Beware of Lottery and Sweepstakes Scams

Millions of consumers receive phone calls or mailings every day which claim they have won or are guaranteed winners of cash, vacations, electronics, cars, jewelry or other prizes; however, when they try to claim their prizes, they receive nothing, or they find they must first buy the company's products only to receive 'prizes' of far less value than represented.

In general, consumers should beware of:
...high pressure sales tactics,
...'one-time-only' offers,
...pressure to send large fees within a short time span,
...requests for credit card or other bank account numbers for verification purposes or payment of any fees for any reason,
...instructions to make payments via Western Union,
...requests for any fees required before delivery, including processing or assessment fees or fees under any other name, shipping and handling, and
...pay-per call fees.

If you have received a notification by letter or phone stating that you are a 'guaranteed winner', look for the following information to check the reality of that statement:

...Is the postage stamp a pre-printed bulk mail stamp, or is it an actual stamp? A bulk mail stamp signifies that the mailing has been sent to participants nationwide, and not to just a few 'guaranteed winners;'

...Read the small print carefully--it is there for a reason;

...If there are odds of winning listed, this means that you have not won, or even entered the contest yet;

...Do you have to call a 900 telephone number or some other pay per call number to find out more information? Use caution; this charges the cost of the call to your telephone bill. BBB experience with such prize promotions indicate callers often pay $10 to $30 or more to receive the least valuable prize;

...Bottom line - Do you have to purchase something or pay any fee for any reason in order to receive your prize winnings? According to federal law, if you have won something, you should not have to pay a penny or purchase anything to receive it. Canadian Government enacted legislation on June 21, 2002 that prohibits sending a notice that gives the recipient the general impression that they have won a prize but a fee is required. Therefore, it is now illegal in both the US and Canada to charge a fee for any reason in order to receive a prize which you supposedly have won.

While many sweepstakes offers come from companies who are trying to sell their products, a notification can just as easily be nothing but fraud. The BBB routinely urges consumers never to give out credit card or checking account numbers and never send money via Western Union or by any other method in order to collect a prize or enter a sweepstakes.

Read any mailings which seem to claim you have won a prize. Question any caller claiming you are a winner. Look for key words such as 'could,' 'may be,' 'possibly,' 'if,' 'qualified' or 'qualify,' 'chance,' 'potential,' and any other number of words which mean you have not actually won, but just might have a chance to win. Mailings should include odds of winning, a requirement by law.

In accordance with the federal law, reputable sweepstakes companies notify winners by mail or by courier and do not require a purchase or payment of a fee of any kind to receive prizes.