A 'Lotto' Concerns

Phony lotteries continue to be a jackpot for scammers, ranking as the eighth most prevalent type of fraud reported to the Federal Trade Commission — some 42,000 complaints in 2009. Many of the cons claim you've won faraway contests such as the Irish National Lottery.

Sign up for AARP's Money Newsletter.

Photo by: Nicholas Eveleigh/Getty Images

Beware of false claims that you've won a lottery.

But savvy swindlers have turned their attention to state lotteries. You get a bogus notification that you've won one. It's all part of a trick to part you with your money or personal information.

The latest variation, discovered in late August, was an e-mail claiming recipients had struck it rich with the Delaware Lottery through a "computer ballot system." It followed similar sham notifications concerning state lotteries in South Dakota, Colorado, New York, Minnesota and elsewhere.

Congratulations are not in order

No matter what the impersonated state, the ploy is the same: By e-mail, phone call or letter, you get a notice of congratulations promising a big payoff, complete with instructions to contact a named "claims agent" for more information. E-mails and letters can look legit because they usually have an exact replica of the lottery logo or state seal. Some list the actual address of the state lottery commission.

Here's what you need to know about state lottery scams:

• If you didn't buy a lottery ticket from an authorized vendor, you didn't win, plain and simple.

• No legitimate lottery will ever contact you with news of a win; it's your responsibility to step forward with the winning ticket in hand.

• You never have to pay upfront fees of any kind to claim a legitimate state lottery payout.

• Never believe claims of a guaranteed prize. Legitimate lotteries make no guarantees of winning.

• Be suspicious of anyone who approaches you offering to sell what's described as a winning lottery ticket. Often the excuse is that the person is in this country illegally and doesn't dare redeem it personally. It's all a lie, of course. This ruse is especially common in Florida and has claimed many older victims.

• Check winning numbers with your state lottery website or through media reports.

• Be alert to shady retailers who pilfer winning tickets brought in for redemption. They scan the ticket, claim you didn't win (or got just a small amount) and then pocket the ticket. You can protect against this by immediately signing your name to the ticket when you buy it, meaning the retailer can't sign it.

• If you have the good luck to hold a ticket with a big payout, don't go to the retailer — notify the state lottery office.

• If you wonder about a lottery notification, go to the website of the nonprofit group Fraud Aid to check its list of known phony lottery games. New ones are always emerging, but if your alleged jackpot is from one on the list, you can be sure it's a scam. Report suspicious winning notifications to your state lottery office and attorney general.
  

Also of interest: Sweepstakes "winners" become big losers. >>

Sid Kirchheimer is the author of Scam Proof Your Life, published by AARP Books/Sterling.