Sweepstakes Scam Alert
Be wary of news that you've just won a lottery or sweepstakes that you never entered. It may be part of a nationwide scam that could end up costing you big money.
Scammers are using the lure of a sweepstakes to trick consumers into sending in money to claim a "prize" they have supposedly won. Some scammers mail out millions of "winner" notifications instructing the "winners" to send a fee for "processing costs" to collect their prize. In this case, there is no prize, and they have lost their money.
In another version of this scam, which can trick consumers into losing thousands, "winners" of a Canadian lottery are receiving what look like legitimate checks to cover fees for taxes and insurance. They are instructed to cash the enclosed check and wire the money to someone in Canada. By the time they realize the check is a counterfeit, they have already wired the money. And since wiring money is the same as sending cash, their money is gone and recovery is difficult. In addition, it is illegal to play a foreign lottery.
How can you tell if the sweepstakes offer you received in the mail is a real sweepstakes or a scam? According to the U.S. Postal Inspection Service and the Direct Marketing Association, legitimate sweepstakes are fun and free. You should never have to pay a fee or purchase a product to collect a prize.
You can protect yourself by taking the following precautions:
- Never disclose your credit card number, bank account information, or other
personal account information.
A legitimate prize company would not ask for this information. - Don't pay to collect sweepstakes winnings.
You never have to pay to play or collect your prize in a legitimate sweepstakes. - Don't be pressured to wire money.
Scammers push this so they can get your money before your realize you've been cheated.
Bottom line - if it seems too good to be true, it probably is. Take a step back and evaluate the offer. If you receive a check that is suspicious, ask us to help you verify its legitimacy before depositing or cashing the check.
To obtain more information about current mail scams or frauds, visit the U.S. Postal Inspection Service website.
