Prize Scam Resurfaces

Posted: 15th June 2011

We recently ran a news item dealing with the successful prosecution of firms running bogus ‘prize draws’ which promised prizes to people. The catch being that the procedure which had to be followed in order to claim a ‘prize’ cost several pounds.
The prizes allocated to most ‘winners’ were of far less value than the payments made to the organisers and the scheme was designed to yield a good profit for them. The Office of Fair Trading successfully prosecuted the organisers and it was hoped that this would be the end of this type of scam.
Regrettably, the scam is back, offering prizes as before, but with a subtle twist. Now, the procedure requires you to apply for a ‘claim number’ (to see if you qualify for a prize) at a cost of at least £9.
The scheme is clearly designed to run at a profit for the organisers and is based at a very similar address to that of the companies prosecuted earlier in the year.
The OFT have been informed. If you have relatives who might be inclined to enter such prize draws, it is worth having a word of warning with them.