How to avoid falling for the newest sweepstakes scams

 How to avoid getting scammed by the latest sweepstakes 


NEW YORK, (WABC) -- Sweepstakes and lottery scams have boomed since the pandemic. The thieves have increased their skill set as more people are spending more time online. Nina Pineda, 7 On Your Side's Nina Pineda, explains how you can avoid falling for this trap.


Scammers who prey on lottery winners and sweepstakes participants are giving their brand a new look, making it a little more sophisticated. The FTC reported last year that there were triple-digit rip-offs. Nearly $170 million was taken. Consumers were not able to win cash or prizes. Instead, they lost an average of $1,000 each.

According to The Better Business Bureau, sweepstakes fraud has increased by 35% over the past three years.


Scammers are most interested in people over 55.


A scammer will reach out to you via phone, email, or social networking notification, offering congratulations on winning a large contest.


However, there is a catch. You will need to pay a fee and taxes to claim your prize.


Scammers will often make use of familiar company names. Honda is giving away a free CRV in one case. You will need to pay hundreds of dollars for shipping.


Social media offers a $1,000 Amazon Gift Card. However, there is no prize. Also, you will need to provide tons of personal data, which could make you a target for identity thieves.


The main takeaway:

1) Never accept a prize. It's a sign that the scammer is trying to trick you. Scammers will ask you to wire money, or buy gift cards. The code is on the back of each card. Sometimes they'll even talk to you on the phone while you buy them.


2) Report fraud to the FTC/BBB. Let your bank know if you've compromised your bank account data.


ALSO READ: 7 On Your Side: Things to Know if You're Traveling Abroad This Summer. How to Avoid Lottery Email Fraud

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