Information provided when entering sweepstakes, from simple mall kiosks to online promotions, can be collected, compiled into detailed marketing profiles, and eventually sold, potentially leading to scams, Kurt "CyberGuy" Knutsson explained.
While many sweepstakes are legitimate, their official rules or privacy policies often permit sponsors, affiliates, or marketing partners to use and share the collected data. This information can become part of a larger marketing profile that moves through the data broker industry or reaches those running deceptive campaigns.
Personal details collected can range from basic contact information like name, email, and phone number to more sensitive data such as age range, household income, health interests, and medication details. Even when not directly used for selecting a winner, these extra details can hold significant marketing value. The Federal Trade Commission (FTC) has noted that data brokers collect information from both online and offline sources, combining it to create profiles that help marketers predict consumer interests.
Responding to a sweepstakes signals to marketers that a prize-based offer captured attention and motivated the individual to share personal information. This entry data can be sold to advertisers, leading to more targeted advertising, increased junk mail, telemarketing calls, and spam. The information may then be combined with purchase histories, demographic estimates, and records from other sources, creating a profile that reveals much more than what was initially provided.
The Epsilon fraud case serves as a stark example of how such data can be abused. Epsilon Data Management, a large marketing company, entered into a deferred prosecution agreement with the Justice Department after one of its units sold consumer lists to mass-mailing fraud schemes. These schemes used the targeted lists to send false sweepstakes notices and other deceptive solicitations, leading to significant financial losses for victims, many of whom were older adults. Epsilon ultimately paid $150 million in penalties and victim compensation.
Knutsson outlined a potential chain of events: an individual enters a sweepstakes, providing contact information. The sponsor uses or shares this data according to its policies. A marketing company combines it with other sources, segmenting the record based on interests and response history. This information can then pass to additional marketers or data brokers. In the worst-case scenarios, a buyer might use the list for deceptive prize notices or other targeted scams. This process can occur without any malicious website or stolen passwords, starting simply with a paper form in a retail store.
Local sweepstakes and mall kiosks can feel safer due to familiarity, but this can lead people to overlook privacy terms. It is crucial to look for official rules and privacy policies before entering, checking whether data sharing with affiliates or marketing partners is permitted. Language granting permission to call, email, or text should also be noted.
To protect personal data, Knutsson advises several habits: reducing data broker exposure by searching for personal information online and utilizing opt-out processes; providing only the minimum information required for entry, especially avoiding sensitive subjects; thoroughly reading official rules and privacy policies; skipping optional marketing consent by leaving preselected boxes unchecked; using a separate email address for promotions; never providing financial information to enter a sweepstakes; saving details of the original promotion to verify any later prize claims; being vigilant about older relatives' mail for suspicious prize offers; never paying to claim a prize, as legitimate prizes are free; unsubscribing only from recognized senders; and reporting suspicious prize mail to the FTC and the U.S. Postal Inspection Service.
Ultimately, the information gathered from sweepstakes can be more revealing and risky than participants realize, especially when it becomes part of a shared, categorized, and sold marketing profile, as demonstrated by the Epsilon case. Providing minimal information, scrutinizing privacy terms, and educating vulnerable individuals about potential scams are key preventative measures.