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Prize draw scamsPrize draw scams explained

Consumer scams

Prize draw scams are common in the UK

Fake prize draw scams are the second most common scam in the UK. These scams make it look like you’ve won a large prize – often cash. However, in order to receive your ‘prize’ you have to pay money to the scammers.

Types of prize draw scam

There are two main versions of prize draw scams:

  • You receive a letter saying you’ve won a large prize. It asks you to send a fee of, say, £20 to receive it. However, the scam’s small print says you’re only being entered into a prize draw.
  • Alternatively the prize draw cam says you’ve won money but you have to order something from a catalogue to receive your prize. Again, this simply enters you into a prize draw.

One prize draw scam mailing we received told us we were the ‘Definitive confirmed winner…to be paid by cheque £32,500. You can take immediate possession of the cheque that you have truly won’. It asked us to send £20 in order to receive our prize.

However, buried in the small print the scam said ‘This document is purely for publicity purposes, presented in an attractive way.’

A spokesman for the OFT said: ‘Scammers depend on people thinking that it’s worth gambling a few pounds on the off chance that they have in fact won something. This nets scammers millions of pounds every year, and for many scam victims can be the beginning of a deluge of scam mailings and the loss of significant sums of money as they are targeted by yet more scams.’

Posting-letters

Scammers can deluge victims with scam mailings

Prize draw scams are illegal

The new Consumer Protection Regulations 2008 say fake prize draw scams  are illegal. It’s now a criminal offence to say that someone’s won a prize if they need to pay money to receive it. This applies to both sweepstake scams and premium-rate number scams. For more information see our guide to the Consumer Protection Regulations. 

The Office of Fair Trading (OFT) is able to bring criminal proceedings against prize draw scammers, and those found guilty could face up to two years in prison. 

Scams awareness

The OFT runs a scams awareness month every February, including an event called Scamnesty, which is run in conjunction with local trading standards offices. Scamnesty aims to raise awareness of scams by asking the public to put scams they receive, such as prize draw scams, in designated bins in public places.

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