Iowans warned about lottery scam

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By Todd Dorman | Wednesday, January 17, 2007 1:22 AM CST | () comments

DES MOINES – Iowa Attorney General Tom Miller warned Iowans today to be on the lookout for fake lotteries seeking to steal thousands of dollars from victims who think they’ve won a jackpot.

In many cases, victims are told by mail or e-mail that they’ve won a cash prize and are asked to wire money to pay taxes and handling fees up front. They may also receive a counterfeit cashier’s check for a portion of their “winnings.”

But there is no prize, and victims lose the $2,900 to $4,500 they usually are asked to pay up front. Miller and Iowa Lottery CEO Ed Stanek said today they are receiving numerous complaints from Iowans who have received solicitations.

“You’re lured by expectations of a lot of money,” Miller said at a news conference. “And it’s a nasty scam.”

Miller’s office said a Gilmore City woman recently lost $3,500 she sent in an effort to collect a fake $175,000 jackpot. A West Liberty man also lost $2,900 trying to claim a $50,000 prize.

In some cases, fake lotteries use the logos and trademarked names of legitimate games, including the Iowa Lottery’s Powerball game. Scam artists have even faked lottery officials’ signatures.

Stanek said the tip-off for Iowans is that no legitimate lottery asks for money up front nor would a legal game award prizes to people who did not enter or buy a ticket.

“If you win the Iowa Lottery, you know you’re going to be paid,” Stanek said.

Miller said investigators think most of the fake lotteries are operated from Canada or other locations outside the United States. He said they are difficult to track.

During the next few weeks, the Iowa Lottery will begin an advertising campaign reminding Iowans that it’s the only legal lottery operating in the state.

The lottery also has created a player security page on its Web site at www.ialottery.com.

Todd Dorman can be reached at (515) 243-0138 or at todd.dorman@lee.net.

MORE INFORMATION

The Federal Trade Commission offers information about cross-border fraud, including illegitimate lotteries, at http://www.ftc.gov/bcp/conline/edcams/crossborder/