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Prize scams remain very lucrative for fraudsters

Fraud.org is out with its Top 10 Scams of 2021, and complaints about fake prizes, bogus sweepstakes, and supposedly “free” gifts top the list.

“This is a very expensive scam for its victims,” said John Breyault, a vice president at the National Consumers League which runs Fraud.org. “Victims collectively reported losing $255 million to these scams, and we know that that’s really just the tip of the iceberg.”

While anyone can be bamboozled by a clever con artist, this is a big problem for those 55 and older, Breyault told me.

“The scammers are definitely getting more sophisticated. They have more information about us than ever,” Breyault said. “With all of the data that’s out there about you, it’s really easy for the scammers to come up with a really effective list that allows them to target the people who are most likely to respond.”

Most prize, sweepstakes and lottery scams start with a phone call or on the web – email or social media. But the fraudsters are quickly moving to text messages because people tend to respond to them.

Remember, you can’t win a contest, lottery, or sweepstakes that you didn’t enter. And if you’re asked for any money, for any reason – it’s a scam.

More Info: Tips to Protect Yourself From Sweepstakes and Lottery Scams

If you get a call, text, email, or social media message and don’t know what to do, call the AARP Fraud Watch Network Helpline at 877-908-3360 before you provide an unknown caller with information or money. You do not need to be an AARP member to use this free service.

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