Lottery Scams

A new report by Better Business Bureau (BBB) says sweepstakes, lottery and prize schemes are using ever-changing methods to hurt victims financially and emotionally. These frauds concentrate on seniors, targeting them by direct mail, cold calling, social media, and even text messages and smartphone pop-ups. BBB warns consumers to be on guard against these serious frauds and their perpetrators.

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 common 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.

Some fraudsters contact victims on their phones, using text messages or pop-ups on the phone browser claiming people have won large gift cards or new smartphones. The goal of this type of fraud is to gather information to sell to other scammers, and to get people enrolled in “free trial offers.”

Another major set of fraudulent actors send mailings to victims telling them they have won a large sum of money and need to send a small amount, typically $20, to receive their winnings.

Mail also is used to tell people that they have won and need to call a number to learn more about their winnings. These letters also may include counterfeit checks that will supposedly cover the “fees.”

Read the complete BBB Report here.

True lotteries or sweepstakes don’t ask for money before you claim a prize.
If they want money for taxes, themselves, or a third party, they are crooks.