Prize and Contest Scams: Difference between revisions
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==Prize and contest scams== | ==Prize and contest scams== | ||
You are told that you | 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. | ||
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. | 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, " | 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=== | ===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. | *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 <span class="noglossary">account</span> numbers, or send a fee in order to receive your prize, it is not a prize. | |||
===Ways these scams try to get your money=== | ===Ways these scams try to get your money=== | ||
[[File:Creditcard.jpg|300px|thumb|right]] | [[File:Creditcard.jpg|300px|thumb|right]] | ||
*You have to provide your credit card number to cover the shipping and handling fee, lawyer fees etc. or | *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 trivial scam, the scammers make money by charging extremely high rates for the messages you send and any further messages they send to you. | *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. | ||
*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 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 | *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 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 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 have to send a certified cheque. | ||
*You are pressured to buy "on the spot" because the prize is available for a "limited time only". | *You are pressured to buy "on the spot" because the prize is available for a "limited time only". | ||
===What you can do=== | ===What you can do=== | ||
* | |||
* | *Don't pay to win or enter. Buying goods or services won't increase your chances of winning. | ||
*Never give your credit card number to someone who claims they will | *Don't call a 900 number. | ||
*Be wary about responding to text messages or missed calls that come from numbers you | *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== | ==Door-to-door scams== | ||
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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. | 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 will be substandard, the bill will include items you did not agree to, their | 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=== | ===What you can do=== | ||
Door-to-door scammers will 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 contact 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. | 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. | Under BC law, if you sign a door-to-door sales contract, you have 10 days to cancel by advising the company. | ||
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==Relative scams== | ==Relative scams== | ||
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. | 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. | ||
===What you can do=== | ===What you can do=== | ||
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]. | 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]. | ||
{{REVIEWED | reviewer = [[People's Law School]], 2013}} | |||
{{Consumer Law Wikibook Navbox}} | {{Consumer Law Wikibook Navbox}} | ||
{{Creative Commons for PLS | |||
|title = Consumer Law Wikibook | |||
|author = | |||
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