Few people can resist a lottery win, especially when there are several zeros at the end. It is not just about greed. The possibilities of buying your dream home and living the good life can make anyone giddy with excitement. Fraudsters understand this well. That is why fake lotteries have become a popular ploy to target innocent victims.
Lottery scams are increasingly prevalent. Understanding how they work and taking defensive measures is the only way to protect yourself against them.
Lottery Scams: How They Work
This type of fraud usually involves an email, phone call, SMS, or some other form of communication announcing that you have won a lottery with a substantial payout. They would then ask you to make a payment to cover processing costs or taxes. Without realizing it is a scam, most victims would pay up in their excitement. Once the transfer goes through, all communications will stop.
This type of scheme is extremely prevalent, so much so that Mega Millions issued an advisory earlier this year to warn against them.
Lottery scams could deploy other techniques, too. In some instances, they may send you a check for the prize money you have won and ask you to pay for processing and taxes. Without waiting for the check to realize, you may go ahead and transfer the requested amount from your own money. The check they send you will, of course, bounce, but it will be too late by the time you find out.
Scammers could also claim to represent a foreign lottery board and ask you to register and buy a ticket. But some scams may not make payment requests at all. Instead, they could attempt to steal personal information, which they could use for other types of fraud.
Whatever the technique they deploy to target you, they will often impersonate well-known lotteries to appear legitimate.
Defending Yourself Against Lottery Fraud
So, what steps can you take to avoid these threats?
Learn how to identify the common red flags
When a fraudster imitates a reputed lottery, knowing whether they are genuine or fake could be tricky. But certain factors could hint a fraud.
Here are a few examples:
- You are contacted by a lottery you did not purchase from.
- It creates a sense of urgency for you to act fast and claim your winnings.
- You are told to immediately pay a fee, often through a wire transfer and sometimes with gift cards or cryptocurrency.
- The person who contacts you asks for personal information. These can include your date of birth, credit card or bank account details, and social security number.
- They ask you to keep your lottery win a secret until you receive the money.
- Emails and messages have several typos and use a generic greeting.
Verify the source
Fraudulent lotteries are convincing in nature and sometimes could be challenging to detect for seasoned lottery buyers as well. So, even if you don’t notice any of the warning signs we have mentioned above, verifying the source of the communication is still important.
If it is a popular lottery, find an official number and contact it to confirm the information you were given. Go to their website and check the winners’ details. If you were asked to call a specific number, check it on PhoneHistory first to see who owns it.
When you are unfamiliar with the lottery in question, you should research it further. Don’t just rely on its website. Remember, criminals could easily set up a fake website to mislead victims. So, reading reviews and digging deeper is essential to confirm the lottery’s authenticity.
Be wary of links
Sometimes, emails, SMSs, and social media messages can contain links for you to click and find more information, enter personal details, or for some other purpose.
But there are several dangers involving unverified links; They can download malware that tracks and steals personal data from your devices. Or, they could take you to malicious sites to collect confidential information. So, avoid clicking on links until you confirm the legitimacy of the communication received.
Ignore payment requests
Genuine lotteries will never ask for upfront payments for processing or admin. They also will not ask you to pay taxes. A 24% tax is typically withheld from your winnings before the payout.
So, view any payment request with suspicion, especially when it involves a wire transfer or other untraceable method.
Keep your private data private
When someone contacts you to offer prize money, you could be more inclined to provide information you would never otherwise share. For instance, you may willingly give your full name, address, bank, or tax ID details, thinking the lottery will post a check, transfer your winnings to your checking account, or deduct taxes.
This creates an opportunity for scammers to target victims for identity theft. Using your identifiable information, fraudsters can commit a series of crimes, from tax scams to financial fraud. They may even target your loved ones for various fraudulent activities.
Therefore, keeping your data private is an essential practice to avoid scams. Never disclose confidential information without validating the source of the request. Your sharing practices on social media could also leave behind clues for criminals to pursue. So, think twice before you post.
Protecting your accounts and devices is another measure to take. This is particularly important to guard against malware threats launched by lottery scams.
