Attorney General Tom Reilly today advised Massachusetts consumers to avoid solicitations from "lottery clubs" and sweepstakes originating outside Massachusetts. The advisory comes in the wake of a number of recent complaints received by AG Reilly's Elder Hotline about these deceptive and potentially illegal solicitations.

Attorney General Reilly's Office has joined with other states and the U.S. and Canadian governments to investigate these solicitations. According to AG Reilly, however, "these scams are extremely difficult to prosecute because the victims never see the perpetrators, and the perpetrators have usually disappeared before law enforcement is notified. As always, our best defense is an educated, alert public."

Lottery and sweepstake fraud take several forms.

Some involve the sale of memberships in foreign (often Canadian or Australian) lottery clubs that purport to pool together members' chances in lotteries from around the country and around the world. The victim pays money and usually receives a list of numbers. Victims rarely report this as a crime because they simply assume that their numbers did not win. They do not realize that they were never in the game, that the numbers they received are bogus and do not correspond to any purchased tickets.

Other scams are more problematic. One typical scenario is that consumers receive a call from someone claiming to be from a law firm or a government agency. They are told that they have won a large lottery or sweepstakes prize but need to pay taxes up front. If they pay, they receive another phone call a few days later, telling them that another winner refused to pay taxes. As a result, the prize is larger and they need to pay additional taxes. If the consumers pay, they often receive a third phone call, this time from someone claiming to be a border agent. The agent tells them they need to pay a "duty tax" on the money before it can cross the border. They pay and never collect a prize. Occasionally, consumers even receive an official looking check. However, the check is worthless because it is drawn on an account that contains no money.

Many consumers are told to wire money to a specific location. What they often do not realize is that wire services operate on a "will call" system. This means that even if money is earmarked for a specific location, the funds can be picked up anywhere in the world - - making it almost impossible to locate the source of the solicitation.
Attorney General Reilly urges people not to be tricked by confidence games involving sweepstakes and lottery tickets. "If you get a call saying you've won something and you're asked for money or personal information, hang up. If you receive a mailing asking you to join an out of state or foreign lottery, throw it away. And never wire funds to someone you don't know." AG Reilly also asked anyone who has friends or family members who may be vulnerable to these types of solicitations to keep an eye out for mailings and an ear out for phone calls about lottery and sweepstake chances.

AG Reilly stressed that the types of mailings and phone solicitations he is warning against have no connection with the Massachusetts Lottery or with other legitimate state-sanctioned lotteries.