Unexpected prizes and lottery scams
Congratulations, you’ve WON!!!! – Why that unexpected prize is too good to be true
It’s probably the most common scam of all time. You receive a random text message or e-mail which says you’ve won an iPad, luxury holiday, or a cash prize from an international lottery.
For some, these scam messages are so common that our brains automatically filter them out – but for those who aren’t aware, these scams are a very real danger that can leave your bank account drained and your hopes dashed.
But to identify whether you’re being scammed or not is generally fairly easy – if you didn’t enter a competition for the so-called “prize” you’ve allegedly won, the offer is probably too good to be true and most likely a scam.
According to ScamWatch, you should always stop, think and check before you act on any unexpected winnings.
Avoid clicking on links. If you do click on one of these links, a surefire way of immediately knowing it’s a scam is if you’re asked to pay a fee to collect your winnings or prize.
Legitimate lotteries and companies will never ask you to pay any money or provide your bank account and credit card details.
Many scammers will also use the name of a reputable bank or company to make their scam look more legitimate – however reputable companies will generally never send you a link to collect your winnings or ask you to make any form of payment to collect your prize.
Crime Stoppers Victoria Chief Executive Stella Smith says if you haven’t entered into a competition, winning an unexpected prize really is too good to be true.
“Lottery scams and unexpected prizes are a common trick to prey on people’s hopes and cheat them out of their hard-earned money…Reputable companies will never ask you to click on unverified links or ask you to make a payment to receive your prize, always verify the source and if it seems too good to be true – it probably is” – Ms Smith.
Let’s take a look at some common unexpected prizes and lottery scams that you may come across:
Scammers can often pose as lawyers, bankers, or officials claiming you are the beneficiary of a distant relative’s inheritance.
They’ll even provide fake documents before asking you to pay fees and provide personal information to access the money.
To avoid this happening, you should always verify the sender’s identity, avoid sharing personal information, research the inheritance and deceased person, never pay upfront fees or taxes, and scrutinize documents for authenticity.
In rebate scams, scammers will usually pose as a government, bank, or organisation and promise a rebate for taxes or fees paid (fees you didn’t actually pay).
They will then ask for an upfront payment for ‘administration fees’ or taxes before claiming they’ll release the rebate.
Again to avoid being scammed you should verify the source’s legitimacy and never pay any fees upfront.
These scams involve fake scratchie cards that promise prizes but require a fee to claim them.
If you respond, you’re asked to pay a fee, enter a competition, or provide personal and bank information.
Again, verifying source legitimacy and not paying any fees upfront should do the trick when it comes to not being scammed.
Scammers will claim you’ve won a free or discounted holiday you didn’t enter and ask for credit card, bank details, or personal information.
If you don’t remember entering the competition, and you’re asked to provide personal information, it’s most likely a scam.
Following previous tips and verifying your source should do the trick.
One of those most common scams, you’ll receive a message that offers a share in a large sum of cash in exchange for helping an unknown person move money.
They’ll then ask you to pay a fee upfront before the money can be transferred.
Again, verify your source and never pay any fees upfront to avoid being stung by this one.
These will involve unsolicited messages that claim you’ve won a prize in a lottery or competition you didn’t enter. The scammers will then request a fee or tax payment to claim your winnings.
Follow previous advice and remember, if you didn’t enter the lottery, it’s too good to be true.
Overall, to protect yourself from lottery scams and unexpected prizes, you should always pause and verify before taking any action on offers of free money.
Legitimate lotteries don’t require fees to collect winnings, and certainly won’t ask you to share personal, financial, or identity information.
To verify further, you should consult your bank, trusted friends, legal services, or family to confirm the legitimacy of an offer.
If you think you’ve been scammed, you should act quickly to prevent further losses and contact your bank or card provider immediately to report the scam and pause transactions.
You should change passwords for all online accounts and report the scam to Scamwatch and the relevant authorities to help prevent others from falling victim to the scam.
For more information
On how to keep yourself safe online, visit esafety.gov.au.
To report a scam visit scamwatch.gov.au.
This article is presented to all Victorians by Crime Stoppers in partnership with BankVic. For more information, podcasts and articles as part of our continued series of content supported by BankVic, please Click Here.
