Thousands of Americans are losing money every day to scam artists operating beyond the boundaries of the United States. In many cases, these international crooks are sitting across the border in Canada - just far enough away from U.S. laws and jurisdiction to reduce the chances that American victims will ever recover their money.

Foreign lottery ticket resales lure Americans to buy phony "low-risk" chances in supposed high-stakes lotteries. Victims of these scams not only lose their money, but also risk violating federal law, which generally prohibits playing lotteries by phone or mail. Through telemarketing and print ads, cross-border scam artists also offer advance-fee loans, lucrative sounding investment opportunities, and bogus prize promotions.

Cross-border scams seem to be a growth industry. According to the Federal Trade Commission's consumer complaint database, Ontario, Quebec and British Columbia rank fourth, sixth and 20th among states and provinces as a geographic source of fraudulent telemarketing activity.
Although the FTC and state governments have joined forces to present a united front in the fight against telephone fraud by sharing information and resources, consumers still are in the best position to spot - and stop - these kinds of scams. Identifying cross-border fraud can be daunting. The reasons: con artists based in Canada often give a "mail drop" address in a U.S. city. In addition, Canada and most Caribbean island nations use telephone area codes that are integrated with the U.S. phone system and accessible by direct dialing, without long, cumbersome, and obvious foreign "country-codes."

Here's how you can stop telephone fraud, whether it's cross-border or cross-town:

• Ignore offers to buy tickets in a foreign-based lottery, no matter how tempting they are. Except for legitimate state lotteries, it is a violation of U.S. law to participate in foreign lotteries by phone or mail.

• Don't fall for a promise. Telephone solicitations that require an up-front fee for advance-fee loans, unidentified investment opportunities or prize promotions are against U.S. law.

• Keep your credit card and bank account numbers to yourself. Don't give them to anyone who asks during an unsolicited sales pitch.