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Some promoters offer sweepstakes to profit by fraudulent means. Sweepstakes promoting legitimate products should not be confused with product promotions carefully crafted to look like prize give­aways. Some companies use the promise of valuable prizes as lures to sell overpriced and poor quality merchandise and service. Here are a few signs you may not be dealing with a legitimate sweepstakes or contest offer:

Upfront Costs

One of the most important things to remember with any contest or sweepstakes is, if you have won a prize you do not have to pay a fee or buy anything to enter or improve your chances of winning. This includes paying registration fees, taxes, shipping costs, processing or claim fees to get your prize. There is also no reason to provide anyone with your bank information such as your account number or credit card information to enter a promotion.

Wiring Money, Prepaid Cards, or Loading Money on a Stored Value Card

Scammers have evolved their schemes by requiring "prize winners" to wire money to an agent to insure delivery of the prize. Or they may claim you need to put funds on a stored value or prepaid card, such as MoneyPak or GreenDot Card, and send them the card number or reloading information to cover fees, like insurance. Don't fall for it. If you wire the money or provide them with the card information, it's the same as sending cash. Once it's gone, you can't trace it or get it back. The same also goes for checks and money orders.

Big Name Imitations or Government Agency Imposters

Several fraudulent schemers have posed as representatives of major sweepstakes, such as Publishers Clearing House or Reader's Digest. You should always look for signs of a scam, for example did you even enter the sweepstakes? If you are in doubt, contact the real company to see if you have actually won.


Recently, scammers have been so brazen as to pose as government agencies, such as the Federal Trade Commission ("FTC"), or using official-sounding names like "National Consumer Protection Agency" or "National Prize Bureau" claiming you have won a federally supervised lottery or sweepstakes. The FTC does not oversee sweepstakes, and no federal agency or sweepstakes company will ask for money to claim a prize.


Business Consumer Alliance offers these tips relating to sweepstakes, and other contests:

Carefully read the promotion's literature and instructions carefully and follow directions for entering. Your entry may be disqualified if you have not followed directions exactly.

Be sure you meet eligibility requirements (such as age).

Read correspondence carefully if it tells you you're a winner. You could have won only pennies. Or you may find you have to attend a presentation to be eligible for a prize.

Think carefully before you attend a sales meeting solely to win or claim a prize. Your chances of winning a truly valuable prize are slim. Use your interest in finding out about the offer being pro­moted to deter­mine whether or not you attend. (If you do attend and are per­suaded to buy, take a few days to get addi­tional information before you sign a contract or make a deposit.)

Keep in mind that you will be responsible for taxes on the prize if you win. Do you really want the prize?

If you win, would you be willing to release your name and photo to the promoter if required? Be cautious about accepting a check you receive in the mail as a prize. It may be a fake check scam. (Federal law prohibits the use of fake checks in connection with sweepstakes promotions unless they include a statement that they are non-negotiable and have no cash value.) Do not endorse and return a check that asks for information such as a social security or credit card number on the reverse or elsewhere.

Don't be deceived by letters that look official or urgent, such as an envelope that resembles a government check, or a name on the correspondence that sounds like the name of an official organization. (Federal law prohibits the use of any seal, name or term that implies a federal government connection, approval, or endorsement.)

You should be aware that, besides the prohibitions previously mentioned, federal law also prohibits: the representation that you are a winner unless you have actually won a prize; that you must place an order to enter a sweepstakes; or that you must make a purchase in order to receive future sweepstakes mailings. Some states, such as California, require sweepstakes operators to make clear and conspicuous disclosure that no purchase or payment of any kind is necessary to enter or win. Sweepstakes sponsors are also prohibited from representing that you've been "specially selected" (that is, that you're a winner, finalist, in or tied for first place, or in some other limited group of persons who have a greater chance of winning a prize) unless that representation is true. Nevertheless, you should also be aware that a dishonest promoter may not abide by the law regarding these prohibitions

Check out the promoter or offer with Business Consumer Alliance. Be aware, though, that many questionable prize promotion companies do not stay in one place long enough to estab­lish a track record and that an absence of complaints does not guarantee that the offer is legitimate.


If you have a problem with a sweepstakes or prize promotion after participating, first contact the company sponsoring the promotion. If you are not satisfied, you may file a complaint with Business Consumer Alliance. Or if you have received an offer by phone, email, mail, or over the internet for a sweepstakes that is questionable, report the information to Business Consumer Alliance.


Remember, your best tipoff to a scam is the requirement that you pay something up front.