A HAMPSHIRE grandmother was conned out of nearly £20,000 after falling victim to an international lottery scam.

Police have launched an investigation into the bogus US scheme which asked for cash to release a $1m prize.

The 81-year-old, who was widowed just months earlier, was tricked into sending four cheques and taking out a £10,000 bank loan.

A bank clerk only foiled the scam when the woman tried to take a second loan of £25,000 to pay a fake US tax request.

The victim had been planning to give a sizeable chunk of her retirement savings to charity.

Now police and trading standards have issued new warnings to people not to be duped by fake competition letters and e-mails.