Sweepstakes, Lottery and Prize Scams A Better Business Bureau study of how “winners” lose millions through an evolving fraud BBB International Investigations Initiative BBB Chicago
[email protected] BBB Dallas
[email protected] BBB Omaha
[email protected] BBB San Francisco
[email protected] BBB St. Louis
[email protected] BBB International Investigations Specialist C. Steven Baker
[email protected] Issued: June 2018 Introduction weepstakes, lottery and prize scams are among the lottery fraud occur over social media. BBB receives most serious and pervasive frauds operating today. many complaints from victims who were contacted SWhile the scams’ roots go as far back in the culture through Facebook. as gambling, the fraud continues to evolve with the times. • Some fraudsters contact victims on their phones, The scheme currently involves scammers telling people using text messages or pop-ups on the phone they have won a large amount of money in a lottery or browser claiming people have won large gift cards sweepstakes, sometimes by misusing the established or new smartphones. The goal of this type of fraud name of Publishers Clearing House Sweepstakes. Victims is to gather information to sell to other scammers, send money, purportedly for taxes or other costs that and to get people enrolled in “free trial offers.” must be paid before receiving a prize. Unfortunately, the • Another major set of fraudulent actors send winners don’t receive mailings to victims the promised prizes. telling them they have Nearly 500,000 won a large sum of people have money and need to reported this fraud to send a small amount, enforcement agencies SCAM typically $20, to in the U.S.