Enter now! Fill in and win! We’ve all received the calls and seen the offers. Contests and sweepstakes are a popular way for businesses to promote new products and services and to generate some excitement for their company.

Sweepstakes and contests offered by reputable companies are legitimate and it’s fun to daydream about how you’ll use that new bike, spa gift certificate or household appliance. There are regulations in the Competition Act that companies must follow and members of the Canadian Marketing Association, an industry group representing over 800 Canadians corporations including banks, also enforces special conditions when promoting sweepstakes or contests to children and teenagers.

Recognizing a Fraudulent Contest Offer

Not all contests are genuine, however, and some are actually scams trying to trick you into revealing sensitive personal information, including banking and credit card information. It’s important to know how to recognize a fraudulent offer when you receive one. The Canadian Marketing Association offers some great tips, on how to spot a scam. Here are some things to look for:

• The deal sounds too good to be true.
• You've won a prize in a contest that you don't recall entering.
• You are asked for money to claim a prize, e.g. to pay for taxes, shipping, or processing. Be skeptical and don't let anyone pressure you into buying immediately. Any legitimate organization will agree to mail you information.
• This is the final day for this promotion, so order now.
• The caller offers to come to your home for a free demonstration.
• The caller offers to send someone over to pick up your cheque.
• You are asked for your confidential banking information. Reputable businesses do not require these details unless you are making a purchase and using that specific method of payment.
• You are asked to call a 1-900 number. You receive a piece of mail telling you to call a phone number to collect your prize. Read the fine print carefully. There is always a charge to call a 1-900 number.
• You are asked to send cash or a money order.
• The person calling refers to you by your first name and asks you a lot of personal or lifestyle questions (like how often your grown children visit you). The caller is trying to become your friend and trying to find out if you are lonely and willing to talk.
• You must make a purchase to enter the contest. In fact, no purchase is necessary in order to enter a sweepstakes, and the chances of winning are the same whether you order or not.

Source: Canadian Marketing Association

One other thing to keep in mind is that you can’t necessarily rely on your call display feature to assure you that a phone call about a contest win is legitimate. Scammers now have the technology to manipulate the call display to look as if they are calling from a real company. Remember, if it sounds too good to be true, it probably is. Don't be afraid to hang up on someone.

For more tips, or to download the CBA’s free booklet, Safeguarding Your Money, visit the Fraud and Security section of the Canadian Bankers Association website.

Do you have an idea for a future fraud prevention tip? Send us an e-mail with your idea to FraudPreventionTips@cba.ca.

Canada's banks take the issue of privacy, security and fraud prevention very seriously. They work hard to prevent their operations and customers from being used for any kind of financial crime and to raise awareness about the ways that customers can protect themselves.

As a consumer, you also have an important role to play in preventing fraud. This month we’ll take a look at how to recognize a fraudulent contest or sweepstakes offer.