How to avoid sweepstakes frauds

If a prize package seems too good to be true, it probably is

By Michael Pramik, Ohio Public Employees Retirement System

Feb. 29, 2024 – If you ever receive a call, text or email telling you that you’ve won a huge sum of money or boatload of prizes, beware: It’s likely to be a scam.

The Federal Trade Commission warns that scammers are contacting individuals claiming they’ve won a substantial sum of money from Publishers Clearing House via a multi-state lottery. They instruct you to call a designated number and press 1 for further details. Failure to comply supposedly results in forfeiting the prize money.

If you opt to press 1, expect to hear a fabricated tale along these lines: You’ve supposedly won millions (which you haven’t), your winnings are supposedly stashed at the Federal Reserve Bank of New York (they’re not), and you’re required to pay a fee to claim your non-existent prize (you absolutely shouldn’t). Regardless of the variation of this narrative, it’s undoubtedly a scam.

OPERS has no partnership with Publishers Clearing House or any other sweepstakes. You should never give any third party access to your OPERS account, by sharing your OPERS ID or Social Security number, or by any other means.

Here are several versions of Publishers Clearing House scams to beware of:

• Fraudulent checks purportedly for sweepstakes winnings mailed to your address: The PCH check scam operates by persuading individuals to deposit a counterfeit check and transfer a portion of the funds back to the scammers.
• Deceptive phone calls demanding payment to receive your prize: This scheme starts with a phone call notifying you of winning a cash reward, a new vehicle, or a trip. To claim the prize, you’re instructed to remit money to cover processing fees or other expenses.
• Solicitations to divulge financial details to a supposed “claims agent”: This tactic creates the impression that a third-party professional is overseeing your prize allocation.
• Coercion to open new bank accounts: Scammers may request victims to open fresh accounts to access prizes. However, this requires “verifying” your identity by disclosing bank account numbers or other sensitive personal data, enabling scammers to hijack the account.
• Facebook messages from impostors posing as PCH employees: Exploiting social media platforms such as Facebook, scammers execute PCH scams by duplicating images and content from the authentic PCH Prize Patrol Facebook account. Then they target PCH page followers, falsely informing them of their supposed winnings. Eventually, the perpetrators demand upfront payments, a share of the winnings or sensitive financial information.

Here are some vital points to remember to avoid the Publishers Clearing House scam and others like it:

• Legitimate prizes come without a cost. If you’re asked to pay for your prize by any means and under any guise—be it for “taxes,” “shipping and handling charges,” or “processing fees”—it’s a sure sign of a scam. Cease communication and walk away.
• Scammers employ urgency tactics. They insist it’s a time-sensitive offer and strive to pressure you into quick action. Their aim is to prevent you from contemplating the situation critically. If anyone tries to rush you into making payments, halt. Remember, rushing payments is a common tactic of scammers.
• Scammers adopt names that mimic legitimate entities. However, no authentic sweepstakes company will demand money to claim a prize or ask you for personal financial information. To verify legitimacy, directly contact the genuine company. Ensure you use contact details you’ve independently sourced—avoid relying on information provided by the caller.