Beware of lottery, sweepstakes scams
A new report by the Better Business Bureau (BBB) says sweepstakes, lottery and prize schemes are devastating victims financially and emotionally with ever-evolving methods.
These frauds concentrate on seniors, targeting them by direct mail, cold calling, social media, even text messages and smartphone pop-ups.
BBB warns consumers to be on guard against these serious and pervasive frauds and their perpetrators.
The report — 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 half a million 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 BBB 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.
Among the report’s key findings:
• 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.
• Sweepstakes/lottery fraud can strike through many channels — phone calls, text messages, pop-ups on a smartphone’s Internet browser, social media and mailings.
• In 2017, 2,820 individuals reported sweepstakes and lottery scams to BBB Scam Tracker. These reports show a median loss of $500, with wire transfer as the most frequent method of payment.
• Jamaica is a major source of “cold calls” to victims who are told they have won money. Although similar calls come from Costa Rica, the scam has had a major impact in Jamaica. More than 95 percent of reported fraud in Jamaica involves lottery or sweepstakes scams.
In 2017, 2,820 individuals reported sweepstakes and lottery scams to BBB Scam Tracker. These reports show a median loss of $500, with wire transfer as the most frequent method of payment.
The Better Business Bureau of Greater Houston and South Texas offers the following tips for consumers to avoid being caught in lottery or sweepstakes fraud:
True lotteries or sweepstakes don’t ask for money. If they want money for taxes, themselves, or a third party, they are most likely crooks.
Call the lottery or sweepstakes company directly to see if you won. Publishers Clearing House (PCH) does have a sweepstakes but does not call people in advance to tell them they’ve won. Report PCH imposters to their hotline at 800-392-4190.
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 state lottery agency.
Do an internet search of the company, name, or phone number of the person who contacted you. Check with the Better Business Bureau at BBBHouston.org as well.
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.
Also, remember that law enforcement and government agencies do not call and award prizes. The Better Business Bureau is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Visit www.bbbhouston.org or call 713-868-9500. Leah Napoliello is senior director of Investigative Services with the BBB of Greater Houston and South Texas. Send questions to Leah Napoliello, Better Business Bureau, 1333 West Loop South, Suite 1200, Houston, TX 77027, or e-mail lnapoliello@bbbhou.org. Include your mailing address and phone number.