CONSUMER ALERT: Don’t Fall for Lottery Scams

Governor David A. Paterson today joined with State Consumer Protection Board (CPB) Chairperson and Executive Director Mindy A. Bockstein and New York Lottery Director Gordon Medenica in alerting New Yorkers to an increase in lottery scams. The State is warning consumers to be on the lookout for bogus lottery offers making the rounds during the current economic crisis. Lottery scammers use the telephone, faxes, e-mail, and cell phone (mobile) text messages to connect with potential victims, and include persuasive messages to lure victims into responding and divulging personal information.

In order to protect consumers, the CPB and Lottery have teamed up to produce audio and video public service announcements (PSAs) in English and Spanish. The PSAs, featuring Lottery personality Yolanda Vega, are being issued to raise awareness among consumers of diverse backgrounds, and will be distributed to radio and television stations statewide starting next week.

“As consumers struggle with hard times caused by the economic downturn, they may be even more tempted to respond to false announcements they receive informing them that they have won a lottery,” said Governor David A. Paterson. “Our advice to those who receive notices that they’ve won a lottery they didn’t enter is clear and simple: Don’t respond!”

According to the Federal Trade Commission (FTC), scam operators are using the telephone, direct mail and e-mail to entice U.S. consumers to buy chances in high-stakes foreign lotteries. These lottery solicitations violate U.S. law, which prohibits the cross-border sale or purchase of lottery tickets by phone or mail. Lottery offer complaints were on the FTC’s list of Top Complaints for 2008. Further, the U.S. Postal Inspection Service estimates that consumers spend about $120 million a year in responding to foreign lottery mailings.

“Scammers prey on consumers looking for easy money or those who may not fully understand the offers sent to them,” said CPB Chairperson and Executive Director Bockstein. “Lottery scams are very popular with con artists trying to exploit tough economic times to rip off consumers. Therefore, it is important for consumers to understand how to avoid being duped. The best defense is a good offense. Thus, we are educating consumers about illegitimate lottery approaches and other scams. Disregard these bogus offers, but if you’ve already responded, the CPB may be able to help you deal with the resulting increased possibility of identity theft.”

Lottery Director Medenica said, “The New York Lottery applauds the Consumer Protection Board for its efforts to raise awareness about lottery scams. During these difficult fiscal times, it is especially important for New Yorkers to remain vigilant about scams seeking money and personal information for entry into a Lottery. Here at the NY Lottery, we strongly encourage all of our players to sign their tickets as soon as they receive them to ensure that only they can claim their prizes.”

The ads, which can be viewed or heard on the Consumer Protection Board’s website at www.nysconsumer.gov, provide the following safety tips for consumers:

Don’t respond to an e-mail or advertisement seeking personal information like bank account or Social Security numbers.
Never pay any upfront fee to claim lottery winnings.
Disregard lottery prize notifications sent by bulk mail, even if it’s addressed to you. They’re fake.
Don’t enter international lotteries from within the US. It is against federal law.
Ignore notices claiming you won a prize for a lottery for which you haven’t bought or been given a ticket.

Additional resources are available on the CPB website at www.nysconsumer.gov. Consumers are encouraged to immediately report unscrupulous activities to the CPB using the online Consumer Complaint Form found at http://www.nysconsumer.gov/complaint.htm. Consumers without access to the Internet may call the CPB’s toll-free hotline at 1-800-697-1220.

The CPB, established in 1970 by the New York State Legislature, is the State’s top consumer watchdog and think tank. The CPB’s core mission is to protect New Yorkers by publicizing unscrupulous and questionable business practices and product recalls; conducting investigations and hearings; enforcing the “Do Not Call” law; researching issues; developing legislation; creating consumer education programs and materials; responding to individual marketplace complaints by securing voluntary agreements; and, representing the interests of consumers before the Public Service Commission and other State and federal agencies.

To file a consumer complaint with the NYS Consumer Protection Board (CPB), call our toll-free hotline at 800-697-1220 or visit CPB’s website at www.nysconsumer.gov. In addition to the online complaint form, the website is home to important consumer safety information.