Those who enter sweepstakes and lotteries always await that special phone call notifying them that they’ve won big! Unfortunately, scammers know just how to play into our emotions and are tricking people into paying for prizes they haven’t actually won. BBB has received several reports of phone calls that impersonate Publishers Clearing House to BBB Scam Tracker.
How this scam works
You receive a phone call from someone claiming to be a Publishers Clearing House employee. They tell you you’ve won millions of dollars and a brand-new car—how exciting! The person sends you a photo of your new car and all the money you will receive. Even better, they tell you that real celebrities will come to your house in the coming days to award your prizes.
However, there’s a catch. Before you can receive your prizes, you must first pay a fee for an “IRS requirement” or a “broker’s fee.”
To pay these “fees,” the individual on the phone may instruct you to purchase a gift card and provide them with the numbers on the back of the card. They may also tell you to send money to a specific bank account or mail it to an address in another state. These fees can be hefty, ranging from a few hundred to thousands of dollars.
The person on the phone may also ask for more personal information from you, like your bank name, bank account and routing numbers. They may also ask you about your current financial situation or the savings accounts you currently hold.
If you catch on to the scam and hang up the phone, the scammer may call you back multiple times and leave you several messages asking for the money, making it difficult to end communication with them.
One consumer shared their experience to BBB Scam Tracker: “I was called…by a man named [redacted], claiming to be from Publishers Clearing House. He told me I had won 2nd prize of $13 million and a BMW. He said [celebrity names redacted] would be coming to my house to present the prize…They also told me, in order to avoid paying taxes, to get a Vanilla card for $750…I contacted BBB…and was told this is a scam.”
“If you are told you have won a prize but have to pay any money, hang up the phone, rip up the letter, delete the social media contact, and report the contact to your local law enforcement agency,” said Christopher L. Irving of Publishers Clearing House, a BBB Accredited Business. “[Publishers Clearing House] will never call or private message a consumer on social media to let them know they have won and will never ask for payment.”
How to avoid similar scams
- Remember, you have to play to win. If you’re being told you won a sweepstakes but don’t remember entering one, that’s a red flag for a scam. If you do enter sweepstakes, keep track of your entries so you can confirm any winning notifications you may receive. Read the fine print and rules for the sweepstakes you enter to know how prizes are claimed and how long the sweepstakes lasts.
- Never pay upfront fees to claim your prizes. No legitimate sweepstakes company will ask you to pay fees to receive your prizes. Any fees that claim to be for taxes, shipping and handling, or processing are fake and a red flag. If someone is asking you to pay money to claim a prize, stop communicating with them. Publishers Clearing House has shared that their winners will never have to pay to claim a prize.
- Don’t get caught up in the excitement. Sweepstakes scammers will try their best to get you very excited about your winnings, but don’t let that cloud your judgment. Take a step back and consider what the person is telling you – if you’re being told to pay money or asked to hand over personal or financial information for a sweepstakes you never entered, stop communicating with the caller.
- If you’re being asked to pay with a gift card, it’s likely a scam. Paying with a gift card is one of the most common tactics scammers use to steal money from people. If you’re given urgent, specific instructions from a stranger on the phone about what type of gift card to buy, where to buy it, and how much money to put on the gift card, hang up and do not proceed with the purchase.