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From the Bureau: Don’t fall for sweepstakes scams
Beware of callers asking for a payment or fee
By Bobby Hansen, - From the Bureau columnist
Sep. 1, 2024 5:00 am
Those who enter sweepstakes and lotteries always await that special phone call notifying them that they’ve won big.
Unfortunately, scammers know just how to play into emotions and are very good at tricking people into paying for prizes they haven’t actually won.
The most frequent consumer report at the BBB involves fraudulent online contact or phone calls from folks who impersonate lottery or Publishers Clearing House representatives.
Many scams have gone high tech, but this one remains pretty simple.
The consumer is contacted from someone claiming to be a lottery or sweepstakes employee. They inform the victim that they have won millions of dollars and a new car. They might even send a photo of the car and ask for specific delivery instructions for the winnings. There might be further enticement when they state the prizes will be delivered by real celebrities.
Next comes the catch that every consumer should consider a big red flag.
Before receiving the prize, there is a payment that must be made for some form of a fee for taxes or processing.
To pay these “fees,” the individual on the phone requests the purchase a gift card and asks to be provided with the numbers on the back of the card. They also tell you to send or wire money to a specific bank account. These fees can be hefty, ranging from a few hundred to thousands of dollars.
There can be another layer to the scam when they ask for more personal information like a bank name, account and routing numbers.
What to do? Once it becomes clear that the call is a scam, hang up the phone. However, the scammer may call back multiple times and leave several messages asking for the money, making it difficult to end communication. Resist the urge to engage further.
How to avoid scams
- Remember, you have to play to win. If a random caller says that you have won a lottery or sweepstakes but don’t remember entering one, it is likely a scam. Keep track of actual sweepstakes entries and read the fine print and rules.
- Never pay upfront fees to claim prizes. No legitimate sweepstakes will ask for fees to receive prizes. Any fees that claim to be for taxes, shipping and handling or processing are fake and a tipoff to stop all communication. Be very wary if told to be secretive about being a winner.
- Don’t get caught up in the excitement. Sweepstakes scammers will try their best to get the victim excited about winning, but don’t let that cloud good judgment. Think logically, especially when asked to pay money or to hand over personal or financial information.
- If asked to pay with a gift card, it’s likely a scam. Paying with a gift card is one of the most common tactics scammers use to steal money. If given urgent, specific instructions from a stranger about the type of gift card and where to buy it, do not proceed with the purchase.
Bobby Hansen is regional director for the Better Business Bureau Cedar Rapids office. Comments: (319) 365-1190; info@dm.bbb.org