Police have warned residents not to respond to an Internet lottery scam which is promising a non-existent $2.5 million prize.

The con artists from 'UK International Lotto' have been targeting Island residents, telling them they have won the "prize".

But when contacted, UK International Lotto demand a fee of ?4,725 ($8,032) to "handle" the alleged transfer of cash.

The crooks, who are supposedly based in London, are using a variation of an advanced fee fraud that is commonly employed by Nigerian criminals.

In a cheeky twist, the con artists are using the names of members of the Gaming Board for Great Britain taken from their website, when contacting their intended victims.

The Gaming Board says the following companies are involved in the fraud: AVS Golden Age Finance UK/International Lotto UK/International Contracting Company Ltd/Spotty Lotto International Global Trust Agency/Equity Investments.

The Metropolitan Police in London - which says the fraudsters have targeted people in Finland, China, the US, the Netherlands and the UK - and the British High Commission in New Zealand, are warning people not to respond.

And yesterday, Bermuda Police said: "This is a typical advance fee fraud solicitation where they offer you nothing for something because you believe you are getting something for nothing.

"If the source of the email is a recognised internet provider (ISP) such as AOL, Yahoo or Hotmail, then email a copy of the letter to the ISP to the abuse department."