Prize and Contest Scams

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

Prize and contest scams

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 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 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 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

Copyright www.shutterstock.com

• 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 will "deposit winnings" in your account.
• 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 will be substandard, the bill will include items you did not agree to, their "money-back guarantee" will be worthless, and there will be no way to contact 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 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.

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 www.consumerprotectionbc.ca.

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.

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 www.antifraudcentre-centreantifraude.ca.

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