St. Louis, Mo., June 10, 2021 – 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® (BBB). 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.
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 (FTC), the FBI’s Internet Crime Complaint Center (IC3) and the Canadian Anti-Fraud Centre (CAFC). 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.
According to Steve Baker, BBB International Investigations Specialist, “This updated research highlights how these scams work and the importance of educating older adults and other people who may be susceptible to these scams. Because these scammers are so good at what they do, anyone could be a victim.”
