What are competition scams and how can you avoid them?
Fraud
12 May 2023

Vodacom

What are competition scams and how can you avoid them?

Understanding the nature of online competition scams and being able to recognize their red flags is crucial to protect yourself from falling victim to their tricks.

Competitions scams, which include supposed lotteries, sweepstakes, and contests, are fraudulent schemes that prey on people’s desires to win big prizes or cash rewards. These scams often present themselves as exciting opportunities to win large sums of money or valuable prizes, but they are designed to deceive and defraud unsuspecting individuals.

Lottery scams

In lottery scams, intended victims are usually contacted via email, phone calls, or text messages, claiming the recipient has won a substantial lottery prize. They may use the names of well-known lotteries or create fictitious ones to make their claims seem legitimate. To claim the prize, victims are usually asked to pay upfront fees, taxes, or administrative charges. However, once payment is made, the scammer disappears, and the promised winnings never materialise.

Sweepstake scams

Sweepstakes and competition scams operate similarly. The intended victim receives an email or SMS notification stating they have won the sweepstakes or competition, often accompanied by requests for payment to cover processing fees or taxes. These scammers may also ask for personal information, such as bank account details, to facilitate the prize transfer. Unfortunately, once victims provide the requested information or make the payment, the scammers disappear, leaving them empty-handed.

Contest scams

Contests stand out among other types of quick enrichment as they require effort on the side of the intended victim to “take part”. You’re also asked to pay a fee, taxes, or customs duties to claim your prize. Some prize notifications arrive immediately, which is not possible in real contests, which always need a jury’s approval before declaring prize winners. If you participate in an online contest that promises a “prize” right away, it’s a scam.

Even in legitimate cases where you must pay money to participate, you wouldn’t need to use services such as cryptocurrencies or other untraceable payment methods.

Tips to avoid being scammed

Be vigilant and sceptical

Be vigilant when engaging with online content. Phishing attempts often rely on creating a sense of urgency or exploiting your emotions. Avoid clicking on suspicious links or opening attachments from unknown sources. Verify the legitimacy of emails, websites, and messages by double-checking their credibility before providing personal information.

Verify website security

Before sharing sensitive information on a website, ensure it is secure. Look for a padlock symbol in the address bar and verify that the website address begins with https://." The "s" indicates a secure connection, encrypting the data exchanged between your browser and the website, making it harder for hackers to intercept your information.

Strengthen your passwords

Use unique and strong passwords for each of your online accounts. Avoid using easily guessable information such as your name, birth date, or simple combinations like "123456".

Be cautious with personal information

Always be wary about sharing personal information online. Legitimate organisations rarely request sensitive details via email or messaging platforms.

Double-check email addresses

Phishers often create email addresses that mimic legitimate organisations. Before responding to or clicking on any links in an email, carefully examine the address. Pay attention to slight variations in domain names or unusual email structures that may indicate a phishing attempt.

Report phishing attempts

If you encounter a phishing email, report it to your email provider or the organisation being impersonated. Reporting phishing attempts helps their detection and prevention, safeguarding others from falling victim to the scam.

Stay safe

While we may not be totally able to escape online fraud and various digital scams, not letting one's guard down and knowing how to act in the aftermath of being a victim is vital. Report fraud, hoaxes or phishing to Vodacom immediately - here's how

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