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Lottery Scams Turn to Text Messaging

January 13, 2006
Lottery scams are nothing new, but one method of delivering them is -- text messaging. It's becoming very common in Asia, though there are few reports of it so far in the U.S.

The lottery scam, of course, is very simple. The scammer tells the victim they have won a lot of money but, to collect it, they have to send a small amount of money, either for processing or to pay taxes. The amount is anywhere from $300 to $2,500, depending on the means of the victim.

In North America scammers use telemarketing or direct mail to target victims. But text messaging is cheaper, and has the added benefit of narrowing the scammer's field to younger, more vulnerable people who tend to have cell phones and favor text messaging.

Authorities in Taiwan report cell phone users are receiving text messages from something called the GMA Foundation of the Philippines, telling them they have won $2 million in an electronic raffle drawing.

The victim is instructed to call a telephone number for instructions. If they do, they are told to wire $2,000 to a special account to cover a processing fee. Victims have told authorities they are also instructed not to discuss the transaction with anyone.

Authorities say it's not surprising the text-delivered scam originated in areas where cell phones are now more common than landline phones. Given the growth of wireless communications in the U.S. and the economy of sending text messages, it's likely text-delivered scams will soon become common here too.

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