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Lottery and gift card scams are on the rise. Here’s what you need to know

November 5, 2018 by Blog Posts

by Susan Tompor

Just when you think the red flags relating to a scam should be pretty clear, you hear more troubling reports when it comes to sweepstakes and gift cards.

All the buzz about the Mega Millions jackpot – and the one winning ticket sold in South Carolina that captured a prize worth nearly $1.6 billion – could trigger even more related scams.

What’s a big sign of a sweepstakes scam?

The catch is usually this: You must send money for taxes – or buy some products –  before receiving that incredible sweepstakes or lottery prize.

The end result: You only lose money, you don’t win anything. 

Nearly a half-million people reported some sort of lottery- or sweepstakes-related fraud to enforcement agencies in the United States and Canada in the last three years. Reported losses totaled $117 million in 2017, according to a Better Business Bureau report.

The actual number of victims and losses is likely much larger, as many victims are too embarrassed to report it, according to experts. 

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