Advance Fee Fraud Continues to Harm Texans

The Office of the Attorney General has heard from many Texans who in some cases lost well over $100,000 each to advance fee fraud. The variations of this scam are numerous, often including tales of political persecution and family intrigue, but the common theme is the existence of a large sum of money, which the intended victim of the scam can obtain merely by serving as an intermediary for a financial transaction. The dead giveaway is that, before the victim can actually get the money, he or she must first send a sum of money ("advance fee"), which the scam artist claims is for taxes, payoff money, transfer or processing fees, or other dubious charges.

In its latest form, an elderly Houston-area woman reported losing nearly $16,000 believing she had won the Jamaican lottery. The “lottery official” even went as far as putting an accomplice on the phone who posed as the “President of Jamaica,” reassuring the woman that she had won and encouraging her to continue sending money to cover the “processing fees” to a $2.5 million jackpot. In the end, as is always the case in international lottery scams, the elderly woman stopped receiving calls from the scam artists once her savings were gone.

Perpetrators of these scams devote countless hours to perfecting their pitch. Along with the phone calls, victims may receive official-looking "winnings confirmations" and "certificates" in the mail with elaborate seals and long serial numbers to give the appearance the lottery is legitimate. The con artists are armed with instant answers for even the most skeptical victim. For example, when victims ask why they were selected if they never bought a ticket, callers may say that their lottery is a program sponsored by their country's government and the U.S., and that they were given a list of names from U.S. authorities to be chosen at random.

Once a person has been thoroughly hooked by an international lottery scam, it can be very difficult to convince that person that there is no grand prize just out of reach. In fact, consumers who lose money to advance fee fraud often are victimized further by so-called “recovery” scams. In these cases, the same con artist who stole the victim’s money in the first place calls again, posing as a bank employee or government official and promising to help “recover” losses or return stolen “fees.” The caller requests an up-front charge or asks to “verify” financial information in an attempt to trick the victim into revealing confidential bank account numbers. Individuals who become involved in recovery scams after an advance fee fraud end up losing even more money.

As law enforcement, you can help. A uniform sometimes can be more persuasive than words. The respect that you command as a law enforcement officer can be used to convince a would-be victim not to send any more money to a crook. Everyone in law enforcement should be prepared to back up the concerned friend, banker or family member of an individual who is in danger of being bilked by a bogus sweepstakes or lottery.

It may also help a potential victim to know that buying, selling and trafficking in foreign lotteries is a violation of federal criminal law. Most victims of international lottery scams are law-abiding citizens that have not bought tickets in a foreign lottery. Knowing that the promotions and transactions associated with these scams are against the law may convince a would-be victim to throw away the solicitation or hang up the phone.

Most perpetrators of international lottery scams and advance fee fraud reside in foreign countries. The U.S. Secret Service has jurisdiction to investigate, but without significant cooperation by the countries involved, there is little hope of arresting and prosecuting these criminals. Some governments are cooperating and conducting their own investigations. PhoneBusters, the anti-fraud call center located in Canada, accepts information about foreign lotteries and sweepstakes by e-mail at info@phonebusters.comor at (888) 495-8501.

Advance fee solicitations are a dangerous fraud to consumers. The most effective way to combat these scams is through the cooperation of law enforcement agencies and the dissemination of timely information. As always, thank you for your service to the State of Texas.

Greg Abbott
Attorney General of Texas