A man has been arrested in Cyprus after allegations were raised that he had swindled up to US$10 million in a lottery email scam.

Ali Mohamed Kdoud is accused of sending emails suggesting that the recipient had won a large prize in an overseas lottery.

The email recipient was asked to pay registration and processing fees which then allegedly ended up in a U.S bank account, run by Kdoud.

He was arrested after a two-year investigation by Interpol into his online activities.