Prize Scams
Did You Really Win?
Have you ever dreamed of winning a large sum of money? If so, you may be one of the 57% of Americans buying at least one lottery ticket annually. Those desires for complete financial freedom run deep, so much so that it becomes fertile ground for scammers to take advantage of unsuspecting targets. Almost $338 million were reported lost to scams surrounding prizes, sweepstakes, and lotteries last year.
A sweepstakes scam typically involves misleading people into believing they’ve won a prize, often requiring payment of fees or personal details to claim the false winnings. These scams promise extravagant rewards that never materialize. Victims may receive texts, phone calls, correspondences, or emails, creating a sense of urgency to act quickly. Ultimately, victims lose money or compromise private information.
It is terrible that frauding innocent people is a common practice. That is why it is important to be vigilant about protecting yourself and your loved ones. Below is a list of some methods con artists use to get over on their victims. Look for one or more of these to help sidestep these schemes.
- False Notifications: If you receive a notification, especially an unexpected one, stating that you have won something but do not remember entering the contest, it is most likely a con.
- Request for Payment: No legitimate contest will ask you for payment for fees, taxes, shipping, or processing to receive the prize.
- Info Gathering: Scammers often request personal information such as social security numbers, bank account details, or credit card numbers. Some legitimate sweepstakes authorities may need to ask for some of the same type of information, so be sure you know who is asking you for the data.
- High-Pressure: Fraudsters frequently create a sense of urgency in an attempt to rush targets. This tactic works by forcing individuals into a decision without clearly thinking through the circumstances.
- Ambiguous: If the process needs more clarity or the person you are dealing with needs to be more transparent, it is probably a scam.
- No Headquarters: It is not authentic if you have researched and cannot find a physical location for the sweepstakes office.
You do not have to become a victim to report fraudulent activities. If you suspect a scam, it is imperative that you report it. One of the biggest weapons we have against fraud is education. When a report is given, the authorities investigate the crime and share the information with other government agencies, like the FTC (Federal Trade Commission). These agencies work together to stop fraud and to educate the public.
If you or someone you know has fallen victim to a sweepstakes, prize, or lottery scam by sending payment, you should act fast to stop payment or attempt to retrieve your funds. Your first step should be to contact your credit union or credit card company to report the fraudulent transaction. If you sent cash by mail, contact the US Postal Inspection Service at 877-876-2455 and ask them to intercept the package. To learn more about this process, visit USPS Package Intercept.
There are multiple places you can report fraud. It is recommended that you report it to as many places as possible. A great place to start is with your local law enforcement agency. Reporting fraud in Florida and to the Federal government is easy. Visit your state attorney general’s website or the FTC to file.