Prize and Contest Scams: Difference between revisions

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|lessonname= Scams to Avoid Lesson Module}}{{Scams to Avoid TOC}}
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"Congratulations! You have just won a free holiday in sunny Mexico!" Tempting, no doubt. But all too often, offers of a "free" prize turn out to be scams.


==Prize and contest scams==
==Fake lottery scams==
You get a letter in the mail. "You have won a car!" In order to secure your prize, all you have to do is send a fee to claim the prize. The organizers sound legitimate, a hospital foundation, but you’ve never heard of them. You pay the fee. But you never hear from them again.


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 <span class="noglossary">claim</span> the prize. Or they may not even tell you what the prize is.
This is a '''fake lottery scam'''.  


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.  
Often, there is no prize at all. Even if you do receive a prize, it may not be what was promised to 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.
In fact, legitimate lotteries do not require you to pay a fee or tax to collect winnings.  


===Facts===
As well, you cannot win money or a prize in a lottery unless you have entered it yourself, or someone else has entered it on your behalf. You cannot be chosen as a random winner if you haven’t entered the lottery.


*If you have to pay to receive your "prize," you haven’t won anything.
==Text message trivia scams==
*If you have to purchase products, provide a credit card or other <span class="noglossary">account</span> numbers, or send a fee in <span class="noglossary">order</span> to receive your prize, it is not a prize.


===Ways these scams try to get your money===
{{PLSStorybox
*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?"
| image = [[File:Headshot_-_Scams_to_Avoid_-_Bruce_-_2017.jpg|link=]]
*In a texting competition or a texting trivial scam, the scammers make money by charging extremely high rates for the messages you send and any further messages they send to you.
| text      = "I got a text recently: 'Tell us who won the Stanley Cup in 1915 — and you could win BIG!!' I thought, 'I know the answer! It's the Vancouver Millionaires, the only time a Vancouver team has won.' So I texted back. They kept sending hockey questions. I couldn't resist answering. When I got my next bill, I had $150 in unexpected texting charges."<br>- Bruce, North Vancouver
*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 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 <span class="noglossary">account</span> 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===
[[File:Creditcard.jpg| right | frame | link=| <span style="font-size:60%;">Copyright www.shutterstock.com</span>]]
*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 to someone who claims they <span class="noglossary">will</span> "deposit winnings" in your <span class="noglossary">account</span>.
*Be wary about responding to text messages or missed calls that come from numbers you don't recognise.
 
==Door-to-door scams==
 
While legitimate businesses sell things through door-to-door marketing, scammers also use this approach. The scammers typically employ high pressure sales tactics to get you to agree to contract services such as roofing, paving or heating.
 
The work <span class="noglossary">will</span> be substandard, the <span class="noglossary">bill</span> <span class="noglossary">will</span> include items you did not agree to, their "money-back guarantee" <span class="noglossary">will</span> be worthless, and there <span class="noglossary">will</span> be no way to <span class="noglossary">contact</span> them later. Sometimes scammers pretend to conduct a survey so they can get your personal details or to disguise their sales pitch until they have been talking to you for a while.
 
===What you can do===
Door-to-door scammers <span class="noglossary">will</span> not give you value for your money. If you are interested in a door-to-door sale, get the name and location of the company. Check them out with the Better Business Bureau. See the [[Sources of Help for Consumers]] section for <span class="noglossary">contact</span> details. Insist on a written contract and take the time to check it out. If you are feeling pressured, do not sign anything. Close the door.
 
Under BC law, if you sign a door-to-door sales contract, you have 10 days to cancel by advising the company.


Report suspicious door-to-door sales to Consumer Protection BC at 1-888-564-9963 or [http://www.consumerprotectionbc.ca www.consumerprotectionbc.ca].
A text message from a number you don't recognize encourages you to take part in a trivia contest for a great prize. All you need to do is text back correct answers to a few questions. The first questions are easy. You’re encouraged to keep playing. To claim your "prize", you’re asked a question that is virtually impossible to answer correctly.


==Relative scams==
In these '''trivia scams''', the scammers make money by charging extremely high rates for the messages you send and any further messages they send to you.  


This phone scam targets grandparents or other senior relatives. Posing as a young family member in distress, the scammer claims to have been in a car accident, or to need bail money right away. Usually the scammer asks you to wire several thousand dollars. A caller might say, "Grandma, do you know who this is?" Sometimes scammers have researched Facebook profiles for details about family members.
==Preventing problems==
[[File:Scams_to_Avoid_-_Contents3.png|thumb|275px|right| link=| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]
Here are ways to reduce the risk of being the victim of a prize or contest scam.  


===What you can do===
===Examine any offer carefully===
Read the terms and conditions of any offer very carefully. Claims of "free" or very cheap offers often have hidden costs.


Seniors should always check the story with other family members before they take any action. Report suspected scammers to the Canadian Anti-Fraud Centre (CAFC) at 1-888-495-8501 or [http://www.antifraudcentre-centreantifraude.ca www.antifraudcentre-centreantifraude.ca].
===Don't pay to participate ===
Don't pay to enter a contest. Buying things won't increase your chances of winning. Don't call or text phone numbers beginning with 1-900 unless you are aware of the costs involved.  


{{REVIEWED | reviewer = [[People's Law School]], 2013}}
===Protect your personal information===
Never give your credit card number to someone who claims they will "deposit winnings" in your account.


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Latest revision as of 21:03, 25 April 2017

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by People's Law School in March 2017.

"Congratulations! You have just won a free holiday in sunny Mexico!" Tempting, no doubt. But all too often, offers of a "free" prize turn out to be scams.

Fake lottery scams

You get a letter in the mail. "You have won a car!" In order to secure your prize, all you have to do is send a fee to claim the prize. The organizers sound legitimate, a hospital foundation, but you’ve never heard of them. You pay the fee. But you never hear from them again.

This is a fake lottery scam.

Often, there is no prize at all. Even if you do receive a prize, it may not be what was promised to you.  

In fact, legitimate lotteries do not require you to pay a fee or tax to collect winnings.

As well, you cannot win money or a prize in a lottery unless you have entered it yourself, or someone else has entered it on your behalf. You cannot be chosen as a random winner if you haven’t entered the lottery.

Text message trivia scams

A text message from a number you don't recognize encourages you to take part in a trivia contest for a great prize. All you need to do is text back correct answers to a few questions. The first questions are easy. You’re encouraged to keep playing. To claim your "prize", you’re asked a question that is virtually impossible to answer correctly.

In these trivia scams, the scammers make money by charging extremely high rates for the messages you send and any further messages they send to you.  

Preventing problems

Image via www.istockphoto.com

Here are ways to reduce the risk of being the victim of a prize or contest scam.

Examine any offer carefully

Read the terms and conditions of any offer very carefully. Claims of "free" or very cheap offers often have hidden costs.

Don't pay to participate

Don't pay to enter a contest. Buying things won't increase your chances of winning. Don't call or text phone numbers beginning with 1-900 unless you are aware of the costs involved.  

Protect your personal information

Never give your credit card number to someone who claims they will "deposit winnings" in your account.


Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence Scams to Avoid © People's Law School is, except for the images, licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence.