$100,000 Lost To Lottery Scam By 93 Year-Old Retired Nurse And How You Can Avoid Being Duped

Cyber security expert John Sileo of 9NEWS talks about the Colorado woman, 93, who lost $100,000 to a group of lottery scammers.

It started with a series of phone calls, reports cyber security expert John Sileo of 9NEWS. And ended with a 93 year-old woman losing more than $100,000 to callers who said she had won the California Lottery.

Niece Sharon Hansen says there was virtually nothing her family could do to stop it.

Sharon Hansen tells her aunt's story.

For this family, it all started with a series of phone calls that began after the 2013 Colorado floods left many people homeless.

Sharon Hansen says the thieves started calling her aunt, telling her they needed to buy a phone so they could communicate with stranded members of their family who had lost everything to the flood waters.

"He told her they needed help. He needed someone to buy him a telephone and send it to his brother," Hansen said.

She told 9NEWS her aunt wanted to help and bought the phone, and then sent it to the address she was given. And then she got another call.

The scammers requested the aunt buy a phone to help flood victims.

"She got a call saying she won the California lottery… for $1.4 million or whatever… but she had to pay the taxes on it first. So, she went to the bank to get $4,500," Hansen said.

The retired nurse was so confused that she continued to send more money every time the con-men called, and now they were calling constantly. She truly believed there was a payoff of some sort at the end.

The non-refundable green dot cards from Walmart that the woman used for payment.

"She was buying these green dot cards from Walgreens. She would bring them home and give them the number," Hansen said.

And when cash is put on a card and the card number is used, the cash is of course gone. This happened over and over again, and if she hesitated, Hansen said, they would threaten her.

WHAT YOU SHOULD DO:

Most phone calls or emails advising that you have won a prize in a lottery that you did not enter are an outright scam. Some of these have even illegally used the Silver Lotto System website as a cover.

Don't get fooled - get wise. Ask yourself:

Did I even enter their draw?
Did I pay money to play their online or offline game?
Does it all sound too official? (This is your warning...official-looking emails and official-sounding calls are designed to make you think they're real).

1. If your answer is no to any question, then ignore them. Don't even reply to their email and hang up the phone. Don't forward any email on, so no-one else gets burned.

A boiler room scene from 'The Wolf Of Wall Street' where hard-sell is normal.

2. Don't call any phone number they give you. They usually have a boiler-room operation staffed by paid salespeople who are trained to trap you and convince you they are authentic.

3. And most importantly - do NOT send money, your credit card numbers, your bank account, social security number, driver's license or your ID - or anything - to anyone that "needs" it for authentication or payout. Don't pay them a dime!