Canadian Lottery Scam Resurfaces

Victims get phony check, lose real money

November 27, 2007    Spanish

Lottery/Sweepstakes Scams • Fraudsters Masquerading as Well Known Companies • Yahoo! Sues Fake Lottery Scammers • Canadian Lottery Scam Resurfaces • Consumers Continue To Fall For Phony Lottery Scam • Postal Inspectors Seize Billions in Fake Checks • Lottery Scam Victim: "No One Cares" • Consumers Falling For Lottery Scams In Increasing Numbers • FTC: Older Americans Hit Hard by Consumer fraud, ID Theft • Florida Warns of Pay-to-Claim Sweepstakes Scams • Texas Sues Sweepstakes Operator • Iowa Busts Sweepstakes Scheme • Crackdowns in 9 states • Feds seek court order • Feds sue Australian scam operators • American Home Products • Reader's Digest Pays $6 Million to Settle Sweepstakes Complaints --- • Atlantic Lottery • Australian Lottery • European International Lotto • How to spot a scam

The fake lottery scam is making the rounds again, trying to lure consumers at holiday time with promises of more than $200,000 in winnings.

The scammers claim to represent Canadian-based Atlantic Lottery Company, a legitimate company that is warning Americans not to fall for the ruse.

“To be eligible for a lottery monetary prize from Atlantic Lottery, you must have purchased a ticket from an authorized retailer in New Brunswick, Nova Scotia, Prince Edward Island or Newfoundland & Labrador, or on our PlaySphere website,” the company said in a statement.

ConsumerAffairs.com has received nearly a dozen complaints about this particular lottery scam from readers in the last month. They all describe similar circumstances.

“I received a letter and an official check for $4,985 from Chase Bank. It has the watermark and looks real,” Lisa, from Somerset, Ky., told ConsumerAffairs.com. “The letter stated I had won a promotional sweepstakes lottery from Atlantic Lottery Corporation held on May 30th, 2007. It has a claim number and says that I have won $262,000.00.”

Lisa was told that her name was selected through a random computer ballot system. There was a check for nearly $5,000, which she was told had been deducted from her winnings, and which she should use to pay taxes. She was instructed to wire $3,985 via MoneyGram at Wal-Mart, and not cash the check until after speaking with “Cindy Hughes,” at Atlantic Lottery.

Rick, of Phoenix, got an identical check for $4,985 with instructions to wire $3,985 to pay taxes. Unfortunately, he did.

“Cindy Hayes said the rest of the money would be sent to me by Federal Express,” Rick told ConsumerAffairs.com. “When I called her back she said Customs was holding my money.”

The $4,985 check Rick deposited in his bank account was fake. The money he wired to the scammer was real. Once the bank discovers the check is a counterfeit, the deposit will be deleted and the $3,985 will be deducted from his account. If there was not $3,985 in his account at the time, he will have to get the money and pay back the bank.

Unfortunately for Rick and other victims of this scam, U.S. authorities have, in the past, shown little interest in pursing the perpetrators running Canadian scams. Victims’ best hope is to contact PhoneBusters, a Canadian organization that investigates these crimes. Their toll-free number is 888-495-8501.

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