Lottery scams have been around for some time, and all of the aspects of this version are tested. The latest version of the lottery scam involves a local business having its identity stolen. Then the culprits of this fraud can send you checks drawn on the business’ bank account. This means that this crime has two victims: you and the business whose identity was stolen. This will make you look very bad in the eyes of the bank. Also, the check that you cashed bounces, and the crooks are long gone.

How does this lottery scam work?

You receive official looking documents saying that you have won $500,000 in the British lottery and enclosed is a check for $5,000. There will be directions on how to claim the prize and elsewhere in the letter will be something about how you are required to pay a fee which is what the check is for. All you need to do is cash the check and send the funds in the form of a money order to their offices in the United Kingdom and wait for more instructions.

Sounds like a great deal. You have a check in hand to cover the fees, and there is nothing that could possibly go wrong! Here’s the problem. The check is written on the account of local businesses whose identity was stolen and by the time you have deposited the check and sent the money order to the United Kingdom, the check will bounce, and the bank will hold you responsible for the entire amount of the check. You realize that you have been conned. The names of the countries and businesses may change but the scam is not new. The first red flag that should have risen on your part is that you have been told that you won a lottery you know you never entered. Secondly, it is a lottery in a foreign country. Thirdly, you are asked to pay an advance fee to claim your winnings. It is the fact that you pay a fee that is at the middle of all lottery scams, and the one thing that you should have paid more attention. Yet many innocent people fall for this scam every day. You should never send anything to claim a prize. The only people who “win” money in this scam are the ones to whom you have sent money.

There are lots of consumer fraud schemes out there such as the lottery scam. It is up to you, the consumer, to educate yourself to recognize what is and is not legitimate. By doing so, you can minimize becoming a victim to the crime of theft by deception.

Funny, I don’t remember buying any tickets for a lottery in Ethiopia. In fact I did not even know Ethiopia had a lottery. But it must be true because here was an email from the Comptroller of Finances for the Ethiopian National Lottery. All I had to do was reply with my name, address, and how I wanted my winnings delivered.
This is just one of the ways a lotto con can start.

Lesson One – Email Cons:
The most common lottery con starts by your receiving an email that you have won a large amount of money in a, usually foreign, lottery. You are normally instructed that you should reply to the email with your name, address and how you would like your winnings to be delivered. Most often, you are given two choices; the money can be transferred directly into your bank account or it can be delivered by courier.
If you reply that you want the money wired to your bank account, you will be requested to send them your banks name, your account number, etc. Congratulations, you have now supplied them with enough information to draft all the money out of your account.
If you reply you want the money delivered by a courier, you will get an email back informing you that you need to send the courier delivery service a ‘courier fee’, usually between $300 and a $1000 dollars.
When you get an email telling you that you have won a lottery, ask yourself a few simple questions.
1. How can I win a lottery I did not enter?
FACT: You cannot win a lottery that you do not enter. Lotteries do not pull participants out of the phone book, off email list, or out of thin air.
2. Why is a rich lottery requesting me to reply to a HotMail.Com or a Yahoo.Com email account?
FACT: Free email accounts are a favorite with con artist because it is next to impossible to trace the identity of the owner.
Also be aware that, with $50.00 and a few hours work, a con artist can set up an official looking web site for both the lottery and a courier company.
3. If I won all this money, why are they asking me for money? Can’t they just deduct it from my winnings?
FACT: Legitimate lotteries do not ask that you pay any money ‘upfront’. All fees and taxes assonated with a lottery win are deducted from the winnings.
4. How smart am I if I send total strangers financial information about myself?
FACT: It takes surprising little information for a good con artist to clear out your bank account or credit card.

Lesson 2 – Direct Mailings:
You open an interesting piece of postal mail from the Timbuktu Lottery Commission. In it is a letter saying that you have won millions of dollars in a lottery you never entered. What’s more, the letter contains a bank draft for $3,000.00…. now they have my attention.
A fast read of the letter will inform you that the $3,000.00 bank draft is an advance on your winnings but in order to claim the entire jackpot you have to pay taxes/fees of $2,300.00.
You are instructed to deposit the $3000.00 draft into your account and then send the lottery commission $2300.00 to cover the taxes. Not a problem, you are still $700.00 up… until the $3000.00 draft they sent you is bounced by your bank (and deducted from your balance) because the draft is a forgery.
Again, you need to ask yourself a few questions.
1. How can I win a lottery I did not enter?
FACT: You cannot win a lottery that you do not enter. Lotteries do not pull participants out of the phone book, off email list, or out of thin air.
2. Why do they not simply pulling the taxes/fees from my winnings instead of sending money back and forth?
FACT: Legitimate lotteries do not ask that you pay any money ‘upfront’. Any fees or taxes assonated with lottery win are deducted from the jackpot.
3. Why must I send them money immediately, instead of waiting for their draft to clear?
FACT: Legitimate lotteries allow you a minimum of 90 days to claim your prize. Some Lotteries allow up to a year.

Lesson 3 – In Your Face Scams:
You have just finished shopping at the mall or grocery store when a stranger (con artist #1), usually a Hispanic woman, approaches you. She/he has a problem and could you please help? Being a Good Samaritan you are will to help if you can.
The problem, con artist #1 explains, is that he/she has purchased a winning lottery ticket but cannot cash it because he/she is an illegal alien and has no papers.
A third person (con artist #2) approaches to see if he can be of aid. After hearing the story con artist #2 suggest that if you cash the ticket, you and con artist # 1 could split the winnings.
Con artist # 1 expresses fear that if he/she gives you the ticket, you might keep it all.
Con artist # 2 says he knows an attorney that will draw up a contract but it will cost money and could you (the victim) pay to have the contact drawn up.
The first stop is at the bank where you withdraw the money, anywhere from a thousand dollars to what ever they can talk you into.
The next stop is to an office building where you are ask to wait in the car while the con artist, and your money, disappear into the building to met the attorney.
I can guarantee you that you will never see them again.
There are many variations of what is known as the “Latin Lotto Scam” but they all have three common elements.
1. A person who has a winning lottery ticket
2. The inability of the person to cash the ticket for some reason.
3. You turning over your hard earned savings in the belief you are going to share in the Jackpot.

In Closing:
Always remember three golden rules.
1. If it sounds too good to be true, it probably is.
2. Investigate before you invest.
3. There is a sucker born every minute, don’t be one of them.