Greek pair caught in lottery scam

Police in Greece say they have caught two men suspected of operating a fake lottery in Germany that has swindled some 36.5 million euros ($A54 million) from players over a three-year period.

"Members of this racket had tricked around 360,000 people in Germany into participating in non-existent lottery draws for a monthly fee of 29.90 euros," the police said in a statement on Tuesday.

"Their profit exceeded 36.5 million euros."

The racket used phone lists illegally obtained from betting companies and employed phone operators who offered cash rewards, cars and free trips to lure would-be victims.

Bogus companies had been set up to funnel the proceeds into various bank accounts.

The two men arrested in Athens had been senior operatives in the racket from 2009 to 2012, the police said.