Prize and Contest Scams

What prize and contest scams are?

You are told that you “have won first prize” or that you “have won first place in a contest.” The scammer will tell you that you’ve won something substantial (such as a large sum of money or a great prize) and that all you have to do is send them money to claim the prize. Or they may not even tell you what the prize is.

Scammers use a range of ways to reach you. For example, a text message tells you that you could win a great prize by participating in a trivia competition by texting. The first message may even contain a very easy question to tempt you.

Some scammers use names that resemble official organizations, or send an envelope announcing: It’s Your Lucky Day, or You Have Won. Or they enclose what looks like a government cheque.

Facts

• If you have to pay to receive your “prize,” you haven’t won anything.
• If you have to purchase products, provide a credit card or other account numbers, or send a fee in order to receive your prize, it is not a prize.

Ways these scams try to get your money

• You have to provide your credit card number to cover the shipping and handling fee, lawyer fees etc. or “taxes” to process your winnings. This may be for just a small amount – about $3 or $4. They want you to think, “It isn’t much money, so why not risk it?”
• In a texting competition or a texting trivia scam, the scammers make money by charging extremely high rates for the messages you send, and any further messages they send to you.
• You have to call a “900” phone number to find out what you have “won.” If you call a “900” number you are paying for the call.
• You have to make “a small purchase” (typically a few hundred dollars’ worth of small items such as pens, key chains, or light bulbs) to get the prize.
• You have to provide your credit card number or chequing account number for “verification” purposes. As soon as someone has your credit card number they can use it; they do not need to have your signature.
• You have to send a certified cheque.
• You are pressured to buy “on the spot” because the prize is available for a “limited time only.”

What you can do

• Don’t pay to win or enter. Buying goods or services won’t increase your chances of winning.
• Don’t call a 900 number.
• Never give your credit card number, number to someone who claims they will “deposit winnings” in your account.
• Be wary about responding to text messages or missed calls that come from numbers you don’t recognise.