Number up for Loot scam

Jan 20 2008 by Ian Robson, Sunday Sun

WATCHDOGS have warned against foreign lottery scams hitting North householders.

The Office of Fair Trading has told the public to watch out for letters from abroad promising huge winnings.

Recipients include retired hospital porter Brian Waddell who received a mailshot promising 815,810 Euros.

He asked me: “I am worried about the authenticity of the letter.

“You read about such things being a scam and members of the public losing a lot of money in the process.

“If this is the case then perhaps you could warn others who may receive these awards.”

Brian, 64, of Ryhope, Sunderland, did not respond to the letter but is worried about other people who are not so careful.

The letter claimed he was a winner in an El Gordo sweepstake lottery.

El Gordo — meaning the Fat One — is the official lottery in Spain but the mailshot was from a promotion company.

It provided details on how to claim the money but warned Brian to take action before February 4 or lose the money. He was also told the promotion company would keep 10 per cent because they had bought the alleged winning ticket.

The Office of Fair Trading said scams using the El Gordo name were common.

The OFT said: “The official operator of the Spanish El Gordo lottery, Loterias y Apuestas de Estado, has issued a warning about fraudsters using the name El Gordo and forging documentation and bank forms to obtain money under false pretences.

“Mailings and emails are being sent to UK consumers claiming they have won the Spanish lottery.

“In order to claim their “prize” recipients are asked to provide their bank account details and told that five to 10 per cent of the winnings will be retained for costs.

“However, the “'winners” are later contacted and asked for various fees in order to release their alleged prize, and they never receive a penny.

“Genuine Spanish lottery prizes are always free from taxes.”

Brian said he was concerned because he had never heard of the sweepstake until the letter arrived out of the blue.

It said he had been selected from six million names across the world in a computer ballot system.

But it ordered him to keep his good luck secret as part of the company’s security protocol.

The Office of Fair Trading says winners should not usually have to pay anything to get their prize.

They have issued a list of warning signs which suggest a scam.

They are:

V The approach, whether in writing, by phone or by email, is unsolicited

V There is a very short time in which to respond to claim your prize or winnings

V There is an invitation to send a “processing” or “administration” fee to obtain a prize or reward.

V The source of the promotion is based overseas

V And there is an invitation to send money out of the country by money transfer.

The Advertising Standards Authority said it received many calls about overseas lotteries including mailshots coming from Spain.

A spokesman said: “We get a lot of complaints about lottery scams using the name El Gordo.

“They fall outside our remit because they are generated from abroad and we are not allowed to make an adjudication. We will, however, work closely with our counterparts in other countries.”