Posing as legitimate representatives from companies such as Publishers Clearinghouse or American Family Publishers, these fraudulent telemarketers will inform you that you have won a prize. You will then be instructed to contact an 800 number where you will be informed that to claim the prize, you must pay the shipping and handling or taxes, which often amounts to hundreds of dollars. In some instances, you may be asked to provide a credit card number to verify your eligibility.

It is important to remember that buying goods or services will not increase your chance of winning a sweepstakes, nor can you be required to purchase anything prior to winning or claiming a prize. If a company tells you that you must pay taxes on the prize, hang up immediately. Only the government can tax the prize, in which case, you would send the money directly to them and not the fraudulent company.

Many of these companies are operating out of Canada and other countries outside of the United States, making it difficult for law enforcement authorities to prosecute these individuals.