Feeling lucky? Watch out for some common scams
Older adults have been identified as prime targets for sweepstakes, lottery, and prize scams. Recent data gathered from the Better Business Bureau (BBB), the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3), indicates that as much as 80 percent of the money lost in these types of scams are from consumers over the age of 65.
Despite concerted efforts by law enforcement these scams continue to thrive as, last year alone, the FTC received nearly 125,000 reports of sweepstakes, lottery, and prize scams, totaling $121 million in money lost to these fraudsters.
A recent BBB survey of those who reported money lost to such a scam found the following:
• The majority of victims are between the ages of 65-74.
• Individuals who have experienced a negative life event, such as divorce, job loss, or death of a loved one, in the past two years were more than three times as likely to fall victim to the scam.
• The more willing one is to take risks, the more likely one is to be victimized.
• Prize promotion fraud is most appealing to those who anticipate their income will decrease or stay the same over the next three years.
Whether the scammer tells you that you are a lottery winner of a lump sum of cash or the lucky winner of a luxury car from a sweepstakes you don’t remember entering, there are some telltale signs that your big win is too good to be true:
• You may be contacted by mail, telephone, email, text message, or social media to notify you of your prize. If you have not bought a lottery ticket recently and don’t remember signing up for any sweepstakes, be very wary. You could be a target of this scam.
• You should not have to pay for your prize. Whether they call it taxes, insurance fees, or a courier charge, legitimate sweepstakes do not make you pay a fee or buy something to enter or improve your chances of winning. There is no reason to give someone your checking or credit card account number in response to a sweepstakes promotion.
• If you are asked to deposit a check they have sent to you, then instructed to wire a portion of the money back to cover one of the fees noted above, you are probably being played. The check will turn out to be fake and you will owe the bank any money you withdrew.
• You may be told they are from the government or another organization with a name that sounds official or receive your notification on official looking letterhead. No federal agency or legitimate sweepstakes company will contact you to ask for money so that you can claim a prize.
True to form, the scrupulous scammers are also adapting this popular scheme to the times and including some COVID-19 twists to keep it current. For example, the need for additional safety precautions for prize delivery sounds like a legitimate, unforeseen cost that many would not think twice about right now. Likewise, delays in distributing prizes due to the pandemic give the scammers both extra time to swindle you out of more money and disappear with your cash.
Whether you are asked to send in $9.50 to claim a $100 gift card or $250 to claim a $5,000 prize. Size does not matter. A scam is a scam. If you have any doubt at all about the legitimacy of a prize you’ve seemingly won, please call the BBB at 713-341-6141 BEFORE sending any amount of money requested of you through the mail or over the phone. They will be happy to help you check it out and report it to the proper authorities if necessary.
If you have questions or need additional information about this scam or any other, please call the BBB Education Foundation at 713-341-6141.
Melissa Ramsey is the BBB Education Foundation columnist. For more information, call 713-341-6141.