BBB ISSUES INTERNATIONAL ALERT: CROSS-BORDER LOTTERY SCAMS SURGING; COMPANY NAMES USED FRAUDEULENTLY ON COUNTERFIET CHECKS

By Elaine Smith
Uppercumberland BBB
December 07, 2005

The Better Business Bureau system today issed an alert cautioning consumers and businesses about a surge infraudulent cross-border lottery notifications that involve fraudulent counterfiet checks.

Consumers across the country are contacting Better Business Bureau in the U. S. and Canada to ask about the legitimacy of notices they received by mail and spam e-mail announcing that they hae won substantial sums of money in a Canadian or other foreign lottery. Consumers were given a telephone number to call and then instructed to cash certified checks in amounts ranging from $2,000 to $9,000 in order to collect their "entire award package". They were then instructed to wire the money or send their own check back to the lottery company to cover fees or taxes. The names and bank account numbers of reputable and valid U. S. businesses appear on the certified checks. The companies have advised the BBB that they are victims of identity thief and that their names and account numbers are being used fraudulently in the lottery promotions.

The BBB in Huntsville, Alabama recently issued an alert regarding DE-LOTTE TRUST GROUP, INC. of Toronto, Canada for the DE-LOTTE AUSTRALIAN SWEEPSTAKES. The Bureau recieved inquires from consumers in Alabama, Arizona, California, Georgia, and Ohio regarding this "sweepstakes". The notification letters state that the recipient is one of the declared winners of a drawing. A check in varying amounts ranging from $3,500 to $8,950 and made payable to the recipient from an account for Apel Machine and Supply of Cullman, Alabama was enclosed with the notification letter. Consumers who contacted the BBB reported that they were instructed by DE-LOTTE TRUST GROUP, INC. representatives to cash the check and wire funds back to DE-LOTTE and pay the government taxes for the winnings. The Bureau reported that some consumers did cash the check, but were notified later by their bank that the check was counterfeit and they were liable for the funds they withdrew. The Bureau has confirmed that Apel Machine and Supply, a distributor of mill and plumbing supplies, had no connection to DE-LOTTE TRUST GROUP, INC. or any lottery-related company.

The BBB in Boise, Idaho has received inquiries from consumers regarding Camden Marketing, Inc. out of Cooksville, Ontario, Canda. The company is telling consumers that they are the winner of a lottery worth thousands of dollars. The check enclosed with their notification letter displays the address of a major corporation located in Boise and appeared to be a legitimate check according to the Bureau.

The BBB in Dallas, Texas reports receiving inquiries from consumers in Floriday and Georgia regarding International Lottery Incorporated, located in Brampton Ontario and a Golden Investment Trust out of Concord, Ontario. The Bureau recieved two checks from the supposed "Lottery winners". The name of Michael Stores, an arts and craft store chain based in Dallas, was misued on the conterfeir checks. Both of these consumers recognized the scam and did not deposit the checks.

While most of these Lottery notifications letters deservedly end up in the trash, there appears to be an increase in the number of people who are taking them seriously. People need to realize the danger in responding to unofficial lottery-related solicitations. If they cash the counterfeit checks, they can end up liable for any funds they spend while waiting for any funds to clear. Even if no money is transferred to these organizations simply providing an ID or bank account details to an unknow party makes consumers vulnerable to identity theft and fraudulent use of their bank account.

The BBB cautions consumers not to allow enticing dollar signs to abstruct common sense. If you are being directed to wire money, send a check, provide access to your bank account or credit card numbers or forward personal financial information i order to claim your winnings, contact your BBB. This is an attempt to steal your money or identity, by a person masquerading as a lottery official.

If you have won a legitimate, legal lottery, you do not have to pay taxes, custom fees, shipping or handling or any other fee before receiving your winnings. In addition it is illegal to participate in a foreign lottery through the U. S. mail.

Business - large and small - should take every precaution to make sure their company data is protected. Identity theft can be committed by a dishonest employee, through careless disposal of vital information or unprotected computers.

"Lottery winners" and businesses who believe their banking account data is being misused in a cross-border lottery scheme should report the incident to PhoneBusters at 888-495-8501 or send information to :Phonebusters, box 686, North Bay, Ontario p1B 8J8. Phonebusters, run by Royal Canadian Mounted Police and Ontario Provincial Police, provides a central complaint database for law enforcement. They also liaise with the U. S. Postal Service, the FBI, U. S. Customs, Federal Trade commission and state attorneys general offices.

Call BBB at 931-520-0008 or visit web site www.gobbb.org.

Elaine Smith
18 N Jefferson Ave
Cookeville, Tn. 38501