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Sweepstake scams are targeting unlucky Americans with the promise of life-changing sums of money, only if they pay the “taxes”. Lottery and sweepstake scams that have been reported often impersonate legitimate sweepstake companies to con their targets into believing their “windfall” is real.

What Are Lottery and Sweepstake Scams?

Lottery and sweepstake scams see bad actors impersonating legitimate lottery and sweepstake companies in order to dupe their targets into paying the “taxes” on a large sum of money that they will win once the payment has been made. These fake sweepstakes sound like a stroke of luck, however victims of this scam feel anything but lucky.

A Connecticut man was contacted as part of a lottery and sweepstake scam and informed he had won $9.6 million in prize money, but there was a catch. In order to collect the prize, he had to pay “taxes” resulting in almost $300,000, which was lost to the scammer.

How do Lottery and Sweepstake Scams Work?

Scam sweepstakes often impersonate legitimate sweepstake companies, leading to a more believable scam. In the case of the Connecticut man, the scammer that called him was a woman claiming to be associated with Publishers Clearing House (PCH). PCH is a known and legitimate sweepstake company who is famous for their large “prize patrol” cash rewards and unfortunately is a common name that is mentioned in the lottery and sweepstake scams that have been reported.

The scammers will contact their targets with messages such as this .

How to Spot Lottery and Sweepstake Scams

If lottery and sweepstake scams are impersonating legitimate lottery and sweepstake companies, how can these scams possibly be identified? Don’t worry, there are many ways to tell, even if they mention a legitimate company name:

• The caller asks you to pay a fee or tax to receive your prize
• The caller claims you can pay to increase your chances of winning
• You are contacted unexpectedly about a prize for a draw you haven’t entered
• The caller asks you to open a bank account and deposit funds
• The caller asks you for any personal information such as a bank account number, credit card or social security number

Lottery and sweepstake scams also use texts, email, and direct message via social media to run these scams so stay vigilant on all communications. They may also use other companies names like Reader’s Digest or fake names such as “National Sweepstakes Bureau”.

How do I Protect Myself From Lottery and Sweepstake Scams?

Lottery and sweepstake scams may contact people out of the blue claiming that they have won millions of dollars, and it sounds too good to be true because that’s exactly what it is. To win the lottery or a sweepstake, you must enter. If you haven’t entered, then you know it’s a lottery and sweepstakes scam contacting you.

However, if you have entered a prize draw and are uncertain if the call or message you’re receiving is legitimate, here are a few steps to help you out:

• Make sure you research the company claiming to call you. If you are unsure of the legitimacy of a call or message claiming to be from them, contact them directly. Not only are you protecting yourself, but by making the company aware, you may be protecting others.
• Legitimate lottery and sweepstake companies will never ask for payment in order for you to receive your prize. Nor will they ever ask for money in order to win a larger prize.

It is best practice to never engage with unknown numbers and report phone numbers being used by scammers to your carrier. If you believe you are the victim of a scam, you can report it to your local police, state Attorney General’s office and the FTC.