Usually, they are initiated with a brochure or postcard sent to the victim to inform them that they have been selected to win a fabulous prize, such as a car, jewelry, cash, or a vacation package. Victims are told to call an 800 or 900 number, possibly subjecting themselves to the long distance charges. Victims who call the number are often told that in order to receive their prize, they must send the company a check to cover shipping, insurance, storage costs, etc. Victims do not ever receive anything of value from the company. Report a Prize Promotion or Sweepstakes Fraud Investment Scams Investment scams generally involve larger amounts of money compared to other scams.
Seniors often sink their entire life savings into the investment offer, only to lose it all.
Telemarketers may sell gemstones, rare coins, FCC licenses, oil wells, and stocks. The promise of high returns within a short period of time is used to entice the victims. Follow-up calls are made to investors in an attempt to get them to send more money. Once the consumer receives their purchase, if it is a tangible item, he discovers that it is either worthless, or worth far less than the cost of the purchase. Investors discover that it is difficult to determine the status of their investment.