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BEWARE OF SWEEPSTAKES SCAMS
The DC Department of Insurance, Securities and Banking (DISB) cautions residents to be on guard against sweepstakes scams.
How are the Scams Perpetrated?
Sweepstakes scams are fraudulent schemes designed to trick individuals into giving away money, personal information or valuable items under the pretense of participating in or having won a sweepstakes event, lottery or inheritance. Scammers can impersonate District of Columbia or other government officials, attorneys or other contest sponsors. In 2023, there were 3,440 reports of these types of scams in the District, with an estimated loss to consumers of approximately $1,245,000.
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Scamming Consumers
- Scammers may reach out via letter or phone call congratulating you on having won a large sum of money or a free luxury vacation.
- Scammers typically ask the consumer to pay a processing or other type of fee to collect their winnings.
- Legitimate sweepstakes authorities never require winners to pay handling charges, service fees, taxes or other upfront charges to receive a prize.
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Avoid Sweepstakes Scams
- Be mindful of communications congratulating you for winning sweepstakes or prizes that you do not recall entering.
- Verify the authenticity of a sweepstakes event by contacting DISB or the Office of the Attorney General for DC.
- Never share financial or personal information with potential scammers.
- Never pay upfront fees in order to receive a prize you have supposedly already won.
- Report scams to DISB or relevant local or federal authorities.
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REPORT FRAUD
If you believe you have been the victim of a sweepstakes scam or other financial fraud, contact the DISB Enforcement and Consumer Protection Division at 202.727.8000. You may also file a report with the Federal Trade Commission (FTC) at reportfraud.ftc.gov or call the FTC Consumer Response Center at 877.382.4357.
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DISB Mission
Our mission is three-fold: (1) cultivate a regulatory environment that protects consumers and attracts and retains financial services firms to the District; (2) empower and educate residents on financial matters; and (3) provide financing for District small businesses. |
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