Home Members Tools Credit Cards
   

  • Learn the Signs of a Sweepstakes or Contest Scam

    The FTC received 1.8 million consumer complaints in 2011. Scams related to prizes, sweepstakes, and lotteries were third on the list of top complaint categories with more than 100,000 complaints. Identity theft and debt collection were the top two complaint categories.

    Falling for a sweepstakes scam can be costly; you might be out of hundreds or thousands of dollars. Thieves may even scam you out of enough personal information to commit bank fraud or identity theft, which are both costly and time-consuming crimes to deal with.

    Scammers go through great lengths to make their notifications look legitimate so recognizing them might be difficult. Some have even impersonated the FTC and other government agencies in their scams. Knowing the signs of a scam is critical.

    Scams May Ask You to Wire Money

    Sweepstakes scams often try to get you to pay some advance fee to collect your prize. They may claim that you’ve won a certain amount of money but you’ll have to pay taxes and fees before they can send you the prize. But why can’t they just deduct the taxes from the prize, if there really is a prize?

    These advance fee sweepstakes scams often get you to wire the money because it’s difficult to get your money back after you’ve wired it. Some scammers never send back anything after you’ve paid the fees. Others send something back, but “prize” may be worth even less than the fees you paid.

    In another type of scam, scammers send a fake prize check and ask you to wire back the fees and taxes owed. (Would a legitimate company really trust a consumer to send back fees?) Cashing a fake check is a crime and the bank may not realize the check is fake until after you’ve cashed it and after you’ve wired back the required “fees.” Once the bank figures out the check is a fake, they’ll look to you to repay any money you’ve already spent, including money you may have wired to the scammer.

    Winning a Contest You Never Entered

    Being asked to wire or send money to collect a prize is just one of the signs of a scam. Another sign is that you’ve won something in a contest you never entered. If you know you never enter contests or sweepstakes, chances are notification of a win is just a scam.

    But, if you have entered a contest, do some due diligence to see if you’ve won. Use the internet to find the true contact information for the sweepstakes owner and contact them directly to see if you’ve won.

    Lottery Scams

    Be on the lookout for lottery-related scams, too. Note that you must have purchased a lottery ticket with the winning numbers to win the lottery. Many major lotteries put the winning lottery numbers online, so you can confirm whether you’ve really won or not. And, playing a foreign lottery is illegal unless you visited that company and purchased a lottery ticket there.

    Other signs of a scam: you’re never addressed by name, the notification is from a government agency or bureau (who never offers sweepstakes), or the notification was sent by bulk mail.

    Stop Unsolicited Sweepstakes Calls

    If a telemarketer calls you about a prize, they’re required to give you certain information about the promotion including your odds of winning, a disclaimer that no fee is required, and the conditions you’ll have to meet to redeem your prize.

    To stop telemarketers from calling you, you can register with the National Do Not Call Registry at www.donotcall.gov or by calling 1-888-382-1222 from the phone you want to register. You’ll have to renew your registration every five years. If somehow a company slips through the cracks, you can ask them to place you on their do not call list. Stop mailings by writing or calling to remove your name from the mailing list.

    Report any sweepstakes scams to the FTC by visiting www.ftccomplaintassistant.gov.

    Source: FTC.gov
    Comments 1 Comment
    1. Meya's Avatar
      Meya -
      Great information!
  • Disclaimer

    Information in these articles is brought to you by Finance Globe. Banks, issuers, credit card, and other companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles and is further subject to our terms and conditions.
  • Recent Activity

    Roughdraft

    Sam's Club Discover card

    Thread Starter: Roughdraft

    I was online paying my Sam's club card and noticed that they offer a mastercard as well. Does this mean they no longer offer the Discover card? I was...

    Last Post By: EdwardS July 29th, 2014, 09:56 AM Go to last post
  • Recent Forum Posts

    EdwardS

    Re: Sam's Club Discover card

    They do still offer the discover card.

    EdwardS July 29th, 2014, 09:56 AM Go to last post
    bocald99

    Re: Report Your "Credit limit Increases" Here!

    Capital One Quicksilver CLI from 500 to 750 auto increase. If this card didn't have the age that it does, I would have fired Cap One already. This card

    bocald99 July 27th, 2014, 11:53 AM Go to last post
    jemannie

    Re: Report Your "Credit limit Increases" Here!

    I have 2 Capital One Platinum cards. Both approved for CLI of $500 to $1500 each. CLI was requested by me online.

    jemannie July 25th, 2014, 02:32 PM Go to last post
    XB2013

    Re: Report Your "Credit limit Increases" Here!

    Ch7 Dis 02/13...

    Cap1= 02/13-$300..09/13-$500..04/14-$2000
    Cfna = 04/13-$900..10/13-$1200..04/14-$2000
    Wlmt= 02/13-denied..06/13-denied..03/14-$900(sp)..06/14-$1700(before

    XB2013 July 25th, 2014, 12:22 PM Go to last post
    Nuovocapitolo

    Re: Report Your "Credit limit Increases" Here!

    Sunoco from $700 to $1,500
    Lowe's from $800 to $1,800
    Best Buy from $2,000 to $3,200

    Score around low 700's

    Credit

    Nuovocapitolo July 24th, 2014, 04:05 PM Go to last post
  • Recent Headlines and Articles

    ChrisB

    Don’t let these Self Employment Questions Stop you

    If you find yourself seriously considering self employment, you will soon realize that there are many questions to answer. While some are sure to be more challenging than others, none should stop you dead in your tracks.... read more
    ChrisB July 28th, 2014, 07:50 AM
    ChrisB

    How to Buy a Reliable Used Car, Not a Lemon

    Many people shy away from buying a used car because they are afraid of what they will end up with. While there may be a few lemons out there, if you take the right approach you know you can save... read more
    ChrisB July 25th, 2014, 08:37 AM
    ChrisB

    Does Vacation have to Cost that Much?

    As summer wears on and you begin to dream of days spent on the beach, it may not be long before you are planning a trip. While a vacation may be something you want, it may not be something you can afford.... read more
    ChrisB July 24th, 2014, 07:46 AM
    ChrisB

    What to do with your Credit Card Debt

    What do you see when you look at your credit card statement? While there is nothing better than a “0” next to your balance, for many people this is not realistic at the present time. Instead, they realize they have some... read more
    ChrisB July 22nd, 2014, 07:57 AM
    ChrisB

    Reasons to Use LinkedIn to Find your Next Job

    Like some, you may be out of work and willing to take on any job. Or much the same as others, you could find yourself looking to make a change to a career that better suits your skills.

    While... read more
    ChrisB July 21st, 2014, 08:04 AM
    ChrisB

    Benefits of Renting out of College

    As a new college graduate, the world is at your fingertips. It will not be long before you are taking your first step into the working world, realizing that your future is bright.

    One of the... read more
    ChrisB July 18th, 2014, 07:59 AM
    ChrisB

    Estate Sale Shopping Tips for Success

    Are you the type of person who enjoys jumping from one estate sale to another? No matter if you have been going to these sales for many years or are just now getting started, you know... read more
    ChrisB July 16th, 2014, 07:47 AM

 

 

 

Credit Cards | Finance Social Network | Credit Card Reviews | Markets
About Us | FG on the Web | Sitemap | Privacy | Terms | Contact


Copyright © 2014 Finance Globe. All rights reserved.