That random call saying “you’ve won a prize” is a scam

If you get a call saying “you’ve won a prize,” you might be thinking, why not claim it? Unfortunately, it’s likely a scam to steal your money — especially if it’s for a contest you didn’t enter. So how can you spot and avoid a prize scam?

Here’s how these scams often go. You get a call out of the blue saying you’ve won something — maybe a new car, a laptop, or money. The caller might even claim they’re with a well-known sweepstakes company like Publishers Clearing House, hoping to seem legitimate. (They’re not.) Before you can claim your prize, they say you need to pay “taxes,” “shipping and handling charges,” or “processing fees.” (You don’t.) Bottom line: if they say there’s a charge to get your prize, it’s a scam. If you pay, you’ll end up losing money instead of winning anything.

To help you avoid a prize scam:

• Slow down. Scammers will say things like “it’s a limited time offer” to try to pressure you to act quickly. So, if anyone tries to rush you into paying, stop.
• Know that real prizes are free. 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.
• Do some research. Search online for the name of the contest or the company with words like “complaint,” “review,” or “scam” to see what others are saying. And know that no real sweepstakes company will demand money for a prize.

For more information on how to protect yourself and others from scammers — including an action plan you can start using today — check out Consumer.gov/scams.

And if you spot a scam, tell the FTC at ReportFraud.ftc.gov.