“Congratulations! You’ve just won…” A huge cash prize. A luxury car. A tropical vacation. Sound familiar? That’s because it’s one of the oldest tricks in the scammer playbook.
According to the Federal Trade Commission (FTC), here’s how it typically plays out:
These fake prize scams often start with a random call, text, or message out of the blue. You’re told you’ve hit the jackpot. You don’t recall entering a contest, but hey, free stuff is free stuff, right?
Not quite. Once you respond, the “catch” shows up: “You just need to pay a small fee to claim it.” That’s your warning sign. Real sweepstakes never make you pay to collect your winnings. Not for taxes. Not for shipping. Not for “processing.” If someone’s asking for money, it’s a scam — and there’s no prize coming.
Scammers often pretend to be from big-name companies or popular contests — using names that sound familiar, such as Publishers Clearing House (PCH) — to earn your trust. Don’t fall for it.
Stay sharp with these tips to avoid a prize scam:
- Payment needed = scam. If they ask you to pay for a prize, walk away.
- Don’t rush. Scammers pressure you to act fast so you don’t have time to think it through.
- Double-check the source. If it seems legit, verify it — using contact information you look up yourself, not what they give.
Protect yourself. Know the signs. If you think you’ve spotted a prize scam, tell the FTC at reportfraud.ftc.gov. For more information on scams, visit cefcu.com/security.
