These types of scams are all fraudulent schemes designed to trick people into giving money or personal information, sometimes both. While anyone could become a victim of fraud at any time, elderly people tend to be more susceptible to these types of schemes. Criminals prey upon the elderly with this kind of fraud for the same reasons they always do: trusting nature, loneliness, possible diminished mental capacity, asset size. Honestly, elderly people are more likely to feel like they have to answer the phone whenever it rings even if they don’t know the number. This is another reason our seniors are hit with fraud harder, younger generations tend to ignore calls from unrecognized numbers. These aren’t just petty crimes, they are calculated attacks on some of society’s most vulnerable members.
Sweepstakes and Lottery scams tend to work in the same manner as far as how they are executed. Scammers will contact their victims via phone call, text message, or email, claiming they have won a lottery or sweepstakes. Scammers will use official sounding names or logos to appear legit. Publisher’s Clearinghouse is a very common sweepstake we deal with in the fraud world. Foreign lottery “winners” is also very common. Here is the most important thing to ask yourself when being contacted about winning a lottery or sweepstakes…. Did you actually enter? You see, winning a prize from a sweepstakes means that at some point you had to have entered or registered. In order to win the lottery, you have to buy a ticket. How is it possible to win something you were never in the running for? If it seems to good to be true 9 times out of 10 it is. Also, with sweepstakes and lottery scams, the criminal will always ask for money up front for taxes or processing in order for you to claim the prize. Here is the next most important thing to remember about lottery and sweepstakes winnings, if it is truly a prize, you don’t have to pay for it. Taxes will come out of your winnings before you even get them in a legitimate lotteries or sweepstakes. Of course, depending on what tax bracket you fall in, you may owe even more taxes come April 15, but you never have to pay before you receive your winnings. Scammers will also say don’t tell anyone; this needs to stay a secret until you get all your winnings. If you receive an unsolicited phone call from someone who says you have won millions of dollars and some vehicles but all you have to do is send them money, hang up the phone!
Here are a few red flags of Sweepstakes/Lottery Scams:
- Unsolicited notifications (calls, text, email, letter in the mail)
- Requests for upfront payments
- Pressure, urgency, requests of secrecy
- Requests for personal or financial information
- Payment in the form of gift cards, wire transfers, or cryptocurrency
- Fake checks sent to you in the mail
Bottom line, dishonest people are always going to find a way to scam someone out of their hard-earned money. Unfortunately, these people target the most vulnerable people in the population. By staying vigilant and informed, recognizing the red flags, verifying sources, and protecting your information, you can help to prevent yourself and others from becoming victims of these and other types of scams.
