Seniors continue to be target and victim of lottery scams
A report by the Better Business Bureau on Tuesday says sweepstakes, lottery and prize schemes are devastating victims financially and emotionally, using sophisticated and clever tactics — particularly for seniors.
Seniors can be targeted by direct mail, cold calling, social media, or text messages and smartphone pop-ups.
BBB warns consumers to be on guard against unsolicited lottery contests that guarantee big winnings.
The report, called “Sweepstakes, Lottery and Prize Scams: A Better Business Bureau Study of How Winners Lose Millions Through an Evolving Fraud,” notes these scams bilked $117 million out of around 500,000 Americans and Canadians in 2017 alone — with actual victims and losses likely numbering much higher.
BBB received 2,820 sweepstakes and lottery scam reports in Scam Tracker in 2017, with a median loss of $500.
Seniors are the most frequent target and suffer the largest losses by far in these scams, which the report found commonly originate in Jamaica, Costa Rica and Nigeria.
The report recommends more work from law enforcement in three areas: Jamaica, which has seen an upswing in violence related to lottery fraud profits; in the U.S., where law enforcement is urged to step up extraditions and prosecutions of overseas fraudsters operating in the U.S.; and globally, as law enforcement agencies worldwide are encouraged to take steps toward holding deceptive mailing organizations accountable and stopping fraudulent mail.
It also urges Facebook and other social media platforms to take steps to weed out fake, fraudulent profiles and make reporting fraud easier.
“Legitimate lotteries require the purchase of a ticket in order to win, and will never ask winners to pay or submit personal or financial information in order to claim their prize,” said Mary O’Sullivan Andersen, president and CEO of BBB Serving Southern Alberta and East Kootenay in a recent news release.
“Scammers prey on people’s excitement to win big, or people who are in dire need of financial help. BBB is here to help create trustworthy connections between consumers and legitimate businesses.”
The report found the majority of lottery or sweepstakes scam victims are between 65 and 74 years old.
Among that age group, people who recently experienced a serious negative life event, and who expect their income in the near future to remain steady or decline, are even more likely to be victimized.
Local residents are asked to keep the following in mind when dealing with a potential scam lottery or sweepstakes:
• True lotteries or sweepstakes don’t ask for money. If they want money for taxes, themselves, or a third party, it is most likely a scam;
• Call the lottery or sweepstakes company directly to see if you won. Publishers Clearing House does have a sweepstakes but does not call people in advance to tell them they’ve won. Report PCH imposters to their hotline at 800-3924190;
• Check to see if you won a lottery. Call the North American Association of State and Provincial Lotteries at 440-361-7962 or your local lottery agency;
• Do an internet search of the company, name, or phone number of the person who contacted you;
• Law enforcement does not call and award prizes; and
• Talk to a trusted family member or your bank. They may be able to help you stay in control of your money in the face of fraudster pressure
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