What You Need to Know About Sweepstakes Fraud

Unfortunately, the world is full of people who want nothing more than to take advantage of others. Even worse, modern technology allows just about anyone to produce authentic-looking documents for the purpose of defrauding individuals out of their hard-earned cash. Sweepstakes fraud is one such example, and involves the advertisement of fake sweepstakes prizes in order to collect entry fees.

Most people do not realize that legitimate sweepstakes never charge entry fees. If you've ever looked under the fine print of the sweepstakes run by McDonald's or Coca-Cola, you'll see the words, "No Purchase Necessary". Sweepstakes are meant to be a way to reward frequent customers, and not a method with which companies can earn extra cash. That, in a word, is fraud.

Most likely, you receive solicitations for sweepstakes on a regular basis. While you shouldn't assume that all of them are fraudulent, you should know that the vast majority of them are. Follow these steps to identify fraudulent sweepstakes advertisements in an effort to arm yourself against sweepstakes fraud.

All About Sweepstakes Fraud: Read the Entire Advertisement

As consumers, we have learned to place convenience ahead of common sense. We sign loan applications and rental agreements without bothering to read the entire document. Don't make the same mistake with sweepstakes advertisements. Instead, read the entire advertisement - several times, if you are considering entering - and make sure that you understand the language. Vague or misleading phrases are an indication of sweepstakes fraud.

All About Sweepstakes Fraud: Does It Cost Anything?

Some versions of sweepstakes fraud will require you to send an "entry fee", while others require that you purchase a product or service in order to be eligible. Both are red flags that should alert you to the possibility of sweepstakes fraud.

All About Sweepstakes Fraud: Calling Non-Toll-Free Numbers

Many sweepstakes advertisements require you to call a phone number in order to confirm your entry. Unless the number provided is an 800 or 866 number, you will be charged by the minute. The people who answer will do their best to keep you on the line, asking ridiculous questions and placing you on hold. Don't make the phone call unless it says, "Toll Free".

All About Sweepstakes Fraud: Study Prize Amounts

Sweepstakes advertisements can be deceiving. Just because it says, "$5,000 in prizes" doesn't mean that anyone earns over $1.00, but that the total prizes awarded equal $5,000. Further, a $1,000 prize might actually be a $1,000 gift certificate to Chili's restaurants or $1,000 worth of Randall's coupons. Be sure that you understand the exact prizes awarded before entering a sweepstakes. If the prize information is not given in the solicitation, it is likely sweepstakes fraud.

If you suspect that you are being solicited by sweepstakes fraud, take the necessary steps to report the abuse. You can contact the local Better Business Bureau, call the National Fraud Information hotline (800.976.7060) or even call your police department. The local post office should be aware of the sweepstakes fraud, as well.