Insider Buzz: California man turns in lottery scammers

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When Daniel Larsen of Pleasanton got a letter from a Canadian company called Saatchi & Saatchi, he thought he had hit the jackpot — literally.

Enclosed in the envelope was a check for $4,900 and a letter saying this was just the start of a much bigger payday.

"It said I had won $250,000," said the 45-year-old painting contractor. "And the ($4,900) check looked so real, I really thought I may have for a minute."

However, as Larsen continued to read the letter, the company explained how he would need to wire $2,950 to the New Foundland company via Western Union or Money Gram to pay Canadian taxes on his winnings.

"At that point, I kind of had a gut feeling this was a fraud," said Larsen, who believed he may have had a slight chance of real winnings thanks to some Canadian lottery tickets he believes he purchased a few years ago. "I called up the company and someone said he was 'Paul Newman,' and at that point I was pretty sure it was a fake."

Larsen received the check on Thursday, and checked the company with the FBI on Friday. He was directed to PhoneBusters, a Canadian anti-fraud call center jointly operated by the Ontario Provincial Police and the Royal Canadian Mounted Police.

"There's a lot of scams out there," said Barry Elliott, a detective and staff sergeant for the Ontario Provincial police and coordinator of PhoneBusters. "The lotto scam is just one of them, and it attacks people of all ages."

Elliott said lottery scams are not new, but there are some new twists to the old schemes. However, the basic principle is still the same — some unknown company sends a letter saying you've won, often times along with a check for thousands of dollars. While the checks may look real, it's all part of a scam to part you with your money.

Elliott said in 2005, PhoneBusters received complaints of 11,000 attempts of prize fraud and were contacted by 12,195 victims who lost $59 million from scams. In January of this year alone, PhoneBusters has received complaints of 1,000 attempts of fraud and have been in touch with 882 victims who lost a total of $5 million.

Elliott said it is important to remember when being contacted by such scams that a real lottery would not ask for anyone to send them money.

"The best advice is if you see what you think is a scam, just throw it away," said Elliott, who added that those attempting to cash a fraudulent check also can be prosecuted with a crime. "Don't respond, don't do anything. Just throw it away."