"You've won a prize": the fake competition call or text that asks you to pay

"You've won a prize": the fake competition call or text that asks you to pay

"Congratulations! You've been selected as the winner of our monthly draw. Claim your new iPhone here." Or a cheerful voice on the phone: you've won a holiday, a supermarket voucher or a cash prize from an "international lottery", and all that's left is to pay a small delivery or admin fee. It's tempting, and that's the point. If you have to pay or hand over your card details to claim a prize, it isn't a prize: it's a scam.

How does the fake prize scam work?

• A text with a link. You're told you've won a phone, a voucher or a gift from a well-known brand: a supermarket, your mobile provider, an online shop. The link goes to a site that copies the brand's look, with a countdown and a "small" fee of a few dollars for shipping.
• A call about a prize. A friendly voice (or a recording) congratulates you on a draw run by your phone company, an overseas lottery or a competition you never entered. To release the prize, they ask you to pay a fee, "tax" or customs charges, often by gift card or bank transfer to an individual.
• Card details and a code. In the most dangerous version they don't ask for a payment at all. They ask you to read out your card number "so we can pay the prize in", and then the code you receive by text. That code authorises a payment from your card or adds it to their phone wallet.
• The fee that's really a subscription. Sometimes the "small fee" signs you up to a recurring charge buried in the fine print.

Why does it look believable?

Because it copies real brands, real logos and the format of genuine promotions. Supermarkets, telcos and Lotto NZ really do run competitions, so the idea isn't far-fetched. Scammers count on that, and on the excitement that stops you thinking twice.

What are the red flags?

1. You've won something you never entered. Nobody wins a draw they didn't sign up for.
2. You have to pay to collect. Shipping, fees, "tax" or "processing": with a genuine prize, you don't pay money upfront to the person telling you about it.
3. They ask for your card details or a text code. Nobody needs your security code, expiry date or the code your bank sends you in order to give you money.
4. There's urgency or secrecy. "Reply within 24 hours", "don't tell anyone or you'll lose the prize".
5. The payment method is odd. Gift cards, cryptocurrency, a transfer to an individual or an overseas account.
6. The link isn't the official website. Long addresses with hyphens, numbers or strange endings instead of the brand's usual site.

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

1. Don't tap the link or reply to the text. Not even to say you're not interested: replying confirms your number is active.
2. If it's a call, hang up. You don't need to be polite or explain. Don't give your full name, address, date of birth or bank details.
3. Check for yourself if you're still unsure. Look up the official website or phone number of the company that supposedly picked you (not the one in the message) and ask whether the promotion exists. For lottery claims, check with Lotto NZ through its official website or app.
4. Report the text by forwarding it free to 7726, the Department of Internal Affairs scam-text reporting service, and take a screenshot first.
5. Block the number and report it in the spam numbers directory so others can recognise it.

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

1. Call your bank now on the number on the back of your card or in its official app. Ask them to block the card and issue a new one.
2. Tell them if you gave a text code: a payment may already be authorised, or your card may be linked to someone else's phone.
3. Check your transactions over the coming weeks and turn on payment notifications. Fraudulent charges and subscriptions sometimes take a while to show.
4. If you paid by bank transfer, tell your bank as soon as possible and ask them to try to recall the payment.
5. If you paid with gift cards, contact the gift card company straight away with the card numbers and receipts; sometimes unused balances can be frozen.
6. If you gave your date of birth, licence number or other personal details, watch for identity misuse: credit applications or phone accounts opened in your name.
7. Don't pay any more fees, even if they promise it's the last one before the prize is released.

Where do I report it?

• NZ Police: report it on 105 or through the 105 online service on the NZ Police website, with screenshots, the number and any receipts. This matters if you've lost money: your bank may ask for the Police reference.
• The National Cyber Security Centre: report the scam to the NCSC.
• Consumer Protection: its Scamwatch pages explain prize and lottery scams.
• Your bank, always through its official channels.

Frequently asked questions

What if I really did enter a competition with that brand? Then check through the brand's official website or customer service, not the link in the message. Genuine winners are usually contacted with details you can verify, and they're never asked to pay to receive their prize.

It was only $2.95. Should I worry? Yes. The small amount is a hook: the real goal is your card details, and sometimes a recurring subscription. Call your bank and block the card.

Someone from "the lottery" called to say I've won. If you didn't buy a ticket, you can't have won. Even if you did, check your ticket yourself through the official Lotto NZ website or app. Overseas lotteries that call out of the blue are scams.

How do they know my name? From data breaches, public profiles or lists sold between scammers. Knowing your name doesn't make the prize real.

In short

A prize you have to pay for isn't a prize. Don't tap, don't reply and don't give card details or codes; check with the brand yourself if you're unsure. If you've already paid, call your bank, block the card and report it to Police and the NCSC. Forward the text to 7726 and report the number in the NoCall spam numbers directory.