The confinement and isolation of older people during the Covid-19 pandemic may have enabled a dramatic increase in money lost to lottery and sweepstakes scams, according to the Better Business Bureau.
The Federal Trade Commission logged an increase of more than 35% in reported dollar losses in 2020, the BBB stated in a press release. As of June 9, victims have reported 108 such scams this year to BBB Metro New York.
People over age 55 are the primary targets and lost the most money. Older adults lost an average of $978, according to BBB Scam Tracker data, while victims from age 18 to 54 lost an average of $279.
The BBB said older people might be more vulnerable because of mental decline and financial stability.
Sometimes the fraudsters pretend to represent an actual sweepstakes, such as Publishers Clearing House.
Victims are told that they must pay taxes or fees before they can claim their winnings. They are urged to buy gift cards, make a wire transfer or even send cash in the mail.
The demand for money is the clue that something is amiss. True lotteries and sweepstakes don”™t ask for money. And if you don”™t remember buying a lottery ticket or entering a sweepstakes, the purported prize is probably phony.
The BBB recommends calling a sweepstakes company directly or checking with the lottery to verify winnings. People can also use the internet to verify the company, name and phone number of the person who contacted them.
