"Congratulations, you've won": the fake prize call or text that asks you to pay

"Congratulations, you've won": the fake prize call or text that asks you to pay

"Congratulations! You've been selected to receive the new iPhone. Pay just $2.95 for delivery." Or a call: "You've won a holiday to Bali in our customer draw, we just need to confirm a few details." Sometimes it's a supermarket gift card, a "loyalty reward" from your phone company or an overseas lottery you've never heard of. If you have to pay anything, or hand over your card details, to receive a prize, it isn't a prize. Here's how the scam works and what to do.

How does the fake prize scam work?

1. The announcement. A text, call, email or social media message says you've won. It often uses the name of a well-known brand, a supermarket, an airline or your phone provider.
2. The link or the call. You're sent to a professional-looking website, often with a countdown timer, fake comments from other "winners" and a spin-the-wheel game you always win.
3. The small payment. To release the prize, you need to pay a tiny amount: a delivery fee, "processing", "insurance" or "tax". Two or three dollars doesn't seem worth worrying about.
4. The real goal. That form takes your full card details, and sometimes the one-time code your bank sends. With them, scammers make larger purchases, or sign you up to a hidden monthly subscription buried in the fine print.
5. The upgrade. In the phone version, especially with "overseas lottery" scams, the fees grow: taxes, legal fees, bank charges, customs, all to be paid before the "winnings" can be released. They never are.

Why does it look believable?

• Brands are copied perfectly: logos, colours and familiar wording.
• The amount requested is tiny, so it doesn't trigger the same alarm as a big payment.
• Real brands do run competitions, so "maybe I entered one" is a reasonable thought.
• They know your name, often from a data breach, which makes it feel personal.

What are the red flags?

• You don't remember entering. You can't win a competition or lottery you didn't enter.
• You have to pay to receive the prize, however small the amount.
• Countdown timers and urgency: "claim within 10 minutes".
• They ask for card details or bank codes.
• The link isn't the brand's official website.
• Payment by gift card, crypto or transfer to an individual.
• An overseas lottery. It's a long-standing scam pattern: genuine lotteries don't contact winners out of the blue and ask for fees.

What should I do if they've just called or texted me?

1. Don't tap the link and don't call back any number in the message.
2. If you think you might have entered a real competition, go to the brand's official website or app yourself and check there, or contact its customer service using details you looked up.
3. Hang up on calls. No real prize requires you to decide on the spot.
4. Report the text. If you're with Telstra, forward it to 7226 as Telstra explains; other carriers have their own options. Then delete it.
5. Report the number in the spam numbers directory.

What if I've already paid or given my card details?

1. Call your bank now on the number on your card or in its app. Ask them to block the card, issue a new one and check for other charges. If you entered a one-time code, tell them.
2. Look for subscriptions. Check your statements for small recurring charges over the next few months, and ask your bank to stop them.
3. Don't pay any more "fees", however close they say you are to the prize.
4. If you gave personal or identity details, contact IDCARE on 1800 595 160 for free advice.
5. Keep evidence: screenshots of the message, the website and any receipt.

Where do I report it?

• Scamwatch, the national scam-reporting service.
• Police, through ReportCyber via the AFP's cybercrime page, if you lost money.
• The brand being impersonated, through its official website: most large companies have a page to report scams using their name.
• Your phone provider, by forwarding or reporting the text.

Frequently asked questions

What if I really did enter a draw from that brand? Then check on the brand's official website or app, or contact it through details you found yourself. A genuine promoter can tell you whether you've won without asking for a card payment to release the prize.

It was only $2.95. Should I worry? Yes, because the amount was never the point. Your card details are the prize for the scammer. Call your bank and get the card replaced.

How do they know my name? From data breaches, social media profiles or marketing lists. Knowing your name doesn't make them legitimate.

In short

A prize you have to pay for is a scam, whether it's an iPhone, a gift card or an overseas lottery. Don't tap the link, don't pay "fees" and check any competition through the brand's official channels. If you've already entered your card, call your bank and watch for subscriptions. And report the number in the NoCall spam numbers directory to warn others.