Sweepstakes Scams

Soon after Irvin sent in a sweepstakes entry, he began to receive many other sweepstakes mailings that implied he was close to being a grand prize winner. Thinking he could increase his odds of winning, he began buying books, magazines and other products through these sweepstakes. He spent $1,500 but never won anything.

 

Before you respond to a sweepstakes mailing or telephone call that says you are their "guaranteed winner," ask: What's in it for them?

The truth is, sweepstakes are not trying to give you money - they're trying to get your money. The only aim of their mailings and telephone calls is to get you to buy products. Fraudulent prize promotions want to trick you into paying for a "processing fee" or to pay by calling a "900" number. Too often, seniors on fixed incomes are lured by the hope of winning a sweepstakes into buying products they don't need or paying excessive fees. Some people even lose their life savings because they become addicted to entering sweepstakes, ordering merchandise in the mistaken belief that it will increase their chances of winning. They can't stop because they don't want to lose what they've "invested." They continue to receive mailings and phone calls that suggest they are close to winning. In reality, their chances of winning a legitimate sweepstakes are very small, and there are many fraudulent sweepstakes that either don't award any prizes, or offer gifts that turn out to be almost worthless.

  • Don't be pressured into buying anything through a sweepstakes. A sweepstakes must tell you that "No purchase is necessary." By law, you can enter and have an equal chance of winning without buying anything.

  • Be skeptical if a call or letter tells you that you are almost "surely the winner" or that you are "very close to winning." The truth is that thousands of people are getting the same phone call and mail. Your chances of winning are very small.

  • Never send money to pay for "taxes," "shipping costs," or "processing fees." Prize winners pay taxes to the Internal Revenue Service, not to sweepstakes promoters.

  • Be aware that a request to send money by courier or overnight delivery is a sign of a scam.

  • Be wary of sweepstakes that have a name similar to, but not quite the same, as a well-known national charity.
 
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How do I verify a home improvement contractor's license and complaint history?

Call the Attorney General's Consumer Protection Division, at 1-877-765-8388, and the Bureau of Commercial Services, at 1-517-373-8376.

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