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Business - Scam Alert

Sunday, Aug. 09, 2009

Scam Alert: Sweepstakes just a swindle

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THE SCAM: Jamaican sweepstakes

HOW IT WORKS: The Federal Trade Commission has issued a warning about fraudulent telemarketers based in Jamaica who are calling U.S. residents and telling them they've won a sweepstakes or foreign lottery. These con artists identify themselves as lawyers, customs officials or lottery representatives. They tell potential victims they've won vacations, cars or large sums of money. To claim these prices, all people need to do is pay fees for shipping, insurance, customs duties and taxes.

WHAT'S AT STAKE: Your money.

HOW TO BEAT IT: Don't believe it. If you have to pay to collect your winnings, you're not a winner. Legitimate contests don't have such fees. Also, federal law prohibits U.S. residents from playing foreign lotteries -- for good reason. Don't let tight personal finances cloud your judgment and allow a con artist to make your situation worse. If called, just hang up.

For a look at past scams, go to www.modbee.com/business/scam.