AN 82-year-old Epping woman has told of how she lost over £13,500 of savings after being told she had won almost £1m in a Spanish lottery.

The pensioner has been left shocked and sickened after she agreed to fraudsters' requests for payments to cover "administrative costs and tax", which she was told had to be made before she would receive her "winnings".

Police are now warning people of the "complete scam" after it appears pensioners in the Epping area are being targeted.

The woman paid out £13,693.20 in three payments after she received an initial letter telling her she had won £985,000. The woman was then telephoned by a man who said he would act as her "agent" and needed £985, which she sent by electronic transfer through her bank.

She was then asked for £2,850 to cover "bank charges" and later sent £9,858.20 to cover "government tax".

Police were alerted when the woman received a telephone call the day before she had been told to expect her winnings asking her to send £24,645 which was being requested by the "Spanish Ministry of Defence" in the wake of the terror alerts.

Epping-based police community support officer Lynda Campbell, who is investigating the case, said: "The people who are doing this are dishonest, despicable fraudsters."

The woman, who does not wish to be named, remains hopeful that she may be able to negotiate to get at least some of her money back.

But in a warning to anyone else who receives such a letter, she said: "Don't do anything. Just ignore it. It's not worth it. It's like all the other scams. At the time I thought it was genuine. They sound so genuine."

She added: "It's not good for your heart. It just makes me feel sick. I put my hand out and it's wobbling. I'm in my 80s and just don't want this. They've phoned practically every day. In the beginning I returned their calls."

Another Epping woman who received one of the letters was alerted to the fraud when she asked her bank to transfer a large sum to a separate account.

Crime reduction officer Tony Ellis added: "These fraudulent letters are a complete scam. They seem to be targeting elderly residents in the Epping area this time. If anyone receives these letters they should put them straight in the bin. They're fraudsters trying to deceive vulnerable people into parting with their savings."

Mr Ellis said the woman involved in the second incident had been about to send a "substantial" sum of money to an address in Taiwan when she was alerted by her bank.