Kazakhstan's lottery scams drain millions despite harsh legal crackdowns
Fraudulent Schemes Disguised as Giveaways and Lotteries Persist in Kazakhstan Despite Criminal Liability
Kazakhstanis are still being lured into scams under the guise of promotions, raffles, and lotteries—despite the threat of criminal prosecution. Victims are promised cash, gifts, or bonuses, only to lose money or unwittingly become part of illegal operations. Drawing on insights from Fingramota.kz, we examine where harmless giveaways end and outright fraud begins.
How Scammers Exploit Fake Raffles and Lotteries
Fraudsters typically operate through social media and messaging apps, using deceptively simple tactics. A potential victim is notified of a "win" or invited to join a promotion, then directed to click a link or register. Next, they're asked to pay a "fee," "tax," or "shipping cost." In some cases, scammers request bank details or SMS verification codes. More elaborate schemes may offer "employment"—such as processing money transfers or assisting with cash withdrawals—effectively turning victims into money mules (or drops), unwitting accomplices in laundering criminal funds.
Other scams use fake raffles to recruit participants into financial pyramids. One notorious case involved ELL QUATY, a Ponzi scheme disguised as a consumer cooperative in Abai Region. Organizers promised members interest-free installment plans for homes and cars in exchange for "membership fees." To attract new investors, they even staged a raffle for all-expenses-paid trips to Turkey. The scheme collapsed, leaving over 1,500 victims with losses totaling 6.8 billion tenge. The mastermind was arrested last year and remains in pretrial detention.
In 2023, a resident of Shymkent ran an illegal lottery on Instagram, hosting live streams from two accounts to "give away" luxury cars, smartphones, jewelry, and appliances. Participants were required to purchase tickets priced between 5,000 and 100,000 tenge. No prizes were ever awarded, but the organizer illicitly pocketed around 96 million tenge. A court later sentenced her to one year of restricted freedom.
The Risks of Participating in Dubious Raffles and Lotteries
First, you may simply lose money—once scammers collect "processing fees" or "prize delivery charges," they vanish without a trace.
Second, sharing personal or financial details can have dire consequences. Handing over verification codes, passwords, or account information gives fraudsters access to your funds. They may drain your accounts, take out loans in your name, extort your relatives, or even blackmail you by threatening to leak private data online.
Third, agreeing to help transfer or withdraw money—even unknowingly—could make you an accomplice. Under the law, assisting criminals, regardless of intent, carries criminal liability. Ignorance is no defense.
What Are the Penalties for Participating in Fraudulent Schemes in Kazakhstan?
Depending on the actions taken, provisions of Kazakhstan's Criminal Code may apply:
- "Fraud" – the theft of another person's property or the acquisition of rights to another's property through deception or abuse of trust. Violators face up to 10 years in prison, depending on the severity of the offense—whether it was a one-time act, repeated, committed by a group, or involved particularly large sums.
- "Illegal Entrepreneurship" – conducting business without registration or a license, in violation of the law, or in prohibited sectors, resulting in significant harm to victims or profits for the organizers of the criminal scheme. Penalties include up to 5 years in prison, again depending on the severity of the crime.
- "Illegal Provision, Transfer, or Acquisition of Access to a Bank Account, Payment Instrument, or Identification Tool, as well as Illegal Execution of Payments and/or Money Transfers" – commonly known as "dropping," where individuals assist in transferring or cashing out funds. Handing over a bank card to strangers carries a sentence of up to 3 years, while making transfers or payments on behalf of others can result in up to 5 years in prison.
Additionally, the Law "On Lotteries and Lottery Activities" stipulates that only licensed operators and agents may sell and distribute lottery tickets. Violations under the Administrative Code's article "Breach of Kazakhstan's Lottery Legislation" carry fines ranging from 500 to 2,000 Monthly Calculation Indexes (MCI). If a lottery is used as part of a fraudulent scheme, criminal liability under the "Fraud" article applies.
How to Protect Yourself from Fraudulent Giveaways and Lotteries
- Don't believe in "no-participation wins" – if you never registered for a lottery or drawing, you couldn't have won.
- Never pay for a prize – requests for "taxes" or "prize delivery fees" are clear red flags for scams.
- Verify the organizer – if you're invited to join a lottery or giveaway, check with government agencies and review feedback from other participants.
- Avoid suspicious links – no matter how tempting the terms, links may lead to phishing sites designed to steal your data.
- Never share personal information – SMS codes, CVV numbers, and passwords are for your eyes only. This data protects your security, finances, and personal information.
- Beware of dubious "side jobs" – offers to "help with transfers" could drag you into illegal schemes, with consequences ranging up to criminal prosecution.
