“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 Federal Trade Commission (FTC) at www.ftccomplaintassistant.gov.
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, and they 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 bonafide 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, 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. Nevertheless, many consumers and their families have sent money and lost it before recognizing this as a scam and reporting it.
Taking a few precautions can help you minimize your risk of falling for the lure of sweepstakes scams:
The FTC works 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 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. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. 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.