Don’t pay for a prize (scam)

“You’ve won!” are two words likely to get your attention – but sometimes it’s a scammer delivering the news. (Spoiler: you didn’t win anything.) Here’s how to spot and avoid prize scams.

These scams usually look something like this: You get a call or a text saying you’ve won thousands (or even millions) of dollars, a car, a fancy watch — or maybe all three! You don’t remember entering a contest, but free stuff sounds good. But if you reply, they’ll say you need to pay to get the prize — maybe for processing fees or taxes. No matter what they say, real sweepstakes have free prizes — any money you send is going to a scammer’s pocket…and, sorry, there is no prize.

Scammers often use names that sound like well-known sweepstakes or companies, like Publishers Clearing House (PCH) — to trick you into trusting them. Here are some things to know to avoid a prize scam.

• Real prizes are free. If there’s a charge, it’s a scam. Anyone who tells you to pay to get your prize — whether it’s for "taxes," "shipping and handling charges," or “processing fees” — is a scammer. Stop and walk away.
• Scammers tell you to act NOW. They’ll say it’s a limited offer and try to rush you. They don’t want you to have time to think about what’s really happening. So, if anyone tries to hurry you into paying, stop. Remember that’s something scammers do.
• Scammers use names that look like real companies. But no real sweepstakes company will demand money for a prize. If you want to double-check, reach out to the real company. Just make sure to use contact information you found yourself — not contact info from the person who called you.

Spot a prize scam? Tell the FTC at ReportFraud.ftc.gov.