Lottery Scam Report

This report investigates lottery scams, a significant issue affecting both individuals and businesses. It defines lottery scams as advance-fee fraud often initiated through deceptive emails, mail, or phone calls promising large winnings. The report details various types of scams, including bogus holiday clubs, prize draw scams, miracle health cure scams, clairvoyant mailings, and fake foreign lotteries, highlighting their substantial financial impact. The report emphasizes the relevance of these scams to modern business practices, noting how scammers exploit established businesses and target smaller companies for financial gain. It concludes with recommendations for self-protection, advising individuals to avoid paying for prizes, be wary of unsolicited email announcements, and verify the legitimacy of contests before participation. The report underscores the need for increased awareness and proactive measures to combat these pervasive and financially damaging scams.

Individual Assignment
(Lottery Scam)

TABLE OF CONTENTS
introduction....................................................................................................................................1
1. Executive summery..................................................................................................................1
2. Definition of the allocated topic...............................................................................................1
3. Overview and discussion of the topic.......................................................................................2
4. Relevance to the modern business............................................................................................3
5. Conclusion and recommendations............................................................................................3
references.........................................................................................................................................5

INTRODUCTION
At present each and every economy is affected by the recession and due to this reason
purchasing power of every individual is very low. So, everyone wants to get huge amount of
money in less efforts (Barclay, 2014). Due to this reason individuals attracts towards the lottery
organizations which offers appropriate amount of money to customers. But, most of the time
individuals suffer from the scam or fraud in which they pay specific amount of money to buy
ticket and reveal the lottery amount of money but after completing the lottery time they do not
get any amount of money. Therefore, it is one of the major issue for public because it increase
the financial loss for them. Along with this, it is also associated with the business. The current
research will comprise relevance of the lottery scam with the modern business scenario.
1. EXECUTIVE SUMMERY
Lottery scam is one of the major issue for each and every nation which is affecting the
financial stability of the individuals and entire nation. Report has described that it is also known
as one of the popular business which is not good for economic health of country. The current
report has defined lottery scam and discussed different types of scam such as Bogus holiday
club, Competitions, Prize draw and sweepstake scams, Miracle health and slimming cure scams,
Clairvoyant mailings and Fake foreign lotteries (Jayabalan, Ibrahim and Manaf, 2014). Along
with this, it has suggested some recommendations about emails, prize and contest for self-
protection from lottery scam.
2. DEFINITION OF THE ALLOCATED TOPIC
Lottery Scam can be defined as an advance-fee fraud which start with the fake and
unexpected email notification, mail and phone call. These type of scam explains that “You have
won” such kind of money in a lottery. These types of scams are generally conducted for getting
personal information about the specific person. Along with this, in some Lottery Scam victim
needs to pay specific fee to release the money of lottery amount (Isacenkova and et.al, 2014).
Moreover, most of the lottery scams utilizes the name of valid lottery organizations or other
corporate companies which are operating their business in real world.
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3. OVERVIEW AND DISCUSSION OF THE TOPIC
Lottery scam is one of the major business and as per the estimation British consumers
lose around £3.5 billion to scams every year (Bourne and et.al, 2013). This amount is equivalent
of £70 for each adult living in the UK. There are some most common scams which are described
as under:
 Bogus holiday club: Major Cost of UK consumers in this scam is £1.17bn a year and
number of victims are 400,000. It means each losing an average of £3,030. In generally,
holidaymakers of UK approach around their resorts and offer scratch card. In which
customers get a big amount of money as lottery prize (Scam and Scam, 2016). For getting
this price and money holidaymakers insist customers to join a presentation and where
they pressurized into exclusive holiday club which does not provide all services which
have offered. Some holiday makers target customers by phones and emails.
 Competitions, Prize draw and sweepstake scams: in this type of scam people get letter,
text, and unsolicited call saying you're a winner but for calming prize money customer
needs to ring an expensive premium rate phone line which starts with the cost of up to
£1.50 a minute. In UK more than million people in the UK lose £80m (Roper, 2013).
 Miracle health and slimming cure scams: These types of scams generally conducted on
the behalf of amazing health breakthrough or miracle treatment. In these types of lottery
attraction of the customers is gathered on the basis of pills, lotions, creams and other
products supposedly cure everything from baldness, cancer, impotency or promise easy
weight loss. Around £20m amount of money is spent by customers in UK in every year
(Benegal, 2013).
 Clairvoyant mailings: Lottery scam mails are sent to thousand individuals but psychic or
clairvoyant mails are usually personalized. These mails offers prediction that will change
the life of person in return of a specific payment. Due to these scam the total loss of
money annually is around £40m a year in UK (Long, 2016).
 Fake foreign lotteries: Most of the individuals receive a letter, phone call and email
saying that they have won a major payout in an overseas lottery, and are asked to send
money to cover administration or taxes. After sending money winners do not get their
winning amount. Approximately, £260 million amount of money is become a part of
these lottery scams.
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Therefore, there are number of scams which may provide financial loss to public of UK.
But, government of every nation and authentic lottery organizations provide appropriate
guidelines and warnings of lottery scam (International Lottery Scams, 2016).
4. RELEVANCE TO THE MODERN BUSINESS
Scammers taking it as business and for attracting large number of customers they make
up lottery names all day every day. Along with this, running their scam business they send
emails including information with the big amount of money of lottery which have won by you.
Along with this, scammers frequently go on about lot numbers and claims agents. Including this,
in this business scammers have more than one country listed in wining notice (Better Business
Bureau warns of lottery scams, 2016). In modern business scenario scammers are targeting
established business for getting huge amount of money by providing most attractive promotional
offers and deals which can help them in building their business in effective manner. Foreign
scammers target small business of other countries to start their business in UK and other
developed nations with very little amount of investment in their ideas. On the other hand, lottery
is one of the major business in the modern business scenario. Authentic businesses can generate
appropriate amount of profitability from this because they needs to give price to a single person
but they get large number of customers who wants to invest their money for wining price. So, it
is also one of the major aspect of the modern business (Sweepstakes & Lottery Scams, 2016).
5. CONCLUSION AND RECOMMENDATIONS
The current research project has concluded that lottery business are increasing day by day
but these business also leads increment in the lottery fraud. It increases the economic loss for
every nation which affect the purchasing power of general public. There are different types of
lottery scam such as Bogus holiday club, Competitions, Prize draw and sweepstake scams,
Miracle health and slimming cure scams, Clairvoyant mailings and Fake foreign lotteries.
Recommendations:
There are different ways by which individuals can protect themselves by these lottery
scams which are described as under:
 Don’t pay up to claim your prize: Individuals should not needs to pay money or buy a
product for getting their winning prize. Especially they needs to request for sending their
money via net banking.
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 Be wary of email announcements: Scammers emails about the wining prize but
generally valid organizations do to the house of winner with big camera crew for such
kind of wining amount because it helps them in promotion. So, individuals needs to be
wary of email announcements (Sweepstakes & Lottery Scams, 2016).
 No one can win the contest without enter: Most of the lottery amount is offered for those
contest in which individuals have not taken part. So, individuals needs to cross check
about such kind of lottery.
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REFERENCES
Books and journals
Barclay, C., 2014. Using Frugal Innovations to Support Cybercrime Legislations in Small
Developing States: Introducing the Cyber-Legislation Development and Implementation
Process Model (CyberLeg-DPM).Information Technology for Development. 20(2).
pp.165-195.
Benegal, V., 2013. Gambling experiences, problems and policy in India: a historical
analysis. Addiction. 108(12). pp.2062-2067.
Bourne, P. A. and et.al, 2013. Lottery Scam in a Third-World Nation: The Economics of a
Financial Crime and its Breadth. Asian Journal of Business Management. 5(1). pp.19-51.
Isacenkova, J. and et.al 2014. Inside the scam jungle: A closer look at 419 scam email
operations.EURASIP Journal on Information Security. 2014(1). pp.1-18.
Jayabalan, P., Ibrahim, R. and Manaf, A.A., 2014. Understanding Cybercrime in Malaysia: An
Overview. Sains Humanika. 2(2).
Long, R. C., 2016. Wells Fargo Advisors’ Elder Client Initiatives: A Review of the First
Year. Public Policy & Aging Report. 26(1). pp.34-35.
Roper, G., 2013. ‘Scamming’: Wanton Criminality or Resistance? Making the Case for Public
Theology in the Light of the Legacy of Sam Sharpe.International Journal of Public
Theology. 7(4). pp.426-443.
Scam, P. S. P. L. and Scam, F. B. B., 2016. Archives for Web Design Admin.Policy.
Online
Better Business Bureau warns of lottery scams. 2016. [Online]. Available through: <
http://wivb.com/2016/01/13/better-business-bureau-warns-of-lottery-scams/ >. [Accessed
on 16th June 2016].
International Lottery Scams. 2016. [Online]. Available through: <
http://wivb.com/2016/01/13/better-business-bureau-warns-of-lottery-scams/ >. [Accessed
on 16th June 2016].
Sweepstakes & Lottery Scams. 2016. [Online]. Available through: <
https://www.bbb.org/council/bbb-scam-stopper/top-scams/sweepstakes-lottery-scams/>.
[Accessed on 16th June 2016].
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