Scam alert for smaller lottery retailers
By Kate Northrop
Police are investigating credit card fraud in which scammers use stolen credit cards and credit card numbers to buy thousands of dollars' worth of lottery tickets in Michigan.
Investigators identified suspects believed to have participated in a fraud ring that buys lottery tickets using stolen credit cards.
Michigan police and detectives are currently investigating credit card and lottery scams occurring in Montcalm County. Over the past two weeks, the Montcalm County Sheriff's Office received numerous complaints of frauds and attempted frauds at multiple convenience stores.
Scammers have been visiting these lottery retailers to buy thousands of dollars' worth of scratch-off tickets using stolen credit cards and credit card numbers. They will usually target smaller convenience stores near closing time, county police said.
If the initial transaction is declined, the fraudster will pull up credit card numbers stored on their phones and provide them to the cashier to enter manually. While most transactions are denied, there are still some that have gone through, including one completed transaction for $8,000.
There have been "up to a dozen different numbers" attempted during transactions, according to the Sheriff's Office.
While nobody has been publicly named as a suspect yet, police have identified two different groups operating in the county, including three suspects from Akron, Ohio. Investigators have confiscated evidence and are in the process of analyzing it.
Police recommended that convenience store personnel positively identify, via a driver's license or State ID card, anyone attempting to make a large dollar amount purchase with credit cards. Customers asking cashiers to manually enter credit card numbers is also a red flag — staff should only use numbers presented on a credit card for large purchases.
The Sheriff's Office urged any convenience stores that have witnessed these types of transactions to contact the Sheriff's Office detective bureau.
Here in Arizona I have only ever been able to use a debit card for the lottery and only at the self serve kiosk. Only cash at the register. Credit cards don't work for this very reason.
Yes, exactly what I was thinking, don't most states only allow debit and credit card use at the lottery kiosk and not the counter clerk. It is very strange to know that Michigan stores allows that. I am sure going forward, they will now change their policy. Spending 8K in lottery tickets sound like the scammers where buying entire packs of scratch offs, most likely the $30 ones. The problem with that is, even though one buys entire packs of tickets there is no guarantee there with be a $4 million jackpot prize in the pack. I have watched enough Youtube video where people buy entire packs of tickets and not have the jackpot prize in the pack. They either loose money or break even. I watched Mr. Beast Youtube video where he purchased 1 million dollars worth of lottery scratch offs and STILL did not win the jackpot prize.
In Louisiana, the law is cash or debit cards, but it isn't always followed.
In Louisiana, the law is cash or debit cards, but it isn't always followed.
If the crooks try to claim a prize > $600, they are going straight to jail.
The credit card company will do a reverse charge to the store if the credit card holder verifies the fraudulent purchase. Store will take the loss.