NFIC Scamguy

Prize Promotions

Scenario: You’re notified that you have been selected to win a valuable prize. All you have to do buy promotional items such as pens or key chains with your company logo.
Scam: The items turn out to be shoddy and overpriced, and if you receive any prize, it isn’t worth what you paid to get it.

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Be wary of any phone-calls, e-mails or letters notifying you that you have won a prize when you don't even remember entering a contest.
 
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Businesses targeted for fraudulent prize offers are often asked to buy items inscribed with their logos, such as pens, pencils, or key chains, as part of a "promotion."
 
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These items are invariably shoddy quality and vastly overpriced.
 
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Another common scam is the "free" trip. It may be an attempt to lure you to a high-pressure sales presentation for a time share, or you might have to pay a "deposit" or other expenses in advance, but you'll probably never get the trip that was promised.
 
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If you receive any "prize" at all, it will not be what you expected or worth even a fraction of what you paid to get it. The only real winner is the con artist.
 
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Read the fine print of any contest entry form carefully. Sometimes by filling one out you can unwittingly become a victim of telephone cramming or slamming.
 
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It's illegal to be required to pay something in order to enter a contest or win a prize, except for raffles and other events organized by legitimate charities.
 
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Report suspicious prize promotions to the law enforcement agencies and the Better Business Bureau.

If you need advice about a solicitation or you want to report a possible scam, call the NFIC hotline at 1-800-876-7060. You can also ask questions or report fraud using our online forms.


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