TBO.com - TBO is Tampa Bay Online

Highlands Today

Sweepstakes scam costs local resident dearly

ADVERTISEMENT

By BRAD DICKERSON

Highlands Today

Published: March 13, 2010

SEBRING - James Matthews received thousands of letters in 2009 declaring him a sweepstakes winner of millions of dollars.

The 85-year-old Sebring man actually won nothing. Instead, he lost almost $20,000.

"They claim that you were picked over 200-and-something thousand people ... and you're 100 percent guaranteed to win," Matthews said Thursday. "It got so that I was getting, at one time, 50 documents a day ... from different (organizations) wanting money.

"A lot of them say, 'You're a winner,' right up at the top."

Matthews was not a winner. Each of the letters said that he would have to pay a certain fee before he'd receive his winnings. That amount could range from $20 to $250.

To look at the letters, one would think they were legitimate. One, which claimed to be from the Data Distribution Bureau in Las Vegas, had a professional-looking logo at the very top of the document.

This confirmed notification stated it was not a sweepstakes entry or contest solicitation. The group claimed to be an independent research organization that was authorized to disclose "significant cash/prize payouts offered by corporate sponsors and then inform certain individuals of interest through our selection process."

Matthews was told his name was selected from over 267,857 others to receive over $3.4 million.

The catch? A $20 processing fee was required before the transaction could be complete.

Matthews said another letter informed him he'd won $7.5 million from an outfit in Jamaica, and the U.S. government had worked out a deal where he'd only have to pay income tax on 1.5 percent of the winnings.

He admits that portion made the letter, "look appealing." The stipulation was he had to send an initial payment of $250. Later, he said he got another letter saying he had to give more money before the bank could release the millions.

"It went on and on like that until they got over $8,000 out of me and I haven't received a cent," Matthews said.

In addition to the money he was being scammed out of, Matthews also had other money woes stemming from problems with his bank accounts. Several checks he wrote to pay bills were bouncing, and he finally had to cash in some stocks to help get him financially stable again.

That process took three months.

And that $8,000 in question? Matthews said he received a call just the other day from a person claiming to be with the FBI. The caller said they had recovered his money and wanted to send it to him.

Again, there was a catch. The caller needed to collect $750 from Matthews before the funds could be released.

Matthews hung up the phone.

The Federal Trade Commission has several tips for consumers to remember before falling victim to one of these "it's your lucky day" scams. They include:

• Legitimate sweepstakes don't require you to pay or buy something to enter or improve your chances of winning, or to pay "taxes" or "shipping and handling charges" to get your prize. If you have to pay to receive your "prize," it's not a prize at all.

• It's highly unlikely that you've won a "big" prize if your notification was mailed by bulk rate. Check the postmark on the envelope or postcard. Also be suspicious of telemarketers who say you've won a contest you can't remember entering.

• Fraudulent promoters might instruct you to send a check or money order by overnight delivery or courier to enter a contest or claim your "prize." This is a favorite ploy for con artists because it lets them take your money fast, before you realize you've been cheated.

ARE YOU A VICTIM?

To file a complaint with the Federal Trade Commission, visit www.ftc.gov or call toll free, 877-382-4357. Consumers who believe they have been victimized by fraudulent promotional offers also should contact their local postmaster or the U.S. Postal Inspection Service at 888-877-7644, online at www.uspsoig.gov or by mail at U.S. Postal Inspection Service, Office of Inspector General, Operations Support Group, 222 S. Riverside Plaza, Suite 1250, Chicago, IL 60606-6100.

Highlands Today reporter Brad Dickerson can be reached at 863-386-5838 or bdickerson@highlandstoday.com

Share this:

Loading Comments...

ADVERTISEMENT