Don’t pay to win warns Citizens Advice
28th February 2006
Problem-solving charity Citizens Advice is alerting people to be wary of lottery scams, which inform people they have won, then trick them into paying money for prizes they will never receive.
The words of caution come as the Office of Fair Trading continues its Scams Awareness Month to alert the public to deceptive and fraudulent mass-marketed scams
Citizens Advice is concerned because increasing numbers of people are falling victim to lottery scams, which involve paying money upfront in order to receive a prize. However, once the cash has been paid, the prize never materialises and the 'winners' find themselves out of pocket.
Scamsters contact people through mailshots, faxes and cold calling by phone to explain that their 'lucky numbers' have come up and they have won an exclusive prize or exotic holiday. Many people are so excited about their win that they respond by giving their bank details to claim what they have been led to believe is theirs. But the prizes do not exist, people are conned out of their money, and are left feeling vulnerable and all too often in a difficult financial position.
In one case a CAB client from Suffolk received a letter from a lottery in Spain saying he had won 615,810 Euros. In order to receive the prize money he was asked to send £9,000. After receiving the £9,000, the lottery company rang the man and asked if he could send a further £27,000 to cover the cost of certificates for money laundering and anti-terrorism payments. In order to come up with the cash he had borrowed £9,000 from friends. He is now in debt and has never received his cash prize.
In another case reported by a Citizens Advice Bureau in Essex a woman was informed over the telephone that she had won a holiday. She gave her credit card details to secure the win. She later found that £575 had been taken from her account. She tried to ring the company but just got a recorded voice message.
A CAB client from Hampshire received a letter from a European lottery telling her that she had won 667,975 Euros. She was then asked to send two payments of £606 and then £897 to receive her prize money. She sent off the payments but has never received the prize. The woman is unemployed with two dependent children and could not afford to lose the money.
Citizens Advice Consumer Affairs Social Policy Officer Susan Marks said:
"People should be very wary of lottery scams. Remember, if something sounds too good to be true, then it probably is. The crucial fact is that you cannot win a competition you have not entered. So, if you are contacted and told that you have won a prize for a competition you have not taken part in, alarm bells should ring. Avoid responding at all costs, do not send any money up front and do not get tricked into sending your bank details. These scamsters are trained to groom the unsuspecting public, when they ask for money to free up the prize it can sound plausible - even though it is a con. Genuine lotteries never ask for payments from winners.
"Remember these scams are very common and an easy trap to fall into. Once you have been duped into giving your cash to these rip-off merchants there is very little you can do to get your money back. If you think you have fallen for a lottery scam get in touch with your bank - it may not be too late to stop the transaction if you act fast. If you do find you have been caught out, try and help others by reporting it to Scambusters at The Office of Fair Trading by emailing scams@oft.gsi.gov.uk. Get your own back and get them on the scams list.
"In order to avoid being targeted by these scamsters you can register with the telephone, fax and mail preference services. This will ensure that your details are no longer available to organisations, including charities and voluntary organisations, who may contact you with unsolicited offers and information you do not wish to receive. Contact tpsonline, mpsonline, and fpsonline to register. Then, if you are contacted, you know it isn't a reputable business."
Last updated: February 22, 2007