The lure of sweepstakes winnings all too often convinces consumers to send in their own money to claim a “prize” they’ve supposedly “won.” Postcards, letters, e-mails, or phone callers tell consumers that the only thing that separates them from their “winnings” is a fee to cover the taxes or service charges. Unfortunately, many consumers find that the winnings they’ve been told about never materialize.
In a new development of the sweepstakes scam, these con artists are using names of government agencies and actual phone numbers that hide where they’re calling from. Claiming to represent the National Consumer Protection Agency, the nonexistent National Sweepstakes Bureau, or even the Federal Trade Commission (FTC), these scammers claim that the delivery of the sweepstakes prize is being supervised by the supposed government agency. Internet technology they use makes it appear that they’re calling from Washington, D.C., or sometimes the victim’s own area code.
Consumers may be asked to wire money to a foreign country—usually through a commercial money transfer company like Western Union—to an agent of Lloyd’s of London or some other well-known insurance company to “insure” delivery of the “prize.” In fact, no insurance company is involved; the con artists take the money and disappear.
The real Federal Trade Commission offers the following advice to help prevent you from falling for the lure of sweepstakes scams:
Don’t pay to collect sweepstakes winnings. If you have to pay to collect your winnings, you haven’t won anything. Legitimate sweepstakes don’t require you to pay insurance, taxes, or shipping and handling charges to collect your prize.
Hold on to your money. Scammers pressure people to wire money through commercial money transfer companies like Western Union because wiring money is the same as sending cash. If you discover you’ve been scammed, the money’s gone, and there’s very little chance of recovery. Likewise, resist any pressure to send a check or money order by overnight delivery or courier. Con artists recommend these services so they can get to your money before you realize you’ve been cheated.
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Look-alikes aren’t the real thing. It’s illegal for any promoter to lie about an affiliation with—or an endorsement by—a government agency or any other well-known organization.
Disreputable companies sometimes use a variation of an official or nationally recognized name to try to confuse you and give you confidence in their offers. Insurance companies, including Lloyd’s, do not insure delivery of sweepstakes winnings.
Phone numbers can deceive. Some con artists use Internet technology to call you. It allows them to disguise their area code: although it may look like they’re calling from Washington, D.C., or your local area, they could be calling from anywhere in the world.
If you receive a call from someone claiming to be a representative of the government trying to arrange for you to collect supposed sweepstakes winnings, file a complaint at www.ftc.gov. It’s most helpful to enforcement officials if your complaints include the date and time of the call and the name or phone number of the organization that called you. Although scammers may call using a telephone number that disguises their location, law enforcers may be able to track that number to identify the caller.