Scammers Posing As FTC Officials Target Texans

Hucksters posing as Federal Trade Commission (FTC) officials--and promising thousands of dollars in sweepstakes prizes--are now targeting Texas consumers.

Scam artists behind the scheme make initial contact with consumers by telephone and then send an official-seeming letter with instructions on how to claim the prize, according to Texas Attorney General Greg Abbott.

The letter, which has a phony FTC logo, is designed to convince consumers that government officials are contacting them because a sweepstakes company holding their prize couldn't find them.

"An agent from the Federal Trade Commission will direct you in receiving your award and inform you of security issues that you should be aware of," the letter states. "US Sweepstakes and Fulfillment Co. has awarded you $450,000 for the second place award. As of June, 2009 they had sent out notice with no response which is the reason why our Agent Owen Sanders has taken charge and is your case manager. He will assist you in activating an insurance policy for delivery."

Consumers are instructed to immediately call a Washington, D.C. phone number to claim their prize.

"Calls to that phone number are re-directed to an unknown area, where the person on the other end of the phone then demands payment for insurance from the callers to collect their prize," Abbott said, adding consumer are told they won't receive their prize money until they pay for insurance. "In scams of this sort, the scammers' goal is to get the callers' "insurance money."

Abbot says this scheme has several red-flags, including:

• The FTC never collects money from consumers and its employees have no involvement with delivering sweepstakes prizes;

• In Texas, consumers do not need to buy anything in order to enter a sweepstakes;

• It is illegal in Texas for companies holding sweepstakes to charge fees.

Texans who receive a call from anyone claiming to be with the FTC or any government organization--and promising to arrange delivery of sweepstakes winnings--should contact Abbott's office at (800) 252-8011 or the FTC at (877) FTC-HELP.