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19/06/2006
OFT warning over 'fake lottery' hoax
The Office of Fair Trading is warning consumers not to respond to a new type of lottery hoax, operating in the UK, which uses counterfeit cheques to try and convince recipients that their promised win is genuine.
The mailing comes from the 'Australian Lottery Corporation' and states that the recipient has won $750,000, but has to pay for taxes and insurance first. The recipient is then asked to contact an agent for more information.
A $4,880 cheque, which is allegedly drawn on a reputable American bank, is made out personally to the recipient and attached to the mailing as part of the alleged winnings to cover the 'necessary payments' the consumer needs to make.
However, the cheque is counterfeit, but it can take up to six weeks to work through the banking system, leaving the consumer potentially liable for any funds they spend while waiting for the cheque to clear.
The address used in the scam is in Victoria, British Columbia in Canada and a North American contact number is also given.
The OFT warned that victims could lose thousands of pounds if they send off money to claim their 'winnings'.
Christine Wade, OFT Director of Consumer Regulation Enforcement said: "Lottery scams have been around for a number of years, but the use of a counterfeit cheque is a worrying development. Scams are becoming increasingly more sophisticated and everyone needs to be on their guard."
The OFT said that there were several warning signs that consumers should be aware of if they receive a mailing or telephone call telling them that they have won an international lottery:
(KMcA)
The mailing comes from the 'Australian Lottery Corporation' and states that the recipient has won $750,000, but has to pay for taxes and insurance first. The recipient is then asked to contact an agent for more information.
A $4,880 cheque, which is allegedly drawn on a reputable American bank, is made out personally to the recipient and attached to the mailing as part of the alleged winnings to cover the 'necessary payments' the consumer needs to make.
However, the cheque is counterfeit, but it can take up to six weeks to work through the banking system, leaving the consumer potentially liable for any funds they spend while waiting for the cheque to clear.
The address used in the scam is in Victoria, British Columbia in Canada and a North American contact number is also given.
The OFT warned that victims could lose thousands of pounds if they send off money to claim their 'winnings'.
Christine Wade, OFT Director of Consumer Regulation Enforcement said: "Lottery scams have been around for a number of years, but the use of a counterfeit cheque is a worrying development. Scams are becoming increasingly more sophisticated and everyone needs to be on their guard."
The OFT said that there were several warning signs that consumers should be aware of if they receive a mailing or telephone call telling them that they have won an international lottery:
- You cannot win a lottery unless you have entered;
- Legitimate lotteries don't ask you to pay taxes, custom fees, insurance shipping or handling or any other fee before receiving your 'winnings';
- You will often be asked to send money upfront to the perpetrators by money transfer.
(KMcA)
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Public to get say in lottery grants
The public are to get more say in where lottery grants are granted under a new pilot voting scheme announced by the government. In the 'Your Pound, Your Choice' trial, the public will be able to tick boxes on voting slips at participating lottery retailers to vote for which local projects should get lottery money.
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The public are to get more say in where lottery grants are granted under a new pilot voting scheme announced by the government. In the 'Your Pound, Your Choice' trial, the public will be able to tick boxes on voting slips at participating lottery retailers to vote for which local projects should get lottery money.
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