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In these scams, intended victims are notified by mail that they have won a free prize which is one of five or so items listed. Sometimes these may include new cars, houses, expensive vacations, etc. as well as one item of little value. To get the prize, the victim must call the sending company.
The USPIS provides two examples of what can happen when a victim responds:
A man in San Mateo, California, paid $398 for "shipping charges" to receive a "free" 1988 Pontiac automobile. Needless to say, he got nothing.
A Bergen County, New Jersey, resident paid a $69 "shipping and handling charge" to get his "free" $1,000 savings bond (with a maturity of some 30 years). He could have bought the same bond from the U.S. Government for only $50.
An "all terrain vehicle" turned out to be a lawn chair with wheels.
A "sport fishing boat" was an inflatable raft.
A "genuine fur coat" was a dyed rabbit pelt worth about $30.
"Designer" or "diamond" watches tend to be cheap or practically worthless junk and may be counterfeit products.
The scam artists make their profits by requiring the victim to pay shipping, handling and/or processing fees--or require that the victim purchase inferior or overpriced goods sold by high pressure salespeople working from the boiler rooms where the victim's calls are directed.
Consumers are cautioned that these "free prizes" can prove to be quite expensive.
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