Frauds, Scams, and Slams: Prizes, Sweepstakes, and Gift Fraud

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Frauds, Scams, and Slams Prizes, Sweepstakes,
and Gift Fraud

• Prepared by Jan Park PH.D
• Gerontology Specialist
• Oklahoma Cooperative Extension Service
• April 2002

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Prize Offers

• You have won a fabulous prize
• Read the fine print

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Written Sweepstakes Solicitations

• Letters and Postcards announcing you won
• Claim the prize
• Send money or buy a product
• Worthless prizes

CONGRATSYOUVE WON!!!!!
To WIN Please fill out the following information
send 50 ________ ___________ _________
_
___________ _________
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(No Transcript)
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Deceptive Mail Prevention and Enforcement Act
Prohibits

• False winners
• Requiring additional purchase
• Fake checks
• Implication of false affiliations or endorsements

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Telemarketer Solicitations

• Beware of needing to claim a prize in 48 hours

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Telemarketer Sales Rule

• Odds of Winning
• No fees or purchases necessary

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Skill Contests

• Not based on chance to win
• Games, puzzles, and quizzes

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What Can Consumers do to Protect Against
Fraudulent Skills Contest Promoters?

• Terms and conditions of contest
• How many rounds must be completed?
• Time frame to win
• Name of sponsor
• Address of Sponsor

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Dont Get on a Sucker List

• Once scammed always scammed
• Legitimate agencies or organizations never
  charge
  

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Legitimate Promoters

• Reputable marketers or organizations
• You win by chance

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Be Careful What YouSign Up For

• Sweepstakes and drawings
• Events

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How To Protect Yourself

• Federal Trade Commissions Recommendations
• Just say No
• Pay no fees and buy nothing
• Pay no shipping or taxes
• Be suspicious of bulk mail winners
• Never send money overnight or by courier

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How To Protect Yourself

• You cant win a contest you didnt enter
• Read mail solicitations carefully
• Beware not all 800 toll-free numbers are free
• Never give bank account of credit card
  information to promoter
  
• Check with local Better Business Bureau

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Do You Want to Stop Getting Junk Mail or
Telemarketing Calls?

• Contact Direct Marketing Association
• Do not call list do not mail list opt out of
  e-mail list
  

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Federal Trade Commission

• Prevent fraud and deception
• Enforces consumer protection laws
• Free information