California Lottery Consumer Scam Alert.

News Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Sept. 5, 2003

The California Lottery today warned Californians of two nationwide scams regarding Lottery tickets.

The first scam targets the Latino community. Con artists generally approach unsuspecting individuals in large public areas with what may appear to be a winning lottery ticket. Most of the time these tickets have been altered or purchased after the actual drawing. Usually, these con artists claim to be California Lottery winners who are unable to collect their prize, they say, because of immigration issues and ask the victim to claim it for them. A second con artist acting like an unsuspecting witness comes upon the scene and asks if they can also assist. However, as a sign of "good faith" the first person asks the victim for a "security deposit." These "security deposits" are generally large sums of money used as "proof" that the victim will return the prize money to the con artist after they claim it. Once the money has been taken from the victim, the con artists disappear, leaving the victim empty handed with a worthless lottery ticket.

The second scam, dubbed the "Canadian Lottery" scam, is a telephone solicitation one that targets elderly victims. It starts with a victim receiving a phone call from a con artist claiming to be a lottery organization. The con artist claims that the victim has won a large prize in a fictitious lottery but that the victim has to pay taxes before they can receive their prize. The victim is asked to withdraw money and wire it to an untraceable location.

Consumers need to remember the following points to prevent themselves from becoming a victim in these and other lottery scams:

-- You do not have to be a United State citizen to claim a prize

with the California Lottery.

-- Never cash or claim a lottery ticket for somebody you do not

know.

-- Never give anyone a security deposit before claiming a lottery

prize. The California Lottery does not require a security

deposit before paying a prize.

-- Never give your credit card numbers over the phone to anyone

attempting to sell you a lottery ticket or membership in a

lottery pool.

-- Beware of phone calls from anybody claiming to be from a

foreign lottery who asks you to send money and says that

before you can collect your prize you must first pay the

taxes. The California Lottery does not make you pay taxes

before collecting a prize. Any tax due comes out of the prize

itself.

If you or someone you know has been a victim in one of these crimes, immediately contact the nearest law enforcement agency or the California Lottery's Security/Law Enforcement Division at 1-800-LOTTERY.