DATCP Complaint Spotlight: Lottery Scam Snowballs

A complaint recently reported to DATCP highlights how scammers are using an escalating series of claims and tricks to steal as much money from their victims as possible. It’s important for consumers to ask questions and practice skepticism to keep themselves, their finances, and their identity safe.

It started when a consumer received phone calls claiming to come from the “New York Department of Consumer Protection,” stating they had won the Mega Millions lottery but had not yet claimed their prize. However, in order to receive that prize, the scammer said the consumer had to pay state and federal taxes plus additional fees. The consumer sent several payments totaling over $155,000.

The consumer was next contacted by a scammer impersonating the Colorado Department of Consumer Protection, who requested additional payment. The consumer became suspicious and thankfully did not pay, but soon after they were later contacted by someone claiming to be from the U.S. Department of the Treasury. That person informed the consumer they were investigating their case and said the previous calls had been scammers. They then said the U.S. Department of the Treasury could get the consumer’s money back, but they had to send money to cover attorney fees.

The consumer made the right choice by contacting DATCP as soon as they became suspicious of a scam. DATCP’s Bureau of Consumer Protection provided them with resources and helped prevent further theft. If you are asked for money or personal information, pause and think about the request. That pause can often prevent a scam from snowballing and help you identify the scam early.