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BBB issues warning about prize scam

Posted at 6:31 PM, Jan 18, 2017
and last updated 2017-01-18 22:28:15-05

INDIANAPOLIS -- The Better Business Bureau has a warning out about prize scams circulating once again in Central Indiana.

The postcards typically say you have an “unclaimed reward” and give you a 1-800 number to call, but when you reach an agent, they tell you about processing fees needed to get your prize.

Lonza Robertson, an 80-year-old east side resident, told Call 6 Investigates he fell for it.

Robertson gave the scammers his credit card information, but was able to cancel the payment before it went through.

“I had to get a new credit card,” said Robertson.  

Robertson said the agent told him to get his prize he would have to pay processing fees, which kept increasing the longer he talked to him.

“I eventually hung up,” said Robertson.

He contacted the Better Business Bureau who is warning people about this not so sophisticated scam.

“It’s pretty easy to do,” said Tim Maniscalo, president and CEO of the BBB of Central Indiana. “You’re going to get some people who fall for it, because hey, it’s my lucky day and I’ve just won a great prize.”

Maniscalo believes the company behind the postcard Robertson received is the same one banned in Iowa from marketing to consumers.

“Scammers typically work in a particular area, and once they get found out, they’ll go someplace else,” said Maniscalo. “Our goal is to make people in this area aware of it so nobody falls for it.”

Lonza Robertson hopes to raise awareness about the prize scams so that others don’t have to go through the hassle.

“I want people to know there’s someone out there that’s got something that’s not right,” said Robertson.

Call 6 Investigates called the 1-800 number on the postcard and asked to speak with a supervisor about consumer concerns.

The agent offered us a prize, and eventually hung up on RTV6.

Call 6 Investigates reached out to the Indiana Attorney General’s office to see if they plan to take action against the scammers, but the agency has yet to issue a response.

HOW TO AVOID BECOMING A PRIZE SCAM VICTIM:

  • You shouldn’t have to pay money to get money. Legitimate sweepstakes will not require prepayment of processing fees before a prize is awarded.
  • Be cautious of claims that guarantee your winnings.  Read the fine print in the letter or email.
  • Report scams to the Indiana Attorney General.
  • When in doubt, contact your BBB Serving Central Indiana. If there is ever a question about the legitimacy of a Sweepstakes offer, call BBB and we will be happy to look into the offer with you.
  • Report sweepstakes scams on BBB Scam Tracker HERE. You can also use BBB Scam Tracker to see what scams are happening in your area.