Imagine this: your phone rings, and on the other end is someone telling you that you’ve just won a prize, maybe a brand new car, a big cash payout, or the latest tech. Sounds exciting, right? Unfortunately, it’s almost always a scam. These “you’ve won!” messages are one of the oldest tricks in the book, and they’re unfortunately still fooling people today. Keep reading to learn how to prevent this scam from happening to you, and how to protect your finances from scammers.

How the Prize Scam Works

Scammers will reach out by phone, text, email, or even social media claiming you’ve won something valuable. Sometimes they pretend to represent well-known companies or sweepstakes organizations to sound legitimate. But there’s a catch.

Before you can “claim” your prize, they’ll tell you that you need to pay a fee – which will be used to cover any of the following:

• Taxes
• Shipping and handling
• Processing or insurance

Here’s the truth, real prizes are free. If someone asks you to pay to receive any portion of a prize, it’s a scam.

Red Flags to Watch Out For

Scammers rely on urgency, excitement, and confusion to get you to act quickly. Here are the biggest scam warning signs:

• You didn’t enter anything: You can’t win a contest you never signed up for. If it feels random, it probably is.
• You’re asked to pay upfront: Legitimate sweepstakes never charge fees to collect any portion of the winnings.
• They request personal or financial information: No real prize requires your Social Security Number, bank account information, or credit card details.
• You’re pressured to act fast: Scammers may say it’s a “limited time offer” to rush your decision to claim the “prize.”
• They pretend to be someone you trust: The scammer might claim to be from a government agency or a well-known company, but in reality it’s just a tactic to gain your confidence.

Common Prize Scam Tactics

Scammers may seem creative, but their strategies often follow familiar patterns:

• Fake big wins: “You’ve won $1 million!” or a luxury prize.
• Impersonation: Pretending to be from companies like Publishers Clearing House.
• Phishing links: Asking you to click a link to “claim” your reward.
• Fake checks: Sending a check and asking you to send money back.
• Foreign lottery scams: Claiming you’ve won a lottery you didn’t enter (and couldn’t legally play).

At the core, the goal is always the same – to get access to your money or your personal information.

How to Protect Yourself

Staying safe from scams comes down to a few simple habits:

• Slow down, and don’t let urgency push you into a decision.
• Never pay to claim a prize.
• Don’t share personal or financial information.
• Research the company or offer online.
• Ignore unexpected “winning” messages.

If something feels too good to be true, it probably is.

What to Do if You’re Targeted

If you receive a suspicious call or message:

• Hang up or delete the message.
• Do not engage or click links.
• Block the number or sender.
• Report it to ftc.gov

If you already sent money or shared any personal information, contact your financial institution immediately so they can help protect your accounts.

Final Thoughts

Scammers count on excitement and distraction to succeed. But with a little awareness, you can stop them in their tracks. At First Financial, we’re here to help you protect your financial well-being. When in doubt – pause, verify, and contact us, because your financial safety is always worth a second look.