A 76‑year‑old Franklin County, Ohio woman thought she’d hit the jackpot when an unexpected caller told her she’d won $3 million in a Publishers Clearing House sweepstakes. All she needed to do, he said, was pay taxes on her winnings, according to The Columbus Dispatch.
So, she mailed more than $89,000 in “tax” checks to an Arkansas address before realizing the prize was a scam. Detectives traced the money to a 68-year-old man in Little Rock, Arkansas who was arrested on a felony‑theft warrant and remains in an Arkansas jail waiting to be extradited.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
Scams like this are increasingly common because the scammers are smart and know how to convince you that they’re from legitimate companies. They often use pressure or fear tactics to keep you on the hook.
But understanding how these scams work — and how to protect yourself — can be key as fraud attempts grow.
How do scams like this work?
Investigators say the fraudster posed as a sweepstakes employee, phoning the victim in March and insisting the windfall couldn’t be released until upfront taxes were paid — an approach straight out of the classic prize‑scam playbook.
Scammers often add pressure by invoking trusted names — like Publishers Clearing House — claiming official oversight and urging victims to “act now” before the offer expires, says the Federal Trade Commission (FTC). They may direct targets to wire money, send gift cards or — in this case — mail checks to out‑of‑state addresses that are hard to trace.
Con‑artists may also spoof caller ID so the number looks like it comes from Publishers Clearing House or even a government agency. Or, they might mail official‑looking letters, complete with fake seals or phony tax forms to build trust.
Once the victim pays the first fee, the scammer often invents new hurdles — customs duties, courier charges or even “anti‑terror compliance” certifications to milk the victim for even more payments.
The FTC notes three tell‑tale signs of prize and sweepstake scams:
- Real prizes never require payment
- Odds of winning can’t be boosted by a fee
- No legitimate contest needs your banking or Social Security numbers.
Fraud like this is increasingly common, especially for seniors, who may be lonely, less tech-savvy or less aware of new scam techniques.
According to the FTC, Americans over the age of 70 lose more per scam than any other age range. But young people fall for scams more often, so people of all ages need to know how to spot these scams.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
How to avoid falling victim to prize or sweepstake scams
According to the FTC, genuine sweepstakes are free and random. Any request for cash, gift cards, cryptocurrency or personal data is a red flag. If a stranger contacts you about a prize, look the company up yourself — using a verified phone number or website — to verify the company is real. Never rely on numbers or links that the caller or an email provides.
If you’ve paid already, the quicker you act, the better. Report the transaction to your bank or card issuer, file a complaint at ReportFraud.ftc.gov and contact your state attorney general. If the scammer contacted you by mail, notify the U.S. Postal Inspection Service. The faster you report the scam, the more likely you are to get some of your funds back.
If personal data was shared, visit IdentityTheft.gov for recovery steps. Spreading the word to friends and relatives — especially older family members — can prevent the next would‑be winner from becoming the next victim.
A final reminder: Unsolicited prize calls, emails or brochures in the mail are almost always too good to be true. The safest response is to hang up, delete or recycle — before the only thing you’re left holding is an empty checkbook.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
