The arrests took place this week during 176 raids in seven towns along the southern coast, including Malaga and Marbella, a police statement said.

The group allegedly sent around six million letters annually to Europe, United States, Canada, Australia, Japan and the Arabian Peninsula and managed to con some 20,000 people last year. The group's main scam was sending letters to people abroad telling them they had won prizes in the Spanish lottery but needed to forward a certain amount of money before they could collect their winnings.

Another scam involved the sending of email from an alleged African dignitary who wanted to dissolve an inheritance of US$20 million which required financial assistance from the recipients.

Police estimate the gang earned more than US$120 million ($202.2 million) annually in the scams and moved it about through more than 400 bank accounts.

The crackdown involved more than 400 agents, including agents from the Federal Bureau of Investigation and the United States Postal Service, according to the statement. Investigations began in 2003