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$10K lost in lottery scam spree targeting small shops

Using stolen credit cards, scammers are cashing in on lottery tickets across Michigan, officials warn.

Downtown Traverse City.
Todd Betzold
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It started with a friendly request to buy lottery tickets, but for one Michigan convenience store, it ended in a costly scam. And police are saying this latest scam in Traverse City is very similar to a scam that impacted an Emmet County business recently.

The Traverse City store is out $10,000, and police have determined that this seems to be a coordinated effort. Investigators are uncovering a pattern that spans multiple counties and involves thousands of dollars in stolen Michigan Lottery tickets.

How does the scam work?

According to the Petoskey Department of Public Safety, the scam takes place when one or two people enter a convenience store and ask to buy a large amount of scratch-off lottery tickets. When going to make the purchase, their card doesn't go through and it's declined.

Once the card is declined, these scammers then offer to read the credit card number off their phone to the employee. The employee allows this to happen and the transaction is approved, so the scammers leave the store with the tickets.

It is after the scammers leave the store that the computer realizes the cards are stolen. Now the store is out of money, and the tickets are long gone.

A scam spree happening in Michigan

These lottery scams have been taking place in Michigan, with the latest incident taking place in Traverse City. According to Det. Will Bowen from the Petoskey Public Safety, “The scams occurred anywhere from Houghton, up in the UP, all the way down to south of Cadillac. The suspects seem to originate from the Battle Creek area.”

Besides getting out of the stores before the computer realizes the transaction was completed with a stolen credit card, the scammers also turn in any winning tickets before lottery officials mark the tickets as stolen.

Bowen told WPGN:

They take these lottery tickets, check them using the Michigan Lottery app, and then turn around and cash them out within a short time frame before the lottery bureau can do anything about it.

A possible crime ring?

Officials said the Traverse City store is now out $10,000 due to this scam, which is the same scam that took place at a store in Emmett County. Bowen has been sharing his findings with other agencies and state troopers. Because of that, it looks like it's bigger than anyone anticipated.

He said one state fraud investigator may compile the cases and present them to the attorney general's office. Bowen stated:

Just from talking to him, from his investigations, and the names that I've provided with my investigation, it sounds like this is more of a ring of people instead of just two or three individuals doing it. Anybody who's working at these gas stations or small shops in rural areas just needs to be aware that if anybody is coming in and attempting to purchase thousands of dollars of lottery tickets, coupled with credit cards that are having issues or not working, be very aware that it's potentially a scam and please call 911 immediately.

In addition, if anyone sees something like this scam taking place, officials are asking you to remember any details about the suspect's physical appearance to help them determine suspects.

Enjoy playing the Michigan Lottery, and please remember to play responsibly.

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