Taiwan Officials ‘Baffled’ by $600K Lottery Scam Involving Genuine Winning Tickets

Three men in Taiwan have been arrested after one attempted to claim two jackpot prizes worth a combined US$612,000 using genuine tickets that belonged to other lottery winners.

The case has baffled authorities, who are investigating how the suspects were apparently able to print winning tickets and claim prizes that weren’t rightfully theirs.

The alleged fraud took place in Penghu County, an island archipelago off Taiwan’s western coast, where a 28-year-old man surnamed Chang attempted to redeem two NT$10 million (US$306,000) prizes on Oct. 5 and 12, according to United Daily News.

Another suspect, 24, also surnamed Chang, attempted to claim a NT$200,000 (US$6,100) prize.

Employees became suspicious of the men’s extraordinary run of luck and refused to pay the larger prizes, instead alerting police.

Investigators subsequently discovered that the three suspects possessed more than 30 winning tickets. They had already successfully redeemed more than 20 between Oct. 6 and 18, collecting NT$199,600 (US$6,100), according to Taiwan’s Central News Agency (CNA).

A Lottery With Every Purchase

Taiwan’s unusual Uniform Invoice Lottery, introduced in 1951, turns everyday shopping receipts into lottery tickets.

Businesses issue numbered receipts for purchases, and the government holds prize drawings every two months, with the top award worth NT$10 million.

The scheme was designed to combat tax evasion by encouraging consumers to demand receipts, making it harder for businesses to conceal transactions.

Electronic receipts can also be used to claim winnings, with certificates printed at convenience-store kiosks.

Investigators believe the suspects used iBon kiosks to print authentic winning certificates using information associated with other people’s purchases.

The Ministry of Finance has confirmed that the rightful winner of one of the NT$10 million prizes has since come forward with supporting documentation and claimed the money.

No Hack Detected

It’s unclear how the suspects obtained the information needed to print winning ticket receipts. According to United Daily News, investigators are examining whether they had help from insiders with access to the data or whether computer systems were compromised.

Officials said there was currently no evidence that the government’s electronic invoice system had been hacked.

“We are also baffled,” Lou Mei-chung, director-general of Taiwan’s Taxation Administration, told reporters, describing the apparent method as virtually unprecedented.

On Tuesday (Oct. 20), the Penghu District Court ordered all three suspects to be held for two months without outside contact over concerns about collusion, destruction of evidence, and further offenses.

The Ministry of Finance maintains that existing safeguards, including systems designed to flag duplicate prize claims, remain secure.

Authorities are continuing to investigate the source of the receipt data and whether others were involved in the scheme.