One of the most common scams is the "prize pitch". Consumers are told they have been specially selected to win a prize, or have been awarded one of three or two of five prizes. These prizes usually include cash or a vehicle. You must purchase a product and pay in advance to receive your prize. These products may include "coin collections", personalized pen sets, etc. The products are generally cheap or overpriced, but may sound valuable over the phone.
Remember, in a legitimate contest you do not have to purchase a product to qualify for a prize.
You may also encounter the "sweepstakes scam". After entering a fake sweepstakes contest in the mail, you will receive a call within two to four weeks from a fraudulent telemarketer. This person will usually identify themselves as a lawyer, judge, customs agent or other official. They will represent themselves as an agent for a particular company. You will be told that you have won a large cash award, but money must be sent up front for taxes, etc.
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