FRANKFORT, KY (July 8, 2005) – Attorney General Stumbo announced today that his Office of Consumer Protection is receiving numerous inquiries and complaints regarding foreign sweepstakes and lotteries. Recently, the Office has opened investigations involving three individuals who were scammed out of $10,000, $2,100 and $13,000 respectively.

Consumers are led to believe by telephone or mail that they have won a lottery or sweepstake and should send money to pay for taxes and fees in order to receive their winnings. “Unfortunately, many consumers fall prey to the scam and wire money, usually to Canada, Costa Rica or other areas outside the United States,” said Stumbo. “Of course, they never receive anything in return.”

Some con artists victimize consumers even further. When consumers indicate to the caller that they do not have the funds to send, the caller makes plans to give the consumer part of their winnings in advance to cover the costs of the fees. Unsuspecting consumers receive either cashier’s checks or certified checks from the cons and are instructed to deposit the funds into their bank accounts. These checks are so believable that they even fool the banks. Consumers are then given further instructions to wire the “fees” in order to receive their big prize.

Later, the consumer is contacted by their bank which reports that the checks are counterfeit and that the money should be returned. “Consumers not only have lost money by wiring the funds, but then are pursued by banks to return the funds or be prosecuted,” explained Stumbo. “This is why educating consumers is a top priority of my Office. Once stolen, a consumer’s money is very difficult to recover.”

Consumers should follow these tips to avoid victimization: