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Consumer Handbook: Sweepstakes Scams Cost Victims More During The Pandemic

Better Business Bureau

Sweepstakes and lottery scams resulted in higher financial losses during the COVID-19 pandemic compared to the previous three years, particularly for older people, according to new research from Better Business Bureau. 

The research is an update of BBB’s 2018 in-depth investigative study, “Sweepstakes, Lottery and Prize Scams: A Better Business Bureau Study of How ‘Winners’ Lose Millions Through an Evolving Fraud.” Since the study’s publication, there has been a 16% decrease in complaints to the Federal Trade Commission and the FBI’s Internet Crime Complaint Center. However, financial losses reported to all three agencies rose dramatically in 2020 with the COVID-19 pandemic, with FTC logging an increase of more than 35% in reported dollar losses. 

The updated research highlights how these scams work and the importance of educating consumers, particularly those who may be susceptible to a specific scam. People over the age of 55 continue to be the primary target of sweepstakes, lottery, and prize scams, representing 72% of fraud reports for this type of scam received by BBB Scam Tracker during the last three years.

The confinement and isolation many older people experienced during COVID-19 may have helped fuel the increase in losses. Other factors that may contribute to some older people’s particular vulnerability include mental decline and relative financial stability. Confinement during the pandemic, along with powerful social influence tactics, help lottery scammers sell the scam. 

BBB warns consumers never to pay money to claim a prize. If anyone asks for money before delivering a prize, it is likely a scam. True lotteries or sweepstakes don’t ask for money. If someone wants money for taxes, themselves, or a third party, they are most likely crooks. You have to enter to win. To win a lottery, you must buy a lottery ticket. To win a sweepstakes or prize, you must have entered first. If you can’t remember doing so, that’s a red flag.

 

Cape Girardeau native Whitney Quick is the former Regional Director of Better Business Bureau in Cape Girardeau, MO. She joined the Cape Chamber as Vice President of Programs and Leadership Development in May 2023. Quick is a graduate of Cape Girardeau Central High School and Southeast Missouri University where she majored in public relations.