Lottery Scams Emerge as Major Internet Fraud
FraudWatch International warns Internet consumers of the escalation of
Lottery scams circulating via email. These scams involve advance fee fraud,
typically seen in Nigerian 419 scams, and acts as a method to gather
personal information used for identity theft. Lottery scam emails are
increasing at an alarming rate. In April FraudWatch International received
over 1000 variations, double the number of 'phishing' email scams received.
Melbourne, Australia (PRWEB) May 3 2004 -- FraudWatch International warns
Internet consumers of the escalation of Lottery scams circulating via email.
These scams involve advance fee fraud, typically seen in Nigerian 419 scams,
and acts as a method to gather personal information used for identity theft.
Lottery scam emails are increasing at an alarming rate. In April FraudWatch
International received over 1000 variations, double the number of 'phishing'
email scams received. "Consumers are paying big dollars to have their bogus
winnings released to them. If it wasn't working, the number of emails wouldn
't be increasing," says Managing Director Trent Youl. "Victims are
contacting us every day asking for assistance to recover their lost money.
The bottom line is, once the fraudsters have it, recovery is unlikely."
Grace is a victim. She received an email from OY Keikkaus Lottery notifying
her that her email address had won US$2.5 Million. Grace says, "I was really
excited then without considering the fact that I never joined any sweepstake
lottery. I paid them US$2,000 for taxes and insurance and upon receiving
that amount they told me that it's not enough and advised me to borrow money
from friends or mortgage our property. I actually followed whatever they
said. I kept borrowing money to pay them until my brother pointed out typing
errors in their correspondence. I searched the Internet and found FraudWatch
International's website and that's how I found out this was a lottery scam.
I burst into tears when I found out because my effort and money had been
wasted. I hope this will serve as a lesson to others."
Grace's story is typical of the comments FraudWatch International receives
from consumers who have lost money to these scams.
It begins with an email claiming the recipient has won a lottery. They are
to contact a claims agent to collect their winnings, usually at a free email
address. The unsuspecting consumer contacts the claims agent who sends a
claim form to verify their identity. They must return the form with their
personal details along with copies of their passport and driver's license to
"verify their true identity." This is where the scam begins. The fraudsters
now have enough information to duplicate the consumer's identity.
The responding consumer receives an email with three options of how to
collect their winnings. They can have the money wired to their bank account,
they can open an account with a specified bank (bogus), or they can pick up
their winnings personally (normally from Amsterdam).
Most people want their winnings transferred into their bank account. This
involves upfront fees for taxes, insurance or even legal fees. Victims
transfer money as requested via Western Union. If they do not want to pay
upfront fees, they can open an online account with a specified bank, who's
'policy' requires a deposit of around US$3,000. This bank is fake.
Alternatively, victims are able to pick up their money personally by
travelling to Amsterdam, where they are required to pay a release fee in
cash, and receive their winnings in counterfeit currency.
Trent Youl believes that "because recovery of money is unlikely, education
is the best defence in protecting consumers from these kinds of scams."
FraudWatch International is committed to educating consumers on Internet
Fraud and scams used to collect information for Identity Theft such as
'Phishing', Nigerian 419 and Lottery scams. The website contains a list of
over 400 known lottery scam operatives with many example emails, and a list
of 100 fake bank websites used in these scams. These can be found at
http://www.fraudwatchinternational.com.