News Release

Vancouver – The British Columbia Securities Commission has become aware that an outfit using the name “BC Securities” is contacting individuals about paying an international tax on winnings from a variety of lotteries.

The commission has received complaints mainly from United States residents who have received letters from “BC Securities” informing them that they have won an “overrun” lottery (money accumulated because of unclaimed prize money awarded in lotteries in Australia, Canada and the U.S.). The letter states that, before people can cash their winning cheque, they must send money to the company holding the prize money in trust, to cover the cost of an “international tax.” The letter lists a 1-866-telephone number and office addresses located in Vancouver and Burnaby, B.C.

“We have been getting calls from people who have received the letters, thinking that we are associated with this organization and of course we are not,” said BCSC Executive Director Brenda Leong.

The commission cautions people to be careful when dealing with any firm that promises money or solicits payment of a fee or tax for a lottery or sweepstakes that they are unfamiliar with, as they could potentially lose their money.

According to the Better Business Bureau, in foreign lottery scams, victims are told they have won a foreign lottery, such as the Australian 645 or the Spanish El Gordo, but must send money to cover “taxes” or other “fees” before they get their winnings. Victims are sometimes asked for bank account or credit card numbers, but, instead of depositing money to those accounts, the scam artists make withdrawals or run up charges on the credit cards.

Alternatively, consumers may learn that they have “won” the opportunity to purchase foreign lottery tickets. This usually involves paying a fee and then more fees, in order to remain eligible for promised winnings, or victims are asked for personal information and a signature for “verification purposes.” In fact, there is no lottery and there are no winnings. The perpetrators of this scam want your money and your identity.

The BCSC does not regulate lotteries or sweepstakes. If you have been contacted by such an organization, do not send any money but get some additional information by contacting your local police department or PhoneBusters (www.phonebusters.com), a national anti-fraud call centre operated by the Royal Canadian Mounted Police and the Ontario Provincial Police. You can also contact the Better Business Bureau (www.bbb.org) to learn more about this scheme and other types of consumer scams.

The B.C. Securities Commission is an independent provincial government agency responsible for regulating trading in securities within the province.