Seniors Should Say No to Con Artists Claiming to Be
with FTC, Promising Sweepstakes Prize
Scammers just want you to send money for the
“taxes” and “insurance”
Oct. 17, 2008 – Senior citizens are most often the
target of con artists and the Federal Trade Commission has just issued a
warning that scammers, claiming to work for the Federal Trade Commission
are calling consumers and claiming that they have won a lottery or
sweepstakes. They just need to send money to pay for taxes and
insurance. Do not fall for it.
As the nation’s consumer protection agency, the FTC
never collects money directly from consumers. But the public may be
fooled, because by using Internet technology, con artists can make it
appear that they are calling from Washington, DC, where the FTC is
headquartered. The FTC’s name may even be displayed on consumers’ caller
ID machines.
All the public has to do, according to the con
artists’ pitch, is pay the taxes and insurance on their “winnings.” The
caller asks that consumers wire money or send a check for an amount
between $1,000 and $10,000. In reality, there is no prize, and the
scammers disappear with the consumers’ money.
Real sweepstakes don’t require you to send money to
claim a prize. To learn more about avoiding this type of scam, read
below.
What You Should Do When Scammers Exploit the
FTC’s Name, Promise Phony Prizes
“Hi, I’m calling from the Federal Trade
Commission to tell you that you have won $250,000…”
Someone who claims to work for the Federal Trade
Commission calls to inform you that you have won a lottery or
sweepstakes. To receive the prize, all you have to do is pay the taxes
and insurance. The caller asks you to wire money or send a check for an
amount between $1,000 and $10,000. What should you do? Don’t send money
or account information, and immediately report the incident to the real
Federal Trade Commission (FTC).
The FTC is the nation’s consumer protection agency.
It investigates fraud and provides free information, but it never
collects money directly from consumers. FTC staffers don’t have any
involvement with this sweepstakes scam, but they do want you to avoid
it.
The caller might suggest that the FTC is
supervising the giveaway. He or she might even use the name of a real
FTC employee. Your Caller ID might display the Federal Trade
Commission’s name or a Washington, DC area code. Don’t be surprised if
you receive repeated calls and follow-up faxes.
No matter how convincing the impersonation, you
should never send money to claim a prize. No FTC employee will ever call
to ask you to send money. Legitimate sweepstakes companies won’t either.
Many older consumers and their families have reported this kind of scam,
but anyone could be contacted.
Keep from falling for the lure of sweepstakes scams
by taking a few precautions:
● Don’t pay to collect sweepstakes winnings. If
you have to pay to collect your winnings, you haven’t won anything.
Legitimate sweepstakes don’t require you to pay “insurance,” “taxes,” or
“shipping and handling charges” to collect your prize.
● Hold on to your money. Scammers pressure
people to wire money through commercial money transfer companies like
Western Union because wiring money is the same as sending cash. If you
discover you’ve been scammed, the money’s gone, and there’s very little
chance of recovery. Likewise, resist any push to send a check or money
order by overnight delivery or courier. Con artists recommend these
services, so they can get your money before you realize you’ve been
cheated.
● Look-alikes aren’t the real thing. It’s
illegal for any promoter to lie about an affiliation with — or an
endorsement by — a government agency or any other well-known
organization. Disreputable companies sometimes use a variation of an
official or nationally recognized name to try to confuse you and give
you confidence in their offers. Insurance companies, including Lloyd’s
of London, do not insure delivery of sweepstakes winnings.
● Phone numbers can deceive. Some con artists
use Internet technology to call you. It allows them to disguise their
area code: although it may look like they’re calling from Washington,
DC, or your local area, they could be calling from anywhere in the
world.
● File a complaint with the FTC. If you receive
a call from someone who claims to be a representative of the government
trying to arrange for you to collect supposed sweepstakes winnings, file
a complaint at
ftc.gov or call 1-877-FTC-HELP. Your complaint will be most useful
to enforcement officials if you include the date and time of the call,
the name or phone number of the organization that called you, the FTC
employee name that was used, the prize amount, the amount of money
requested, the payment method, and any other details.
The FTC works for the consumer to prevent
fraudulent, deceptive, and unfair business practices in the marketplace
and to provide information to help consumers spot, stop, and avoid them.
To file a
complaint or to get
free information on consumer issues, visit
ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY:
1-866-653-4261. The FTC enters consumer complaints into the
Consumer Sentinel Network, a secure online database and
investigative tool used by hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
