by Southern Arizona Better Business Bureau
A new report by 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.
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 at least $117 million out of half a million Americans and Canadians in 2017 alone. 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.
- These scams 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 these scams to BBB Scam Tracker
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, where the amount of money generated by lottery fraud has resulted in gang wars between rival fraud groups. This has also led to a dramatic spike in violence. More than 95 percent of reported fraud in Jamaica involves lottery or sweepstakes scams.
BBB Tips:
- True lotteries or sweepstakes don’t ask for money before you claim a prize.
- Call the lottery or sweepstakes company directly to see if you won. Publishers Clearing House (PCH) not call people in advance to tell them they’ve won.
- 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.
- 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.
Read the full study at us.bbb.org/lotteryscamstudy.
