Raffle fraud deepens as eight new suspects identified in KD 250,000 scam

• The Ministry of Commerce and Industry is conducting a regulatory review of raffle records since 2022, the period most likely affected by manipulation. It is working with the Central Bank and other regulatory bodies to establish a transparent system that upholds the integrity of future prize draws.

• The Ministry of Interior exposed a raffle-rigging scheme involving an official of the Ministry of Commerce and Industry, leading to the arrest of a citizen, an Egyptian woman, and her husband, with bribes ranging from 200 to 600 dinars.

As investigations into the “draws” fraud case continue, Al-Rai newspaper has learned that, alongside security inquiries into the suspects, the Ministry of Commerce and Industry is conducting a comprehensive audit of commercial draws from the past three years and reviewing winners’ names, while the Central Bank has directed local banks to postpone all draws to ensure transparency and report their findings.

The newspaper learned from informed sources that the Ministry of Commerce, following a preliminary review, has identified eight new suspects of various nationalities involved in fraudulent schemes.

Investigations indicate that around fifteen draws may have been rigged, with prizes awarded without justification, and the suspected fraudulent prizes—limited to cars—are valued at over KD 250,000.

The sources confirmed that the ministry has launched a regulatory inspection of all raffle records since 2022, the period most likely affected by manipulation, according to defendants’ confessions. They highlighted ongoing coordination between the Ministry of Commerce, the Central Bank, and other regulatory authorities to establish a more transparent system ensuring the integrity of future prize draws, regardless of their value.

Meanwhile, Central Bank of Kuwait Governor Basel Al-Haroun issued a circular instructing all local banks to postpone upcoming draws until the evaluation process is completed, stressing the need to safeguard customer rights.

He emphasized that, given the time elapsed since some banks introduced prize-linked accounts, a re-evaluation is necessary to ensure transparency, define requirements, and uphold sound governance.

The Central Bank stated in the circular that, as part of its efforts to regulate the banking sector, ensure smooth operations, and create a balanced framework that protects both customers and the banking industry, it is reviewing banks’ raffles and prize offerings. Given the time elapsed since these products were introduced, a re-evaluation is necessary to ensure transparency, define their requirements, and uphold integrity in line with sound governance principles.”

Forty suspects face investigation over prize draw fraud

As investigations progress on multiple fronts, a reliable source told Al-Qabas newspaper that forty citizens and residents are under suspicion for rigging the draws in exchange for cash payments. They will be summoned for questioning and presented with supporting evidence and documents.

The source revealed that the Ministry of Commerce and Industry is holding round-the-clock meetings to monitor withdrawals, emphasizing strict enforcement of the law. Anyone proven or suspected to be involved will be referred to the relevant investigative authorities.

He added that the ministry is reviewing and auditing all prize draws held since the beginning of 2024 and is developing a database of all winners. The review process covers draws for cars, cash prizes, in-kind rewards, and other giveaways.

On the security front, the Ministry of Interior, through the Criminal Investigation Sector and in cooperation with the Ministry of Commerce and Industry, announced the arrest of a network involved in manipulating lottery draw results. This action followed the circulation of a video on social media showing a person committing fraud during the draw process.

The Ministry of Interior stated that investigations identified the individual in the video as a citizen serving as head of the raffles department at the Ministry of Commerce and Industry. He was found to have exploited his position to systematically manipulate company raffles, ensuring specific individuals won in exchange for financial benefits.

Investigations also uncovered a network involved in rigging multiple raffles, including one where an Egyptian woman working for a charity won several prizes—five cars in her name and two in her husband’s.

After obtaining legal authorization, security teams arrested the citizen, as well as the woman and her husband, who were caught attempting to flee via Kuwait International Airport.

During questioning, the woman admitted her husband had introduced her to the scheme through an Arab colleague. She stated that a Caribbean national working with a logistics company could guarantee a win in exchange for a cash payout.

The bribes reportedly ranged from 200 to 600 Kuwaiti dinars for rigging raffles and prizes. The citizen confessed to fraudulent participation, splitting the proceeds with the Caribbean national.

Security authorities have identified other suspected winners involved in similar frauds. Their cases are under review with relevant authorities, and legal action is being pursued.