• Never pay to play. It’s illegal for a company to require you to buy something or pay a fee in order to win or claim a prize.

  • Buying something doesn’t improve your chances of winning. It’s illegal for a company to even suggest that your chances will be better if you make a purchase.

  • Don’t believe that you have to give the company money for taxes on your prize. It’s up to you to declare your prize winnings when you file your income taxes.

  • Be cautious about emails for contests and sweepstakes. Many unsolicited emails are fraudulent.

  • Guard your credit card and bank account numbers. No legitimate sweepstakes company will ask for this information. Never give your social security number to a sweepstakes operator unless you have carefully checked it out with the Better Business Bureau or your state or local consumer protection agency.

  • Be on guard for imposters. Some con artists use company names that are identical or very similar to well-known, legitimate sweepstakes operators. Tell them that you’ll get back to them and contact the real companies to ask if there is any connection.

  • Be wary of offers to send you an “advance” on your “winnings.” Some con artists use this ploy to build trust and get money from your bank. They send you a check for part of your “winnings,” instructing you to deposit it and then wire payment to them for taxes, bonding, or some other phony purpose. The bank tells you the check has cleared because the normal time has passed to be notified that checks have bounced. After you wire the money, the check that you deposited finally bounces because it turned out to be an elaborate fake. Now the crooks have your payment, and you’re left owing your bank the amount that you withdrew.

  • Get all the details. Legitimate sweepstakes companies will tell you exactly how the contest works, including the odds of winning, the value of the prizes, the date that the contest ends, and how you can find out who won.

  • Be especially cautious about foreign sweepstakes companies. Many fraudulent sweepstakes companies that target U.S. consumers are located in Canada or other countries, which makes it much more difficult for law enforcement agencies to pursue them.

 

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