Summary: Information GAO collected from several sources suggests that consumers are having major problems with deceptive mail, which includes sweepstakes, chain letters, cashier's check look-alikes, work-at-home schemes, and fraudulent charity solicitations. About one in two adults believe that in the last six months they have received deceptive mailed sweepstakes material or cashier's check look-alikes, according to GAO estimates. The Federal Trade Commission (FTC), Postal Inspection Service, and the state attorneys general offices estimate that in fiscal year 1998 about 10,400 deceptive mail complaints led to about 100 law enforcement actions. Between October 1997 and March 1999, FTC received more than 18,000 deceptive mail complaints, of which about 2,700 involved consumer payments that totaled nearly $5 million. The Postal Service received more than 16,700 complaints, of which 3,000 involved consumer fraud losses that totaled more than $5 million. The Inspection Service also had more than 1,800 open investigations on deception mail in 1998. Various federal agencies and other groups have undertaken efforts to address consumers' deceptive mail problems and educate them about these risks. For example, FTC established a national toll-free hotline for receiving deceptive mail and other complaints.
