How to Avoid Sweepstakes Fraud

Thousands of companies push their fraudulent "sweepstakes" into the mailboxes of unsuspecting consumers. Protect yourself by learning to identify the signs of fraud.

Difficulty: Easy

Instructions

1. Read the sweepstakes information three times over, especially the small print.

2. Make sure you are not required to buy anything to enter the sweepstakes.

3. Make sure you are not signing up for an unwanted service just by entering.

4. Make sure you are not asked to call a 900 number to claim a prize. You will be charged for this call, and you will probably be put on hold for a long time.

5. Study the rules carefully. They should be easy to find and understand.

6. Make sure the rules include the following: closing dates, prize amounts, eligibility requirements, odds of winning and an address to request a list of winners.

7. Make sure the rules give detailed descriptions of the prizes. (A $5,000 prize may be $5,000 in coupons, for example.)

8. Verify a company's legitimacy by contacting the Better Business Bureau in the company's area. Realize that some companies are too slick to be tracked.

9. If you suspect fraud, report it to your local postmaster.

10. Report fraud to the Better Business Bureau or the National Fraud Information Center at [phone]. You can also call your local police. Other help can be found from the Direct Marketing Association (DMAConsumers.org).

Tips & Warnings

• Watch out for wording such as, "You may have already won," "prize delivery instructions," and similar phrases. Though sometimes legitimate, they are very misleading.
• Avoid being deceived by fake handwritten notes that give mass mailings the appearance of being personal.
• Never pay money to win a prize - not taxes, phone charges, shipping and handling, processing fees or anything else. Genuine sweepstakes are not allowed to charge you 1 cent - ever. If you have to pay, it is an illegal lottery, not a sweepstakes.
• Never give credit card or bank information.

[Meanstreak]

on 11/10/2006 I recieved a cashiers check in the mail just today. I called the bank and it was indeed a fraudulant cashier's check. The main thing that got me was the last statement you made, "why wouldn't they just send you an actual check less any fees."

on 8/8/2006 Your may receive a cashiers check to cover service charges and all applicable fees. Be sure to verify with the bank the check is drawn on, that the check is legitimate. Go online and look up the customer service numbers and have the cashiers check verified. Cashiers checks can be counterfeit too. It will look real and feel real, why wouldn't they just send you an actual check less any fees.