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Prizes, sweepstakes, and lottery scams accounted for 5% of all scams reported in PA in 2017. To help our members avoid falling victim to these scams, we created this easy guide. This article will cover:
- How these types of scams work
- How to tell if a sweepstakes is legitimate
- What to do if you’ve been scammed
Let’s get started!
Last week we talked about advertising decal scams. Read part one of our scam series here.
How Prize and Sweepstakes Scams Work
These scams work by making you believe you have won a lottery, a contest, a sweepstakes, or some other prize giveaway. The prize notification could happen in-person, over the phone, through an email, or even a letter in the mail. What they all have in common is that you have to either send money or provide personal information to get your winnings. The scammer then keeps your money or uses your personal information to steal your identity.
Here’s an example:
You receive a letter from the National Sweepstakes Bureau. Congrats! You’ve won $30,000! All you have to do to claim the prize is send the National Sweepstakes Bureau a wire transfer of $500. This $500 will cover taxes, shipping and handling, and/or processing fees. You gladly wire the money. However, you don’t receive your prize winnings. You try to reach the prize sponsor, but no one will answer.
In this situation, the scammer takes the $500 and disappears. It will be next to impossible to get that money back. The major warning sign of this scam was that they asked you to pay a fee to get your winnings. No legitimate sweepstakes will make you pay money!
Other common warning signs include:
- They want you to send them money first before giving you the prize
- They ask for personal information
- They ask you to wire transfer money to them
- You are urged to keep it a secret until you collect your winnings
- They pressure you to act quickly
- You don’t remember entering a sweepstakes
- The lottery is from a country outside the U.S
How to Tell if a Sweepstakes is Legitimate
First, make sure the prize doesn’t trigger the warning signs listed above. Then do your own investigation to make sure it’s real. Follow these steps.
1) Google the prize sponsor or sweepstakes name.
A simple google search of The National Sweepstakes Bureau would have shown you that the bureau does not exist. Searching the name is an easy way to verify that a contest is real or if others have been scammed by the same contest. Look for the name on trusted sites like:
2) Contact the sponsor directly.
Don’t use the contact information that the prize notification provided. Instead, look in a telephone directory, do a google search, or look for the contact info directly on the sponsor’s website. The scammer probably put their contact information in the prize notification. Contact the company directly to double-check your winnings.
These scams affect thousands of people each year. If you think you were a victim of a prize scam, report it to the following people.What to Do If You Are a Victim of a Prize or Sweepstakes Scam
Your bank and/or credit union – if you gave the scammer any personal information, your financial institution will need to take precautionary measures.
If your prize notification came in the mail, notify the U.S. Postal Service.
Still Unsure if it’s a Scam?
Talk to your local bank or credit union. They will know how to identify a sweepstakes scam. If you have any questions about these types of scams, leave a comment below!
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