Lots of people think that any lottery is a scam, but the ones run by your government or with a valid lottery and gambling license are ok. Odds might not be in your favour, though.
The Lottery Scam is when you win a prize out of the blue. You didn’t sign up for it, and you didn’t buy a ticket. You get a call, text message, or email anyway, and guess what? You won the big prize! The prizes are really good too: like gift cards, iPhones, cash, a new car, or even a vacation. But, hang on, there is a catch.
How The Scam Works
You are told you won the lottery, but you didn’t enter it. The prizes range from a $25 gift card to a new car. The catch is that you have to pay a fee to get the prize. That might be in the guise of taxes, processing fees, insurance costs, delivery fees, or legal costs. These fees, you will be told, must be paid up front for you to get your winnings.
They might impersonate real organizations like Canadian Provincial Lottery Corporations, or they might pretend to be from companies like Microsoft or Amazon.
They will ask you for your details for legal purposes, which might include your name, address, phone numbers, driver’s license info, and even your Social Insurance Number and banking details. They will pressure you into paying and providing the information requested. They will use tactics like asking you to act quickly, or they will go to the next person. They might even go as far as showing you very convincing proof of your prize. There have been reports of pictures of the money in a box with a sign being held up with today’s date on it. Anything to get you to hand over your money and the information they want.
Once you give them the information and pay the fee, they are gone. Some variations of this are you pay, and then they come back with another reason to pay, and another, or they need more personal information. Either way, you never hear from them again, but they will clean out your accounts.
Here is an example of what a Lottery Scam email might look like;
Subject: CONGRATULATIONS! YOU ARE A WINNER
Dear Sir/Madam,
You have been selected in the Microsoft International Lottery.
Your winnings: $2,500,000 USD
Please contact our legal department immediately to process your payment.
Kindly provide your full name, address, age, and bank details.
Regards,
Mr. Edward James
Microsoft Claims Agent
Protecting Yourself
- If you are told you are a winner, but didn’t enter any contest, it is probably a scam
- If you are asked to pay a processing fee, or taxes, or anything else to get your winnings, it is a scam
- In Canada, you don’t have to pay taxes on Lottery Winnings
- There is no pressure in a legit lottery to claim your prize
- Lottery officials do not need your bank account information to hand over your prize.
- Don’t click suspicious links or open attachments
- Ignore messages from unknown numbers or email addresses
- Report the scam to the RCMP or your local Police
- Notify the Canadian Anti-Fraud Centre