June 10, 2021
Rockford, IL – June 10, 2021 – Sweepstakes and lottery scams resulted in higher financial losses during the COVID-19 pandemic compared to the previous three years, 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). 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.