$2,100,000 National Magazine Exchange Sweepstakes Scam

Just when people are finally getting used to avoiding online scams, such as the famous beneficiary E-mails from Nigerian banks, new scams are starting to fill our mailboxes at home.

The latest scam is the National Magazine Exchange's Strike It Rich $2,100,000 sweepstakes in the form of a letter stating the following:

"We are trying to reach you regarding your $2,100,000.00 prize entry ID# #########. Your reply is needed by March 5, 2009 to be eligible for prize offerings." It goes on to say no purchase is necessary, with a bunch of bogus fine print on the back of the letter.

Please be aware that this is indeed a scam. After receiving this letter today, knowing full-well it was a scam, I went online to see what I could learn about it. As it turns out, this scam is about a year old, with traces of the same letter circulating since May of 2008. It is unknown how this company receives your mailing information.

During my search, I came upon a forum for people who enter sweepstakes for a living. Several members tried calling that number, because they couldn't remember if they had entered a contest like that or not.

If you try to enter this contest, the person on the other end of the phone asks to verify you by the prize entry ID number in the letter, as well as a checking account number, in order to verify they fact that you have a credit card. No, this isn't supposed to make sense.

Once they receive your account number, they try to talk you into buying a magazine subscription. While "no purchase is necessary," the caller is brow-beat until either he or she gives in, in hopes of a better chance of winning the $2,100,000, or until they stand their ground long enough that the person on the other end gets bored.

Next, the caller will be thanked for their time and told that he or she will be entered into the sweepstakes for free - that is until a month later when mystery charges appear on the bank statement of the caller.

So, what kind of person still falls for scams like these anyway? One lady on the sweepstakes forum said she fell for this particular scam hook, line, and sinker. She was a 24 year old single mom with three kids, desperate for some good luck. After entering several sweepstakes, she lost track of the legit ones from the scams.

After receiving a letter about the Strike It Rich sweepstakes in the mail, she called the 800 number (1-800-207-8171 is one of about 20 numbers according to the Better Business Bureau) and handed over her checking account number, but declined the magazine subscription. On her next bank statement, she learned that a charge from National Magazine Exchange had bounced, causing an overdraft fee in her account, bringing her to a negative balance. She learned her lesson the hard way.

According to the Better Business Bureau, National Magazine Exchange is an actual company, located in Clearwater, FL, and has been in business since 1985. National Magazine Exchange currently has a C- rating with the Bureau. In the last 36 months, the BBB has received a staggering 523 complaints ranging from advertising and contract issues, to sales practice and billing complaints.

If you ever receive notices in the mail that sound too good to be true, the Better Business Bureau is always a good place to start. Hopefully as word gets around, fewer people will fall for scams like these. It's unfortunate how a company that feeds on the hopes and dreams of disadvantaged citizens has remained around as long as it has.