Under Title 18, Part 1, Chapter 95, Section 1953-Interstate transportation of wagering paraphernalia, it is illegal for US Citizens to enter foreign lotteries.  The US government has established this anti-racketeering law in order to protect its citizens from scams. Though, there are actual foreign lotteries (i.e.: the Irish Sweepstakes), participation in a foreign lottery is outside of US law. Some of these scams request payment of “fees” or taxes in order to receive the remaining “winnings.” We recommend that you DO NOT DEPOSIT or CASH these checks, money orders or traveler’s checks. If the sources are from a foreign lottery offer or unknown foreign source, which is not solicited, it probably is a scam. The usual ploy used by scam artist is to send the “winner” a check, which looks legitimate, with instructions to send back part of the amount of the check for the fees or taxes in order to receive the remaining balance; however, these checks are usually counterfeit. The responsibility for the transaction involving a check is completely the victim’s. After the financial loss is detected, victims often inquire why their bank is not responsible for the fraudulent check. The reality is: it is the responsibility of the bank customer or presenter of the check to insure the validity of the check. Your endorsement on the check is not only to document your identification; it is your assurance to the business who you are presenting the check to that you are confident that the check is legitimate. Always know the source of your checks before depositing them into your account or cashing them. Be cognitive of terms like “confidential,” “for your eyes only” and similar phrases on correspondence. These are indicators of a criminal attempt to prevent being detected. And, remember, it is illegal to participate in foreign lotteries.

Other frequently used scams are business offers from the internet or from foreign businesses. Usually, the most widespread scam involves the offer to help a foreign business with money exchange or payroll. This usually results in a financial document being sent for a return of US currency via an overnight or instant service. Some scams involve the repackaging and shipment oversees, items purchased via stolen credit card accounts. These and other scams are presented as “work at home” employment deals, which might even be advertised by a flyer stapled to a telephone pole. Some of these “work at home” scams pay commissions for facilitating money transfers through the victim’s account. Another scam involves letters from foreign lawyers or even government offices informing you of an inheritance of a distant relative. These usually result in a financial document being sent to the “heir” with a request for payment of “fees” or taxes. These are scams. The money order, traveler’s check or draft received by the victim is counterfeit. The withdrawn funds which are sent to the con artist become the victim’s responsibility and loss.

Some scam artist use internet purchases/offers to steal money from victims. Never provide rebates or cash back from purchasers, who send more than the agreed price. In almost all instances, these checks or drafts are counterfeit documents. Likewise, never cash or deposit “mystery checks” for items you did not sell. Be very cautious in dealing with contacts soliciting a “second chance deal” on an item on the internet. Always remember: caveat Emptor or “let the buyer beware” when dealing with internet site purchases.  

Another recurring scam is the “fake bank comptroller” scam, which has remerged via the internet. These scams come in various forms but are not limited to what appears to be communication notices from credit card companies, banks or even merchants. Some of these notices from the internet may be marked as “urgent” with a claim that the account has been compromised and inaction will result in its closure. Whether by phone, mail or the internet, the suspect will ask for your PIN or social security number in order to correct this problem. The rule of thumb is to remember, whether the contact is made by phone or internet, if you truly are communicating with a financial institution or merchant, they already have the necessary information and would not need to request any confidential information (i.e.: PIN or your social security number). It is suggested that if you encounter such a contact, physically go to your bank. Do not provide any personal information by phone or the internet. Use care at ATM machines. Do not provide your PIN to anyone even if they appear to be from the bank and a problem occurs with the return of your card from the ATM machine. Additionally, it is suggested that you use care when providing personal information including PINs while using cordless or cellular phones. Scanners and devices exists which aid in the dissemination of phonic codes from a phone keypad.

In some instances, scam artist make face-to-face contact with their victims. In the event, someone approaches you about finding or possessing a winning lottery ticket or a foreign check or some “way-to-good-to-be-true deal,” we suggest that you avoid them. These contacts are usually set-ups for a “pigeon drop” scam. The suspects draw the victim in with the potential of being a partial winner of a lottery ticket or with the “bait” of making some quick cash. Several suspects can be involved with the “bait and switch.” The victim usually ends up with a “switch”, consisting of cut-up paper in an envelope, handkerchief or even a wallet. Usually, the victim foolishly places themselves in a dangerous situation by driving the suspects to banks or ATMs. And, if at anytime the scam goes wrong, they could become a hostage or a potential violent crime victim.

The US Postal Service has stated that most, if not all, foreign lotteries and unsolicited offers sent to US addresses through the mail are bogus. Most of these don’t come from foreign government agencies or licensees. Instead, these offers originate from con artists who take your money and give nothing back. Remember above all, if something sounds TOO good to be true, it usually is.

Larry Brooks, Detective II
Investigative Services Bureau
Detective Division