Sweepstakes Scams With a New Twist

Sweepstakes scams have been around for a long time. Scammers contact you saying you have won something, usually a fabulous trip or money. Recently, the scammers have come up with a new variation on the old fraud except they now use e-mail and text, plus phone calls. Instead of trying to get you to pay taxes or other fees in advance to collect the nonexistent prize, the scammers will ask for personal information so that they can validate you and set up the payout. They will ask for banking information, your Social Security number, and even claim that they will file your "prize" with the IRS to take care of the taxes. Just like the old sweepstakes scams, this is another form of identity theft. However, instead of quickly depleting your bank account, the scammers can play a long game. They’ll write small checks on your account to see whether you notice the fraudulent activity. If you don't, they'll continue to use the information to obtain credit cards and lines of credit in your name. With the loans open, the scammers will spend every dime of the available balance.

How to stay safe: As with any sweepstakes scam, remember that if it seems too good to be true, it probably is. If you get a call, e-mail or text from someone claiming that you’ve won a huge prize, the safest bet is to ignore it. And as a reminder, never provide any personal information to an unsolicited request.