Frustrated Auckland City Police have been investigating scams and warning victims about the scratch and win scam since mid-2013 and, despite regular publicity and warnings, have identified more than 150 people who have sent nearly $4 million to offenders, some of whom continue to send money even after they have been warned.
The victims' stories are all very similar.
Usually they receive a glossy travel brochure along with two scratch and win tickets. One of the tickets shows the recipient has 'won' second prize, usually between US$160,000 and US$175,000.
Police believe there are new mail-outs occurring two or three times a month and which are sent throughout the country.
The scammers constantly re-brand their 'product' by changing the travel company's names. The company names most recently used are: Asia Star Holidays; Moonspirit Paradise Tours; Panmarina Travel; Royal Hibiscus Tours and Blue Oasis Travel Agency.
These are backed up by seemingly plausible websites.
The victims are put in touch with the 'prize' sponsor and, once they have 'verified' they are the 'winner' they are asked to pay upfront fees such as:
- Entertainment tax.
- Hong Kong Government Taxes
- Court Costs
- Transaction Insurances
- Fees to 'join' the travel company
- Fees to join an investment group.
The victims are told that many of these fees are refundable. It is common for people to lose $20,000 to $30,000 at a time.
As each payment is made, the next payment is requested. The reasons for asking for money do not stop until the victim either runs out of money or refuses to pay any more and the scammers most often ask that the money is sent to people in China through money remittance agents.
Often the offender offers to 'pay' half the fees but this is simply a ploy to encourage victims to send more money.
"Unfortunately many New Zealanders are falling for these types of scams and thereby making it very profitable for the offenders," said Detective Senior Sergeant Aaron Pascoe.
"Victims are promised their 'Guaranteed' refunds will be paid in 45 days - but they never are. These people are in the business of taking money, not giving it back."
Some victims identified and warned by Police that they are being scammed have refused to accept the advice and have continued sending money until their funds are exhausted.
"Let's be clear, there is no prize and any money sent to these offenders is gone forever," Mr Pascoe said.
"We have had people who, months after we have contacted them, have continued to send 'one last payment' to release their 'winnings', which they never receive.
"We need people to wise up. If it is too good to be true, it almost certainly is and you never, ever pay a fee to release prize money. If you are asked to pay up front to release winnings, it is guaranteed to be scam."
ENDS
Issued by Noreen Hegarty
Auckland City Police Communications Manager
Ph 09 302 6947 or 0274-951-589
Website: www.police.govt.nz
