Just For You! - Lottery Scams
JUST FOR YOU!
MILLIONS OF DOLLARS TO BE WON IN THE WORLD’S MOST SPECTACULAR LOTTERY!
IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS AND MIGHT BE A LOTTERY SCAM!!!!
Playing the lotteries is an enticing pastime for many. Winning millions of dollars is a dream many find very enticing. Unfortunately, some unscrupulous scammers play on this attraction and shatter these dreams by falsely representing potential winnings and chances of winning.
The sale of lottery tickets raises issues under the illegal gaming and lottery provisions of the Criminal Code of Canada. These provisions make it illegal for individuals or firms to sell lottery tickets without proper authorization. In addition, many of these firms engage in practices which raise issues under the misleading advertising provisions of the Competition Act.
Based on the greatly increasing number of complaints the Competition Bureau has received relating to lottery scammers, these sorts of scams appear to be on the increase. Canadians as well as foreigners have lost millions of dollars in one or more of the following scams described below:
I. The 'You Have Already Won' Scam
Consumers have received mailers telling them that they have won millions of dollars. A close reading of the mailers, however, reveals that all the consumer is entitled to is the opportunity to participate in various national lotteries. The mail pieces often give the impression that consumers can become millionaires by participating in the scheme. The promotion usually involves paying a fee to participate in the scheme. Also, the general impression created by the promotions is that the lottery scammers will purchase thousands of tickets on the consumer’s behalf.
The fine print disclaimers which are often located on the reverse side of one of the pages of the mailer, often state that the consumer will be place in a pool or “syndicate” of up to 500 consumers and that all potential winnings must be shared among all members. Worse, the scammers purchase far less tickets than consumers are led to believe. In fact, usually only 10 to 15% of the consumer’s money is spent on buying lottery tickets. Therefore, consumers will never become millionaires by responding to these offers and will likely only win very small amounts of money, if anything at all.
Also, many of these firms once they have consumers hooked, demand more and more money in order for them to remain eligible for promised winnings. They often fail to pay winnings and entice players to reinvest their winnings with additional cash for the chance to win greater prizes. Finally, there is no way to confirm that tickets have been purchased as promised. The only people “Hitting the Jackpot”, therefore, are the firms running these scams.
2. The 'Phoney Collection Letter' Scam
Another scam is to send to consumers, who had responded to a foreign lottery offer, a demand letter from a phony collection agency, for payment of lottery ticket purchases. These letters threaten legal action if payment is not received immediately. In most cases, the lottery debts were not incurred. The elderly are particularly victimized by this scam.
3. The 'Unauthorized Charges' Scam
Lottery scammers will ask for a consumer’s bank account number or for a void cheque, so that they can deposit winnings into the consumer’s bank account. Consumers should be extremely careful with these requests. Often scammers will use the consumer’s bank account number to withdraw unauthorized sums of money from the account. Scammers may also try to trick consumers into revealing their credit card numbers over the telephone. One trick is to tell a consumer that they have won bonus prizes if certain numbers appear on their credit cards. Once they have the credit card number, they charge unauthorized sums against the account.
4. The 'Winning Numbers Service' Scam
Lottery scammers are always trying to develop new lists of potential victims. One method used is to send out a mailing which invites lottery players to subscribe to a service that has an amazing record of picking winning numbers. They will claim that they have a computer with artificial intelligence or that they have a renowned mathematician on staff. They typically charge a nominal fee of $20 to $30 for their service. In most cases, the numbers sent to customers are merely randomly selected numbers. Once someone has subscribed to their service, they know the person is interested in playing the lotteries and the name will be placed on their mailing lists for other scams. In addition, the lists are sold to other scammers, meaning that the consumer will likely be hit by other scams.
5. The 'Fee for Prize Collection' Scam
Another scam is to mail letters to consumers informing them that they have won a prize in a foreign lottery. The letters state that the firm has been hired by a foreign lottery to distribute unclaimed prizes. Consumers are told that to claim the prize they must pay an administration fee to the firm, usually about $25. Consumers who respond are placed on mailing lists for other scams and do not receive the prize as promised.
6. Associated Sweepstakes or Contests
Many lottery scams entice consumers to respond to their offers by including associated contests or sweepstakes in their mail pieces. Often these associated contests of sweepstakes provide the misleading impression that the consumer has already won a significant prize. The fine print disclaimers, which again are place in difficult to find locations within the mail pieces, state that the consumers chances of winning the significant prize are very remote and that all that the consumer has won is a nominal prize, such as $1.
Tips to Prevent Being Scammed - BE ON YOUR GUARD!
- Don’t assume that you have already won something;
- Make sure that you read all the details about the offer contained in the promotional material very carefully;
- Be careful in sending money up front since recovering losses from lottery scammers will likely prove very difficult, especially in the case of foreign-based scammers;
- Avoid revealing bank account or credit card-related information to a business or person that you don’t know;
- Contact any firm which sends you a demand letter threatening legal action for non-payment of lottery tickets purchases you did not make and ask them to prove the debt. Keep copies of all correspondence;
- Be on your guard! Responding to an offer from a lottery scammers could mean that your name might be added to lists of potential victims which are made available to deceptive and fraudulent marketers.
