Prizepot › How to spot scam competitions and prize draws
How to spot scam competitions and prize draws
Most competitions are harmless, but fake ones are common. The warning signs are consistent, and police and Action Fraud list them.
The main warning signs
Action Fraud, the UK's reporting centre for fraud, lists the following signs of lottery and prize fraud.
- You never entered. "If you haven't bought a ticket, you can't possibly have won." A legitimate lottery does not need upfront payment to release winnings.
- Pressure to act fast and to keep it secret. Scammers push you to reply quickly and keep the win confidential.
- Requests for fees. They ask for taxes, legal costs or banking charges before you can collect.
- Requests for personal or bank details. They may ask for passport copies or account information, which can be used for identity theft or to drain your account.
Lancashire Constabulary adds that some prize draws are run by criminals looking for your money or personal details, and that scammers may keep contacting you with excuses for more money while the prize never arrives.
A rule you can rely on
The advertising rulebook, the CAP Code, says consumers must not be charged to claim a prize (rule 8.21.1). So any request for a fee to release a genuine prize is a red flag. We cover this on our claiming your prize page.
Other things to check
- Who is running it? A real promoter names itself and gives contact details and terms. Be wary if you cannot tell who is behind it.
- Are there terms? The ASA says promotions must communicate significant conditions such as how to enter, the closing date and the nature and number of prizes. Missing terms are a warning.
- Does the account look real? On social media, fake accounts copy real brands. Look for the platform's verification and check the account's history. Be careful: verification badges are not a guarantee.
- Is the message unexpected? Messages from strangers announcing a prize you never heard of should be ignored. See social media giveaways.
- Are links and spelling odd? Check the address of any website before entering details.
Common scam patterns
- The surprise winner message. A text, email or letter says you have won a large sum or a holiday in a draw you do not remember entering.
- The "claim fee". You are told to pay a small fee, buy vouchers or send a transfer to release the prize. After one payment come more.
- The impersonator. A message uses the name of a well-known brand or a lottery to look official.
- The data harvester. A quick quiz or survey asks for personal details in return for a chance to win, then sells or misuses them.
The common factor is that something is asked of you before any prize arrives, whether money, bank details or personal information.
What to do if you think it is a scam
- Do not reply and do not click links.
- If you gave bank or card details, tell your bank straight away.
- Break all contact. Action Fraud's advice is to "break all contact and alert your bank".
- Report it to Action Fraud (0300 123 2040 or the website).
Legitimate but risky
Some draws are real but poor value, for example those with very long odds. A properly run paid draw is not a scam, but you should know what you are paying for. Treat it as spending, not as an investment. Check the free entry route and the terms.
If you are unsure
Ask the operator for the full terms. If it will not provide them, walk away. If the claim comes from a well-known brand, go to the brand's real website, not the link in the message, and look for the promotion there.
Frequently asked questions
Can I win a competition I never entered?
No. Action Fraud says that if you haven't bought a ticket, you can't possibly have won.
Is it normal to pay a fee to receive a prize?
No. The CAP Code says consumers must not be charged to claim a prize, and Action Fraud lists requests for fees as a warning sign.
How do I report a prize scam?
Report it to Action Fraud via its website or on 0300 123 2040, and tell your bank at once if you shared bank or card details.