piggyback on its wide recognition. Some of these scams, for example, will notify you that you won a prize. All you have to do to is pay shipping and handling, insurance, taxes or some other fee before you can pick it up. Others may even send you a check. But before depositing it you have to pay those fees. Either way, the prize doesn’t exist, the money you send them disappears and, of course, you’ll never hear back from them.

If you think you’ve been the victim of a lottery prize scam, contact the fund recovery experts at MyChargeBack.