Pay for a prize? It’s probably a scam

Rachel is confused. She “won” a gift card, but now they want her to pay $60 to redeem it.

“If I won the prize why am I being asked to pay?” she asked me in an email. “Do they do this to discourage you from receiving your prize due to additional payments?”

No. They do it because it’s a scam.

In fact, this is a telltale sign that you’re dealing with a bogus offer. You “win” a cruise but then have to pay a booking fee or some other nonsense surcharge. Often, that fee is more than the value of the prize itself.

“Is is always legal to hold prizes like gift cards for fees?” she asked.

Our dialog, conducted on a recent Saturday morning, is interesting because it shows how these fraudsters put ideas in your head. Here’s an edited version:

Me: That’s a scam. If you win something, it should be free.

Rachel: Do you also think if you won something outside of you state that delivery of your winning should be free?

Me: Yes, if it’s free, the whole thing should be free.

Rachel: If the bank says you must pay a fee for delivery before you can obtain your prize are you saying these are crooks inside the bank kinda?

Me: It smells like a scam to me, but I can’t make a determination unless I see what they’re offering you.

Rachel: If I registered for a subscription to participate in a prize awarding offer and I won and it was confirmed a win and then upon trying to obtain prize thru the same means and are asked to pay fees for delivery that is real don’t you think?

Me: No. You should never have to pay anything for a prize. It is a scam.

It sounds as if Rachel has already made up her mind about this “prize” and is looking for some validation from me. I can’t help with that. It’s difficult for me to imagine a scenario under which you’d pay $60 to deliver a gift card that you’d won. I mean, the gift card probably isn’t worth that much.

It’s simple, really. If you’ve won a prize, you should get your prize with no strings attached.

(Photo: smil/Flickr Creative Commons)

  • http://www.eyeonannapolis.net John Frenaye

    I agree 100% with you on this. MAYBE if you won something and there was a value to the documents (like when they had paper airline tix, maybe cruise docs, a gift card, etc.) and they asked you to pay for the shipping (not a fee) and the price was in line with Fedex, it might be legit.

    Hey, if you won a $500 gift card to GAP and for some reaon it could not be delivered electronically, if they asked for $8 to $15 to overnight the card to you, I say it is legit. But then again only on the merchants/companies that you know and trust.

    But she is getting scammed Hope she lies her cruise!

  • RandyB

    Rachel, it’s a SCAM!

  • Meredith Putvin

    Scam.

    According to http://www.usps.com (US Postal Service), the cost to send a first class letter under 1 oz is $.44 (44 Cents). That’s all it would take to send you the Gift card by mail. If you want it certified so that you are sure it is received by the correct person, $2.80…

    Common Sense, but a lot of people do not use this when they see the words “Free.”

  • Sharon Adcock

    As Chris & others have noted, it’s a scam. Legitimate sweepstakes or contests prize wins, whether giftcard, merchandise, cash or trips, do not require the winner to pay for shipping or a booking fee. The winner may have to pay income taxes on their win, but that’s a separate issue.

  • P Rokwu

    Hello,

    I am an exiled Nigerian Prince and need assistance getting my $20 million inheritance out of the country. I am willing to pay 5% for this assistance. Can you please put me in contact with Rachel?

  • Merryl Gross

    Rachel, I won at $25,000 prize and there was not a single fee involved. (Well, I had to get a document notarized but my bank did that for free.) I would suspect that you “won” a gift card worth considerably less than $60. I have also received gift cards from different vendors completely via email or the Web, with no handling costs whatsoever. This must be a scam. There is no reason you should have to pay $60 to receive any kind of gift card as a prize.

  • Carrie Charney

    I entered to win a vacation to Hawaii through a contest in TV Guide a few decades ago. I was a “winner” and all I had to do was pay $25.00, worth more in those days, for my prize. Once I saw that, I just tossed the letter saying I had won in the waste basket without thinking twice. Several months later, the contest was exposed as a scam and lots of people had fallen for it. TV Guide actually apologized to the public for not having researched the company.

    My daughter won first prize in a national contest sponsored by Drakes Cakes. She had entered by filling out a form off a cake box. The prize was totally free and clear, save for taxes, and we had to sign affidavits in order to collect.