Fresh warning on lottery frauds

City of London Police is backing a new warning issued this week by the Office of Fair Trading (Dec 2) advising the public to beware of lottery frauds.

With a promise of cash winnings and visions of a millionaire lifestyle, receiving a letter, email or telephone call about a supposed lottery win can seem like a dream come true.  But for many, it can be the start of a nightmare, leaving people out of pocket or at risk of identity theft.

• One in three people (32 per cent) have received a fake lottery win notification, research shows.
• Lottery scams cost the British public an estimated £260 million a year
• Approximately 140,000 adults fall victim to these scams a year
• However only six per cent of victims report it to authorities such as the police or trading standards
• So far this year, the OFT-managed consumer advice service Consumer Direct received 4000 complaints about lottery scam
• Average loss is £1,900 per victim per year
  Often masquerading as legitimate lottery operators such as the Spanish El Gordo or our own National Lottery, people receive information about their win out of the blue, telling them that they have won a major cash prize in a lottery or sweepstake.

The crime unfolds as the company asks for ‘administration fees’ to handle the win, or for the ‘winner’ to send personal details to confirm their identity to receive the prize.  The winnings do not exist and are never received.

As part of the campaign, organisations across the UK such as Help The Aged and Co-operative Financial Services are helping to alert the public to these criminals. The OFT is also targeting 425,000 more likely to fall for such frauds, offering tips and advice on how to spot a bogus lottery notification.

For more advice on how to avoid falling victim to a lottery fraud visit www.consumerdirect.gov.uk/lotteryscams