If you’ve received a text message or email claiming you’ve been selected to take part in a survey or competition, or to receive a prize or lottery winnings, you might be the recipient of a competition scam. Learn how to identify these scams and get tips to help you stay safe online.
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Last Updated30/07/2024
What is a fake prize or competition scam?
Competition scams often come in the form of a letter, email, text message, or social media message claiming that you have won a prize in a competition or lottery you didn't enter. These scams usually ask you to pay a fee or tax to claim your prize or winnings.
Prize scams aim to trick you into giving up payment information like credit card details, often claiming these are needed for shipping a prize (frequently a phone). The scam message may direct you to a webpage where you’re asked for your details and potentially your credit card information to pay for the shipping of the prize.
If you think you’ve been the target of a competition scam you can contact Netsafe for advice and guidance. Our helpline is free, confidential and available 7 days a week.
We recommend deleting any correspondence if you suspect it’s a competition scam. If you're still unsure, contact the retailer through their official contact information, which you can find on their corporate website.
Below are some examples and red flags to look out for.
Red flags indicating a prize scam:
Offers of free money are typically too good to be true and are likely scams.
Unexpected correspondence such as emails, letters, or texts that say you’re entitled to money, a prize, or an inheritance.
Requests for up-front payments for taxes or fees to claim money or prizes, especially if you haven’t entered any competition.
Exclusive winning claims making it seem like you’re the only winner, when the same message has been sent to many others.
Official-looking documents asking for an upfront fee or tax to receive a refund or rebate.
Pressure tactics urging you to act immediately to secure a prize, aiming to get you to rush and provide information or payment.
The number one rule if you suspect something is a scam is do not engage with it and do not reply to the correspondence.
Checklist to identify competition scams
If you're unsure whether the email or text message you received is real or a scam, follow this checklist:
Verify with the company: If the email mentions a company, contact them directly using contact information from their official website or social media pages.
Payment requests: If the message asks for money or personal information for prizes, shipping, or fees, it is likely a scam. Legitimate competitions usually do not require such payments.
Email address check: Investigate the email address that sent you the message. A quick search can often reveal if it’s linked to scams.
Research online: If unsure, search the internet to research the offer or company instead of clicking any links.
How to know if it's a real competition and prize
Real competitions are free and by chance. It’s illegal to ask you to pay or buy something to enter or increase your odds of winning. Be aware that contest promoters might sell your contact information to advertisers, leading to more promotional communications.
Real competition requirements:
They must inform you that entry is free.
They should declare the prizes, their value, the odds of winning and how to redeem a prize.
Mailings must state clearly that no payment is required to participate.
Skills contests may require payment (pay to play) but ensure they are not scams by investigating thoroughly and be careful not to get caught in a cycle of paying repeatedly.
Solutions and support
Scam text messages
Do not respond or click on links.
Block the sender’s number if possible and delete the scam message.
If you opened a link on your mobile, contact your service provider for advice on checking for and removing malware. If you need to factory reset your device this will delete everything you have saved, so only do this once you’ve backed up what you want to keep.
If you shared personal information:
If you’ve shared any bank account information, report this immediately to your bank.
If money was sent through your credit card, ask your bank about applying for a chargeback.
For online money transfers, recovery might be impossible if the transaction is untraceable.
If you think you’ve been targeted by a prize scam, inform your friends and family to help them avoid falling victim.
You can contact Netsafe seven days a week for free, confidential and non-judgmental advice about an online issue impacting you or someone you know.
Whilst we cannot investigate or track scammers, we can provide advice on steps you can take to stay safe and what to do if you think you’ve been scammed.