LAS VEGAS (AP) - State and federal authorities have shut down a Nevada-based business that authorities say scammed people into paying $20 for a valueless newsletter with deceptive mailers suggesting the recipient won a sweepstakes prize.
The Federal Trade Commission said the fraudulent "sweepstakes" operation violated federal law by sending personalized mail to millions of people nationwide, telling them they won a substantial cash prize even though no prizes were awarded.
A lawyer for Las Vegas-based National Prize Information Group Corp. and company owner John Rincon denied allegations of deceptive trade practices and promised to fight lawsuits filed in Las Vegas by the FTC and the Nevada state attorney general.
"Customers received a real and valuable service," attorney Sheldon Lustigman said Friday from his office in New York. He said Rincon offered money back to dissatisfied customers.
U.S. District Judge Robert Jones in Las Vegas on Thursday halted operations and froze the assets and business records of Rincon and his businesses: National Prize Information Group Corp., Las Vegas Actionable Award Program, Prize Search Express and National Bureau of Prize Information.
The Nevada attorney general's consumer protection bureau also filed suit in state court Wednesday, alleging false, misleading and deceptive advertising, and false representations in a transaction.
The FTC said personalized mailers lured people into sending money with discriptions of "uncollected" but "confirmed" prizes, "unawarded money" that had been "located and documented" and "authorization to disburse" a "guaranteed cash/prize amount."
Some people who paid $20 received a newsletter drawn from public sources listing sweepstakes and instructions on how to enter, said Jo Ann Gibbs, a senior deputy Nevada state attorney general.
Small print in advertisements referred to the newsletter, state and federal investigators said, but not that recipients had not won a prize.
Some people who sent money received more mailers soliciting more money and suggesting they had won other prizes, the Federal Trade Commission said in a statement.
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This all goes to show that if a sweepstakes asks you to send money to them, they are probably a fraud. Please be careful out there. If you ever have any concerns about the sweepstakes we have at www.myfreesweeps.com, please let us know and we will investigate.
Saturday, October 21, 2006
Thursday, October 12, 2006
What is a sweepstake?
A sweepstakes is technically a lottery in which the prize is financed through the tickets sold. In the United States the word has become associated with promotions where prizes are given away for free. In other words, they specifically do not require a purchase to enter (these are called prize draws in the United Kingdom). Sweepstakes sponsors are very careful to dis-associate themselves from any suggestion that players must pay to enter, as this would bring them into conflict with lottery laws. The popularity of the term sweepstakes may derive from the Irish Sweepstakes, which was very popular throughout the world from the 1930s to the 1980s.
Sweepstakes typically involve aggressive enticements to enter a contest for fantastically large prizes; there should be no cost to the entrant to enter for the prize, with the exception of possibly being placed on a promotional mailing list. Winners should also not be required to pay a fee of any type to receive their prize.
Among the commonly known sweepstakes in the United States are the American Family Publishers Sweepstakes, Publisher's Clearing House Sweepstakes and Reader's Digest Sweepstakes, each of which strongly persuade entrants to purchase magazine subscriptions by placing stickers on contest entry cardstock, while promising multi-million dollar winners who will be "announced on TV". The American Family Publishers sweepstakes has traditionally used paid advertisements during NBC's The Tonight Show to announce its grand prize winners (for many years, its celebrity spokesman was Ed McMahon).
Sweepstakes are also used by fast-food restaurants to boost business. One of the most popular has been the McDonald's Monopoly promotion. Soda companies also run sweepstakes, including the Pepsi Billion Dollar Sweepstakes game and the Pepsi Stuff game allowing one to accumulate points and purchase promotional items (which offered a Harrier fighter jet for a certain number of points, much lower than the cost of the plane, and which an entrant unsuccessfully sued Pepsi for when he amassed them [1]).
Because of the perceived deceptive nature of sweepstakes, they are heavily regulated. The US, Canada, and individual US states all have laws covering sweepstakes, resulting in special rules depending on where the entrant lives. Notably, Canada and several European countries require entrants to solve a mathematical puzzle, making it a contest of skill, in order to overcome requirements that would classify sweepstakes as a form of gambling.
Sweepstakes must therefore be carefully planned to not only comply with local laws but curtail forms of entrant fraud and abuse. Before home computers were popular, a common method of entry was a mailed index card with the entrant's name and address. Massive computer-printed entries made a new requirement of "hand-printed". Laser printers able to mimic ink pen writing are also a problem for sponsors. Entering sweepstakes by mail is still very popular, although many also enter online as well. From time to time, mistaken sweepstakes design leads to more winning entries than intended, and publicity fallout for the sponsoring brand can be immense.
There is also a tradition of office sweepstakes, which usually take place over large sporting events (Melbourne Cup, Grand National, World Cup etc), where you put in a stake into the pot, and get a horse/team drawn out of the hat. The winner then takes the pot.
Sweepstakes typically involve aggressive enticements to enter a contest for fantastically large prizes; there should be no cost to the entrant to enter for the prize, with the exception of possibly being placed on a promotional mailing list. Winners should also not be required to pay a fee of any type to receive their prize.
Among the commonly known sweepstakes in the United States are the American Family Publishers Sweepstakes, Publisher's Clearing House Sweepstakes and Reader's Digest Sweepstakes, each of which strongly persuade entrants to purchase magazine subscriptions by placing stickers on contest entry cardstock, while promising multi-million dollar winners who will be "announced on TV". The American Family Publishers sweepstakes has traditionally used paid advertisements during NBC's The Tonight Show to announce its grand prize winners (for many years, its celebrity spokesman was Ed McMahon).
Sweepstakes are also used by fast-food restaurants to boost business. One of the most popular has been the McDonald's Monopoly promotion. Soda companies also run sweepstakes, including the Pepsi Billion Dollar Sweepstakes game and the Pepsi Stuff game allowing one to accumulate points and purchase promotional items (which offered a Harrier fighter jet for a certain number of points, much lower than the cost of the plane, and which an entrant unsuccessfully sued Pepsi for when he amassed them [1]).
Because of the perceived deceptive nature of sweepstakes, they are heavily regulated. The US, Canada, and individual US states all have laws covering sweepstakes, resulting in special rules depending on where the entrant lives. Notably, Canada and several European countries require entrants to solve a mathematical puzzle, making it a contest of skill, in order to overcome requirements that would classify sweepstakes as a form of gambling.
Sweepstakes must therefore be carefully planned to not only comply with local laws but curtail forms of entrant fraud and abuse. Before home computers were popular, a common method of entry was a mailed index card with the entrant's name and address. Massive computer-printed entries made a new requirement of "hand-printed". Laser printers able to mimic ink pen writing are also a problem for sponsors. Entering sweepstakes by mail is still very popular, although many also enter online as well. From time to time, mistaken sweepstakes design leads to more winning entries than intended, and publicity fallout for the sponsoring brand can be immense.
There is also a tradition of office sweepstakes, which usually take place over large sporting events (Melbourne Cup, Grand National, World Cup etc), where you put in a stake into the pot, and get a horse/team drawn out of the hat. The winner then takes the pot.
Monday, October 09, 2006
MyFreeSweeps: Protecting yourself from fraud
There are many types of email fraud that are sent with the purpose of stealing your personal and financial information. Many fraudulent emails are disguised as legitimate email from sources that you would normally trust. The email may entice you to provide various types of personal and confidential information.
There have been several alerts in the media to warn people against email scams. We wanted to update you on these scams and assure you that we will do what we can to help you avoid compromising any of your financial information.
One type of online scam is called Phishing This scam uses authentic looking emails and web sites to trick recipients into giving personal financial information such as account numbers, credit card numbers, social security numbers, user names, and passwords. The messages sometimes ask the recipients to follow a link and enter the information for verification purposes.
The messages sometimes appear to be from reputable financial institutions. One such email even claimed to be from the FDIC. The email was fraudulent.
One scam email read: "It has come to our attention that your account information needs to be updated...please follow the link below and renew your account information."
We also have been notified of a phishing scam attempting to gain financial information from people with PayPal accounts used to pay for mainly Ebay purchases. The email claims that the user's account may have been accessed by a third party. The user is asked to click on a link included in the email to reinstate their account, which they say has been temporarily limited. The link is actually to a ghost site that looks like PayPal’s site. Once the user is at the fake site, they are asked to verify personal and financial information. When they submit the form with their personal information, it is sent to the people committing the fraud. If you receive emails similar to this one, do not reply and never give any personal or financial information.
Remember, Reputable companies will NEVER email you to request personal or financial information. Please be advised to never provide any financial information via email and be wary of any such request. If you receive an email such as this, please notify the corresponding company immediately of the occurrence.
Be aware of these scams and know that companies are constantly working to protect your information. We encourage you to always be careful with how you handle your personal and financial identity. Remember that reputable sweepstakes will never ask for you to enter in any financial inforamtion. If you ever see a sweepstake that you are weary of let us know at www.myfreesweeps.com and we will investigate the matter and remove if necessary.
There have been several alerts in the media to warn people against email scams. We wanted to update you on these scams and assure you that we will do what we can to help you avoid compromising any of your financial information.
One type of online scam is called Phishing This scam uses authentic looking emails and web sites to trick recipients into giving personal financial information such as account numbers, credit card numbers, social security numbers, user names, and passwords. The messages sometimes ask the recipients to follow a link and enter the information for verification purposes.
The messages sometimes appear to be from reputable financial institutions. One such email even claimed to be from the FDIC. The email was fraudulent.
One scam email read: "It has come to our attention that your account information needs to be updated...please follow the link below and renew your account information."
We also have been notified of a phishing scam attempting to gain financial information from people with PayPal accounts used to pay for mainly Ebay purchases. The email claims that the user's account may have been accessed by a third party. The user is asked to click on a link included in the email to reinstate their account, which they say has been temporarily limited. The link is actually to a ghost site that looks like PayPal’s site. Once the user is at the fake site, they are asked to verify personal and financial information. When they submit the form with their personal information, it is sent to the people committing the fraud. If you receive emails similar to this one, do not reply and never give any personal or financial information.
Remember, Reputable companies will NEVER email you to request personal or financial information. Please be advised to never provide any financial information via email and be wary of any such request. If you receive an email such as this, please notify the corresponding company immediately of the occurrence.
Be aware of these scams and know that companies are constantly working to protect your information. We encourage you to always be careful with how you handle your personal and financial identity. Remember that reputable sweepstakes will never ask for you to enter in any financial inforamtion. If you ever see a sweepstake that you are weary of let us know at www.myfreesweeps.com and we will investigate the matter and remove if necessary.
Wednesday, October 04, 2006
Central Florida News 13, Generation to Generation
Central Florida News 13, Generation to Generation: "We've all opened the mailbox and found, were one of the lucky ones! Just pay a small fee and millions could be ours. But beware, last year, lottery and sweepstakes fraud cost folks over age 50 more than forty million dollars.
Sid Kircheimer, who tries to help people spot the fraud said, 'They really know how to manipulate people's emotions and they say 'you have to do nothing except reply and get your fortune.'
Jim Harris knows all too well about getting hooked by sweepstakes promising big bucks.'That's probably one of the things that hooks you more than anything is the fact that it's so much money, and the possibility that there is truth in all of that. However, it turned out that there was no truth in nothing.' Harris said.
Harris was promised more than a million dollars, if he would deposit three checks worth $3,000 each, and then wire that same amount to a location in Canada to help cover insurance fees.
Kircheimer says, 'Most sweepstakes scams involve trying to work in a processing fee or insurance fee. It's never okay to pay any money if you win a legitimate prize.'
Harris knows all to well what happens when the scam works,'The checks were counterfeit, the balance had to be made-up at the bank by my own funds.'
The ideal solution to protect yourself is to NOT use any of your personal email addresses to enter and NEVER, NEVER send money to claim your winnings.
Sid Kircheimer, who tries to help people spot the fraud said, 'They really know how to manipulate people's emotions and they say 'you have to do nothing except reply and get your fortune.'
Jim Harris knows all too well about getting hooked by sweepstakes promising big bucks.'That's probably one of the things that hooks you more than anything is the fact that it's so much money, and the possibility that there is truth in all of that. However, it turned out that there was no truth in nothing.' Harris said.
Harris was promised more than a million dollars, if he would deposit three checks worth $3,000 each, and then wire that same amount to a location in Canada to help cover insurance fees.
Kircheimer says, 'Most sweepstakes scams involve trying to work in a processing fee or insurance fee. It's never okay to pay any money if you win a legitimate prize.'
Harris knows all to well what happens when the scam works,'The checks were counterfeit, the balance had to be made-up at the bank by my own funds.'
The ideal solution to protect yourself is to NOT use any of your personal email addresses to enter and NEVER, NEVER send money to claim your winnings.
Monday, October 02, 2006
October 2, 2006
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About Contests and Sweepstakes
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Showtime Free Preview Sweepstakes (Oct 10)
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Showtime Free Preview Sweepstakes
Mark your calendars! Watch Showtime during the Free Preview, October 6-9, and look for the four different trip codes. Any trip code can be entered at any...
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Monkey Mansion Tree House (Jan 15)
Open Season and Kid Cuisine
Win a Daniels Wood Land "Monkey Mansion" tree house, including installation (ARV$ 14,000).
Open to residents of the U.S., D.C. and U.S. Territories, excluding Puerto Rico. Enter...
Refresh Your Bedroom Sweepstakes (Oct 2)
Refresh Your Bedroom Sweepstakes
One grand prize winner will get a new bedroom suite, a high-quality sheet and comforter set, and a design consultation from the Home Mavens. Five friends of...
ClubMom "A Day at the Beach" sweepstakes(Oct 15)
Win A Day At The Beach (plus 4 Other Days And 4 Nights) From Clubmom. Enter For Free!
Home Depot Sweepstakes
Sweepstakes
Win a $10,000 “Ultimate Home Renovation.” Entrants must purchase a Delta faucet and submit an essay describing how they would use the money toward home renovations. Entries are submitted with proofs-of-purchase...
TheCelebrityCafe.com $100 Gift Certificate (Sep 30)
TheCelebrityCafe.com $100 Gift Certificate
Win a $100 Amazon Gift Certificate to buy whatever you like. Hourly entry amd open to everyone. Ends Sep 30 at midnight.
...
DQ Blizzard Fan Club (Oct 31)
DQ Blizzard Fan Club :: Join The Blizzard Fan Club
Open to US/CAn 13+; ends Oct 31. The maximum number of friends you may refer is five (5). The maximum number...
James Blunt in Beverly Hills (Oct 15)
Hilton Sweep Page Info
Trip for two to see James Blunt perform at the Beverly Hilton Hotel in Beverly Hills, California on November 21, 2006. Trip consists of round-trip, coach class...
NicoDerm CQ Cruise (Oct 2)
NicoDerm CQ
Win a 7-day Caribbean cruise for two aboard Carnival Cruise Lines on the Shape and Men's Fitness Mind/Body Cruise, December 2-9, 2006 (includes airfare).
Submit short story (50 words or...
Pepto Max (Dec 31) daily
Pepto Max
Write an original story of 1,000 characters or fewer explaining how Pepto Max saved your day. Submit your story along with a photo that depicts your story and illustrates...
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