Don't get caught in sweepstakes traps

December 29, 11:55 AMNY Consumer Affairs ExaminerAsa Aarons

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A New Year is fast approaching—and so are seasonal sweepstakes. Before you respond to any of the offers you'll likely to receive by mail, phone and email, there are a few things to know.

The winners you see in those big national sweepstakes promotions are real. They're also very, very lucky, because the odds of winning even legitimate contests are extremely low. How low? One current offer from Publishers Clearing House lists the odds at 2.5 billion to one.

But you don't have to make a purchase to enter, so the most you'll lose if you respond to an offer from an organization like PCH is your time and the price of postage to mail the entry.

The bigger concerns are bogus, look-alike sweepstakes, which prey on the enthusiasm generated by the well-known contests. The offers use names that sound suspiciously like the big national sweepstakes. They may even have similar looking websites or near identical advertisements.

The goal is to confuse consumers, and persuade them to pay to play. The contests may charge entry fees or require participants to make a purchase, even though that's illegal in some locations. Others impose questionable advance fees for insurance, taxes or shipping.

The most important thing to remember: it's a scam if you have to pay any fee for any reason to enter a sweepstakes.

In recent years, con artists have started sending out official looking bank checks to the alleged winners. The checks are likely to be several thousand dollars higher than the amount the person reportedly won. When a consumer calls to confirm the check or ask about the discrepancy, the company will magnanimously tell the person to deposit the full amount in his bank account and simply refund the difference.

But the checks are only masterful counterfeits. Weeks after you deposit it in your bank, long after the money becomes available for withdrawal, the forgery will be uncovered. The bank  will debit your account the full amount—and you’ll be required to reimburse the bank for the money you already spent, including the alleged excess you already returned to the thieves running the scheme.