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Lottery and Sweepstakes Scams

This living topic provides essential information on how to identify and avoid lottery and sweepstakes scams. It covers the tax implications of winning large lottery prizes and highlights the risks of falling victim to scammers who exploit the allure of big winnings. Key points include recognizing tell-tale signs of scams, such as unsolicited messages claiming you've won a lottery you never entered, requests for personal information, or demands for upfront fees. The content also offers practical advice on how to protect sensitive information and avoid common pitfalls. The overarching theme is to educate readers on staying vigilant and protecting themselves from fraud.

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What is the ‘gold bar scam?’

It’s the latest flavor of an old scheme

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The “gold bar scam” is a fast-growing fraud in which criminals convince victims that their money is at risk and must be converted into gold for safekeeping.

Scammers often impersonate government officials, banks or tech-support representatives and may send couriers directly to victims’ homes to collect gold bars.

Authorities warn that legitimate government agencies and financial institutions will never tell consumers to buy gold or other precious metals to protect their sa...

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Watch out for Powerball Jackpot scams

Like the swallows returning to Capistrano, it was easy to predict that scammers would try to cash in on the awareness and hype surrounding the record Powerball jackpot. Officials confirmed Thursday that three winning tickets had been sold.

Cue the scammers. It wasn't long before this message was making the rounds on Facebook:

“I WASNT GOING TO PUT THIS ON FB BUT I COULDNT HOLD IT AND I STILL CANT BELIEVE THIS!!! I WON $1.5 BILLION. MY FAMILY HAS BEEN CRYING FOR HOURS.”

First of all, there were three winning tickets for a $1.6 billion jackpot, so no one individual won $1.5 billion. Any crying was purely crocodile tears.

The post continues:

“I am picking 10 random people who share this photo and giving them $10,000 each. CALL ME CRAZY BUT GOD is GOOD! FOLLOW ME ON INSTRAGRAM.”

We've seen this one before

Okay, it's “instagram,” not “instragram.” But the bigger point is this is exactly the same scam that was hot a couple of weeks ago, when a similar poster claimed that Facebook founder Mark Zuckerberg, who made news when he said he and his wife were donating 99% of their stock to charity, was picking 10 Facebook users at random to share in the riches. To qualify, one supposedly had to “Like” or “Share” something.

While this might qualify more as a hoax than a scam, the potential for dangerous fraud exists if you get sucked into claims of free Powerball money. Ahead of the drawing, Ohio Attorney General Mike DeWine issued this warning to be on guard against creative schemers.

“If you receive a call saying you’ve won the lottery, it’s almost always a scam,” Attorney General DeWine said in the alert. “Con artists play on what’s in the news, so we’re warning people to be wary of scams as the Powerball jackpot grows.”

Average loss of $5,000

Over the last four weeks as the jackpot grew, DeWine said his office's Consumer Protection Section had received more than two dozen complaints involving sweepstakes or prize scams. The average reported loss, he said, was about $5,000.

DeWine says consumers should hang up on any callers who say they have won lottery money. That's not how it works.

In most cases, the scammers who say their victim has won the lottery require them to send several thousand dollars – always in a non-traceable manner – in order to receive their millions. Again, that's not how any lottery works.

If you happen to get one of these calls, hang up and report it to your local police department and state attorney general.