DAYTON, OHIO, June 30, 2010 - More scams are hitting the Miami Valley. This time, it’s sweepstakes scams being promoted by companies using multiple names. Within the past few weeks, your Better Business Bureau has been contacted by several people who have received letters saying they’ve won prize money in sweepstakes.
One of these companies is sending letters stating the recipients are shopper’s sweepstakes winners. Allegedly, winners were randomly selected by a computer system to win big money, but to claim the winnings, they have to cash the enclosed checks, which are written for $3,885 to $4,455.87, and wire a specific amount, typically around $3,000, through Western Union to a tax agent to cover a variety of fees or taxes. Two of the letters claim to be associated with the National Lotto Co-Operation Sweepstakes Lottery and the winners’ selections were supposedly based on their shopping at retailers, such as Wal-Mart, COSCO, Sam’s Club, K-Mart and more.
In fact, one letter informed the recipient she was a winner of an international sweepstakes of the sum of $250,000. She was instructed to deposit the $3,885 check enclosed to pay the “applicable bond fees” of $2,990 to a tax agent. This document includes an address in London, England and a phone number with an Ontario, Canada area code.
The company behind these mailings is called Sitcom Management, Inc., allegedly located in Miamisburg. However, the address provided by the company is not a valid Miamisburg address according to the USPS system. The address given is actually a field on Lyons Rd. in Miamisburg. The company also uses several other names, including Westburne Services, Inc. and Affiliated Management, Inc. The contact information provided on letters list multiple addresses both in the U.S. and Canada with incorrect zip codes and foreign phone numbers.
The winning notifications from this company even say the company is BBB Accredited, which isn’t the case. Sitcom currently holds an F rating with your BBB, its lowest rating. Reasons for this F rating include concerns with the industry in which this business operates. And, after numerous attempts by your BBB, the company failed to provide background information, including information to determine how long it’s been operating.
Another company is preying on local consumers using similar tactics. Sweepstakes Reporter, a Kansas company, also uses a variety of names. A Piqua man received winner notification from this company using the name of American Sweepstakes Publishers, claiming the company had a $1,254,204 award for him. He was to complete the form and enclose a one-time $12 processing fee. The mailing even included A Consumer’s Guide to Direct Mail Sweepstakes offering tips for avoiding sweepstakes scams. The publication goes as far as encouraging recipients to check companies out with your BBB.
However, if a recipient did follow the publication’s advice, he or she would discover the company also has an F rating with your BBB. This rating is due to concerns with the industry in which the business operates and 12 complaints filed against the business in the last 36 months, six of which were closed in the last year. These complaints concerned advertising, contract, billing or collection, sales practice, delivery, service and refund or exchange issues.
BBB experience has found Sweepstakes Reporter sends out letters with prize winning information for a fee of approximately $12. For the $12 fee, a consumer receives a report that consists of information on sweepstakes conducted by corporate organizations not affiliated with Sweepstakes Reporter and information on how to enter those sweepstakes.
If you receive a sweepstakes notification, red flags should go up if it:
· Is difficult to read because of grammatical errors and misspellings.
· Claims you’ve won millions of dollars and requests payment for taxes or associated fees before you can receive the winnings. Remember, when you win, you pay taxes after, not before, getting your money.
· Originates from foreign countries, such as Australia, Germany or Canada.
· Is for a sweepstakes you’ve never entered. Sweepstakes generally require completing entries or purchasing tickets.
· Requires you to buy something, which is prohibited by U.S. law.
John North, BBB president and CEO, says, “It’s very common now for sweepstakes notifications to be accompanied by checks. These checks even use names and bank account numbers of reputable businesses to make them look more authentic. But, don’t let the dollar signs guide your decisions. The checks are usually counterfeit.” He continues, “If you cash a phony check, you could be liable for any funds withdrawn and additional fees charged by your financial institution. You could also be prosecuted. Before cashing the check, verify its legitimacy with the financial institution listed on it. If you deposit it, wait for your financial institution to collect the funds before you withdraw money.”
The bottomline is if you receive a sweepstakes notification, throw it away or forward it to your local postmaster. They may appear to be legitimate, but many are simply ploys to get your money. Once you respond, scammers may get more persistent and aggressive. Plus, you could end up on a sucker list and open yourself up to other solicitations. Some victims receive loads of phony lottery and sweepstakes notifications daily. If you receive notification you’re a sweepstakes prize winner, visit www.bbb.org or call (937) 222-5825 or (800) 776-5301 to check it out before you become the next victim.
About Your BBB Serving Dayton and the Miami Valley
Your BBB, the leader in advancing marketplace trust, is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB Accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. Your BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM, and educational information on topics affecting marketplace trust. To further promote trust, your BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 125 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than four million local and national businesses and charities. Please visit www.bbb.org for more information about your BBB.
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