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Scam Alert

Phony Sweepstakes

People think, "It's just 40 bucks — I'll take a chance"

And yet in just a few weeks before this ruse was shut down by the U.S. Postal Inspection Service, at least 4,000 older people nationwide took the bait — about 10 percent of recipients — mailing back a $39.95 "fee" to claim the nonexistent cars or cash. In the legitimate direct-mail business, "a 5 percent response rate is considered very good," says the agency's Patricia Armstrong. Some people even paid $20 extra for supposed overnight delivery of their checks.

"Victims are being snookered in by the low dollar amount," she tells the AARP Bulletin. "They may suspect it's a scam, but figure, 'It's only $40. I spend that on coffee.' But that just makes some bad guys very rich, because so many other people are thinking the same thing."

So here's the real deal:

  • Legitimate contests never require you to send in upfront fees. Scam contests always do.
  • A "what can I lose?" mind-set puts you on sucker lists that scammers share with one another. Your presence on those lists assures you'll be hit by future come-ons by mail, phone or the Internet.
  • Scammers will sometimes send you a fake check with the letter, saying it's part of the prize, with the rest to come later when you pay the fee. You're urged to deposit it right away. The idea is that you'll feel flush and send in the fee. But the check's always worthless, so put it where in belongs — in the trash can. 


Sid Kirchheimer is the author of Scam-Proof Your Life, published by AARP Books/Sterling.

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