Includes video report
A rash of thefts of California Lottery tickets in San Jose prompted the state this week to roll out a new system aimed at preventing store owners from paying out purloined scratchers.
The new system forbids a practice that had allowed retailers to begin selling tickets before they confirmed that they received their full order of scratchers.
A thief or thieves exploited that practice by stealing packages of scratchers en route to retail outlets, according to a June 8 message announcing the new policy by Lottery Chief of District Sales Randy Forrester.
Retailers lost out because they wound up paying for Lottery tickets they did not receive and could not sell.
Multiple Lottery employees anonymously said they had for years told their supervisors about their security concerns with the scratcher activation process. They did not want to be identified because they were worried about workplace retaliation.
Two San Jose liquor store owners also said that they have received packages of scratchers with missing tickets. They did not want to be identified in a news story
UPS has a seven-year contract to deliver scratcher tickets to stores around the state. UPS spokesman Matt O'Connor said the company worked with a California law enforcement agency earlier this year to investigate theft of lottery tickets and "took appropriate action." An employee believed to be responsible is "no longer with UPS," O'Connor said.
Lottery spokesman Russ Lopez said the Lottery in February opened an internal investigation into missing tickets in Santa Clara County. He characterized the investigation as ongoing and declined to answer further questions about the extent of the theft, when it was first reported and whether any retailers had been reimbursed. Forrester declined to comment.
"We have since implemented improved policies to better protect against the fraud and theft of our products, and will continue to review these policies in the future," Lopez wrote.
Normally, tickets become activated and available for sale when retailers confirm that they've received their orders from the Lottery.
According to Forrester's email, the thief or thieves used an alternate method to activate a pack of tickets.
It simply required someone to cash in a single ticket at the store that was supposed to sell it to activate the rest of the scratchers in its package. Retailers were charged for the pack as soon as they accepted the stolen ticket.
"This practice has helped ensure players are not inconvenienced when the retailer does not follow our established process," Forrester wrote.
The thief, according to Forrester's email, would cash in a winning ticket at the retailer that was supposed to sell the scratcher, activating the pack. The thief would then cash in other tickets at different stores.
As of this week, Forrester's email to staff said scratchers will not be able to be cashed until the retailer confirms an order.
If someone tries to cash a winning ticket from an unverified scratch pack, "the following message will be displayed on the terminal: ORDER NOT CONFIRMED — Please Confirm the order now or return the ticket to the player and ask them to come back after the order can be confirmed," Forrester's email said.
His message said the Lottery would investigate the thefts and reimburse retailers. He wrote twice in the message that he did not want sales representatives to talk about the thefts with their customers.
"It is important that you sell the benefit of this change with your retailers and not discuss the theft issue that was the catalyst for the change," he wrote.
VIDEO: Watch a California lottery ticket theft
What gets me is the ingenuity of these crooks. They sure plan out everything to a "T". Prior to reading the article I knew the retailer had to scan the roll or barcode on the unsealed package.
Inside job UPS...hope that former employer gets what he deserves, some jail time instead of being let go and no further punishment. We may never know.
"According to Forrester's email, the thief or thieves used an alternate method to activate a pack of tickets.
It simply required someone to cash in a single ticket at the store that was supposed to sell it to activate the rest of the scratchers in its package. Retailers were charged for the pack as soon as they accepted the stolen ticket."
Major flaw not requiring the retailer to activate the books...
On a personal note: I only play scratch-offs when I get them as a gift. I only play MM & PB.
It is good to see CA Lottery change for the better. Where is Donna Cordova, the lottery spokesperson, when you need her? LOL!
It is time for a Californian to win Mega Millions tonight! ME!!!
That guy working on those scratchers like his life depended on it, is probably a customer. Won’t go so far as to say a worker at that store,the footage would give him away, just as it did for Tipton. That pulling motion, probably in construction, pulling electrical wires through floor joists & walls. Wouldn’t it be funny if on totaling his haul- he ends up with $100.00?
The other thing is typical of CA. Have a crisis, then act. The earthquake in 89, brought on the retrofitting of our bridges, tie downs straps to new construction of homes etc etc. Always “ implementing new procedures “ after the screw up.
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Once every-other blue moon, do I play a scratch-off ticket.
I have enough trouble trying to win something with Powerball and MM,
where I play more than I should, anyway.
But, I am so fed up with this daily rain, that I can't imagine all the brain power out there
hasn't come up with a way to stop it. This world can accomplish anything, or at least, to an extent, curb nature's tendencies. I HATE rain, I HATE rain. OK? OK, good.
We've sent men to the moon several times. We've sent a rover to Mars, etc.
Did I mention I hate rain?
I'm thinking they can set up a moveable pseudo-mountain sort of thing, and set it out, in he middle of the Atlantic. Of course, it would have to be massive and heavy enough to disrupt any major oceanic phenomena. Because what the heck good is it to just stand around, year after year, and watch these randomly destructive patterns repeat?
You hate rain Groppo? Are you staying indoors while all of this is going on? Make a fashion statement, by getting an assortment of fine umbrellas. As for yours truly, l love rain, love drinking water- it’s the only way l could achieve my porcelain skin. Do you drink water Groppo, or have you substituted it for beer?... just asking.
Anyways, have a great weekend.
That is literally insane that California made retailers pay for books they never got. Are you really saying that all you needed to do is cash a ticket and the whole book is activated? That would never happen in New York. You must confirm the book by entering the code from the book into the machine. Only the retailer can do that. Wake up California.
I know right. Wow
The DMV, city agencies charge exorbitant fees, stores hit you over the head for food, lotteries sell tickets after the jackpot was claimed, basically all robbery.
It's about time that the California Lottery, the state that is home to Silicon Valley, came into the 21th Century and offered online subscription.
According to spokespersons Russ Lopez and Donna Cordova on their website, www.calottery.com changes are happening in other parts of the Lottery business. They do have to work with the laws that were passed by the Voters. Plus the Lottery Commission.
Well if your state divides into three states (hope not) then each state can set up its own lottery department. Then on-line, Powerplay and Megaplier might come to fruition.
Yes, Bleudog101, California could split into three States. That would take a lot of work. A billionaire is funding this process. Plus it has to be passed in Congress.
I will wait and see if Powerplay and Megaplier are allowed in any of the new States.
We could follow Australia's example of having an entity notify us about wins. Bet it and forget it!
noise-gate, If President Trump has his way we could be looking at more decreasing tax rates. Lower taxes less spending versus the tax and spend liberals.
Did you notice that the total household wealth is now $100,000,000,000.00 That is 100 trillion dollars?
How high is the U.S. Debt? $22,000,000,000.00 Twenty-two trillion dollars.
Hmmm, mentions of Australia and Donald Trump and Powerball. Hmmm, Interesting. Of course! I get it. We’re talking about how being richer than everybody else makes you better than them! Lol.