Sweepstakes and Lottery Scams

The letter says the recipient has won $35,000 in an international promotion program. It indicates that a check will be mailed to the winner from a North American Payment Center upon payment of a "release fee" and applicable taxes.

A contact name and phone number is provided to assist with verification, processing and payment.

"Phone numbers often go back to people involved with the scam, and they will indicate that your winning notification is legitimate," the company said in a fraud alert posted on its Website.

Atlantic Lottery says that to win any of its cash prizes, you must have purchased a ticket from an authorized retailer in New Brunswick, Nova Scotia, Prince Edward Island or Newfoundland and Labrador, or on their PlaySphere website. The company said it is not authorized to operate lotteries or games of chance outside of Canada.

December 1, 2003
The Federal Trade Commission is urging consumers to beware of a foreign lottery scam that adopts the name of Spains largest lottery prize, El Gordo, to con consumers out of substantial sums of money.

According to the Spanish government, consumers in the United States may receive phony letters, as well as forged materials purporting to be from Spanish banks, that claim that these consumers have been the lucky winners of a large cash prize. To claim the prize, the consumer is told he or she must pay a sum that goes toward the taxes, bank costs, and processing fees necessary to deliver the prize money.

The real drawing for the El Gordo prize takes place during the holiday season. The Spanish government indicates that the fraudsters who carry out the phony drawing use the actual addresses of official Spanish organizations to make their scam appear legitimate.

If you receive a letter this holiday season claiming you have won a big prize in a foreign lottery, do not pay any money it is a scam. The FTC reminds U.S. consumers that participating in a foreign lottery is illegal.

Points to remember:

• If you play a foreign lottery through the mail or over the telephone youre violating federal law.
• There are no secret systems for winning foreign lotteries. Your chances of winning more than the cost of your tickets are slim to none.
• If you purchase one foreign lottery ticket, expect many more bogus offers for lottery or investment opportunities. Your name will be placed on sucker lists that fraudulent telemarketers buy and sell.
• Keep your credit card and bank account numbers to yourself. Scam artists often ask for them during an unsolicited sales pitch.

The FTC encourages consumers to give any suspicious lottery material from a foreign country to a local postmaster. You can also report it to the FTC at www.ftc.gov or 1-877-FTC-HELP, or contact your state Attorney General.