In this third and concluding part of article on Internet
Lottery scam - we have presented a checklist to help
you detect bogus offer and how these fraudsters cheated
thousands of people in USA, Europe and India.
You will find the Indian Internet lottery scam not
only different but highly innovative !
How to Detect A Bogus Lottery Offer
- Did you buy the lottery ticket or entered in a
contest ? If not and you still receive 'winning
notification' - it must be a hoax.
- The mails look very professional with liberal
citing of authentic looking numbers - reference
number, serial number, agent number, tel number,
fax number, batch number etc.
- The email gives you a reference number to quote
and a phone number to call. The supposedly unique
reference number is in fact often identical in every
email sent !
- There is always a 'mix-up of numbers' and you
are advised to keep 'winning information confidential
until your claims has been processed and money remitted'
- As con artists are e-mailing 'winning notifications'
in thousands or millions - the confidentiality clause
makes sure you do not hear same story from your
friends and get suspicious
- In a legitimate contest you never have to pay
taxes up front. Income taxes are either deducted
at source or you claim winnings while filing your
tax return
- There is never a processing fee to claim a legitimate
prize.
- It should never cost anything to enter a contest
- with the exception of lottery tickets sold by
state approved dealers.
- Research done on this suggests that the perpetrators
are the same people who carry out the "Nigerian
Scam" (please see previous issues for details).
Like Nigerian scam, you will be asked for your bank
account details and/or an advance fee to facilitate
the transfer. Either way you are likely to be ripped
off.
Internet Lottery Fraud in Various Countries
BBC News (May 9' 2002)
Lottery scam tricks Britons - 500 people have complained
in the UK
By Philippa Busby
BBC Radio Five Live
Hundreds of people in the UK have been conned out
of thousands of pounds after falling victim to a telephone
fraud based in Canada, an investigation by BBC Radio
Five Live has found.
The Canadian fraudsters telephone British residents
telling them they have been entered into the Canadian
National Lottery for free.
A few weeks later they call back to tell the person
they have won a huge prize, often in the region of
£175,000.
They then demand several thousand pounds to pay for
the tax on the winnings.
In some cases victims have lost more than £40,000.
The cash is sent but the prize does not exist.
(Source: http://news.bbc.co.uk/2/hi/uk_news/1977396.stm)
ABC - New York
Foreign Lottery Scam Leaves Winners High And Dry,
And Broke
(New York-WABC, March 18, 2002)
You would think winning the lottery would be a good
thing, but if your winning ticket is from a certain
Canadian lottery, think again. The 'game' targets
the elderly, and then makes them pay up...
Source: http://abclocal.go.com/wabc/news/7onYourSide/WABC_7side_031802telemarketing.html
The Indian Scene
The lottery fraud surfaced in India in a truly innovative
form - perhaps the first Indian cyber crime .
Kola Venkata Krishna Mohan is a compulsive gambler
who played cards regularly at high stakes in various
clubs in the coastal city of Vijayawada.
During one of his gambling binge, he lost as much
as Rs 30 million in 1998.
He was on the look-out to make good the losses by
hook or crook. During a visit to London, he learnt
about the Euro lottery and staked some money on it
in vain.
Then a bright idea crossed his mind - he invented
the story that he had won the lottery. He created
a website and an email address on the Internet with
the address 'eurolottery@usa.net.' His web-site named
him as the beneficiary of the 12.5 million pound Euro-lottery
A Telugu newspaper in Hyderabad received an email
that a Telugu had won the Euro lottery. The website
address was given for verification. The newspaper
sent the query and got the "confirmation"
since Kola Mohan had himself created and manipulated
the website.
The Telugu daily published the story and other newspapers
and the media in general followed suit. Nobody tried
to verify the claim at the genuine address of Euro-lottery.
Taken for a ride by his claim, people made a beeline
to Krishna Mohan for deposits, partnerships, donations
etc. He became a celebrity overnight and began leading
a luxurious life. He purchased a posh house and cars.
He was provided gunmen by the police for his security.
Mohan collected millions of rupees from several individuals
and financiers at four to nine per cent interest per
month. Some nationalised banks also lent him money
in a bid to attract the Euro deposit. He used this
money to pay interest to some creditors to retain
their confidence. To repay one loan, he took another.
However, the fraud came to light when a cheque discounted
by him with the Andhra Bank for Rs 1.73 million bounced.
Mohan had pledged with Andhra Bank the copy of a bond
certificate purportedly issued by Midland Bank, Sheffields,
London stating that a term deposit of 12.5 million
was held in his name.
After the cheque bounced, Andhra Bank authorities
verified the authenticity of the bond certificate
with the Midland Bank. They were shocked to learn
that the bond certificate was fake. Thereupon, on
November 25, the Andhra Bank Eluru Road branch officials
lodged a complaint with Governorpet police station
against Mohan for "cheating and forgery."
The police registered a case against him under sections
420, 468 and 471 of the Indian Penal Code.
In the meantime, Chief Minister N Chandrababu Naidu
also ordered the Crime Branch-Criminal Investigation
Department of the state police to probe into the antecedents
of Mohan who had joined the Telugu Desam Party in
May that year and even donated one million rupees
to the NTR Memorial Trust set up by the TDP.
Mohan claimed that the manager of a London-based
company had collaborated with him in realising his
plans to defraud people. The police confiscated a
laptop from his possession and also seized some incriminating
documents.
(Source: http://www.rediff.com/news/1999/nov/30ap1.htm)
