Wealth Planning Insights
Fraud Alert: Be Wary of Sweepstakes Scams
Jeffrey A. Speight, CFP®, October 2022
“Congratulations! You’ve won the grand prize.” How would you react to a call or an email saying this?
Fraudsters relentlessly try to separate people from their money. Retirees (especially those living alone) are the most vulnerable. This article addresses common schemes shared by clients and how to respond. Take and share these with ones you love who may be susceptible to these scams.
“Easy money” schemes
Did you even enter? If you don’t remember entering a lottery or sweepstakes, you probably didn’t. Don’t second guess yourself. Be skeptical.
Do not send them anything of value. If you really win a big prize, you do not need to prepay taxes, pay a processing fee, or send them gift cards.
No personal data. Do not provide your social security number or date of birth over the phone. Fraudsters may also ask for bank account information under the pretense of getting the “prize money” to you safely. Do not give it to them! This same information can also be used to steal money OUT of your bank account.
Money mule scams. This is where someone is used to launder and transfer stolen money. If someone sends you money and then asks you to send it to someone else, don't walk, run away.
Legitimate companies. Scammers often spoof legitimate companies like Publishers Clearing House (PCH). PCH representatives will not call or email you if you win. When in doubt, go to the company’s official website or ask a trusted contact to do so on your behalf. It may save you a small fortune.
Keep the family informed. It is best that you tell your family or trusted contact about these alleged windfalls as soon as possible. Thieves discourage people from telling anyone so they can “surprise” their family later. Don’t keep it a secret.
“You owe them” schemes
According to AARP, in addition to fake prize scams, government impostor scams are on the rise. These scams involve people who claim to be from the IRS, Social Security, Medicare or the FBI. The government will not call you and ask for personal information they already have. You do not need to wire money, send a check, or mail a gift card to avoid arrest or having your account suspended.
The Federal Trade Commission (FTC) website (https://consumer.ftc.gov/features/scam-alerts) is a good resource to learn about current scams.
Feel free to call your Tanglewood advisor if you or someone you love receives a suspicious communication about an alleged sweepstakes prize.