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Florida Warns of Pay-to-Claim Sweepstakes Scams

June 21, 2005
Florida Attorney General Charlie Crist is warning of a scam that requires "winners" of a lottery or sweepstakes to submit payments in order to claim their prize. The scam lures Florida citizens, particularly elderly residents, into paying unnecessary "processing" or "premium" fees in order to collect the "free" prize.

Lottery/Sweepstakes Scams • Fraudsters Masquerading as Well Known Companies • Yahoo! Sues Fake Lottery Scammers • Canadian Lottery Scam Resurfaces • Consumers Continue To Fall For Phony Lottery Scam • Postal Inspectors Seize Billions in Fake Checks • Lottery Scam Victim: "No One Cares" • Consumers Falling For Lottery Scams In Increasing Numbers • FTC: Older Americans Hit Hard by Consumer fraud, ID Theft • Florida Warns of Pay-to-Claim Sweepstakes Scams • Texas Sues Sweepstakes Operator • Iowa Busts Sweepstakes Scheme • Crackdowns in 9 states • Feds seek court order • Feds sue Australian scam operators • American Home Products • Reader's Digest Pays $6 Million to Settle Sweepstakes Complaints --- • Atlantic Lottery • Australian Lottery • European International Lotto • How to spot a scam

The Attorney General's Office recognized the growing trend after receiving numerous complaints from consumers across the state. The solicitation typically comes as an official-looking document that promises thousands or even millions of dollars in cash.

The scam stresses the need for immediate action, often requesting verification of personal information or some other action on the part of the recipient. The document also states that a small fee, usually between $10 and $20, must be submitted in order to process the claim.

"Many people get so caught up in the excitement of winning that they don't realize these con artists are lining their pockets with money rightfully belonging to the consumer," said Crist. "In addition, consumers could become victims of identity theft by revealing personal information. Floridians should immediately be suspicious of any supposed prize that requires them to pay a fee in order to claim their winnings."

The companies solicit donations so aggressively that consumers will receive several notifications per week, or even per day. A response to the notifications generates even more offers, perpetuating a cycle of empty promises and absent prizes. Consumers should note that soliciting fees to collect a "free prize" is illegal, and they should not send money to companies engaged in this practice.

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