The #1 Golden Rule
Legitimate competitions NEVER ask for money to claim a prize
If someone asks you to pay fees, taxes, or shipping costs to receive a prize - it's a SCAM. Walk away immediately.
Remember: You can't win a competition you didn't enter!
$2.7B+
Lost to scams in Australia (2023)
ACCC Scamwatch data
12
Red Flags to Watch For
Learn them all below
100%
Verified Competitions
On Competitions.com.au
12 Red Flags of Competition Scams
Upfront Payment Required
They ask you to pay "processing fees," "taxes," "insurance," or "shipping costs" before releasing your prize.
Common scam messages:
- "Pay $50 shipping to receive your $10,000 prize"
- "Transfer $200 for customs clearance"
- "Taxes must be paid before release"
You Didn't Enter
You receive notification of winning a competition you have no memory of entering.
Exception: Automatic entry promotions (e.g., "Every purchase is an entry") are legitimate IF from known brands.
Poor Grammar & Spelling
Official notifications from legitimate companies are professionally written. Scam emails contain obvious errors.
Watch for:
- Typos and grammatical errors
- Awkward phrasing
- Incorrect company names
Suspicious Email Addresses
Legitimate companies use official email domains. Scammers use free email services or misspelled domains.
SCAM Examples:
- coles.prizes@gmail.com
- woolworths-winner@yahoo.com
- officialprize@hotmail.com
LEGITIMATE Examples:
- competitions@coles.com.au
- prizes@woolworths.com.au
- promotions@telstra.com
Urgency & Pressure Tactics
Scammers create artificial urgency to prevent you from thinking critically or researching.
Common pressure phrases:
- "Claim within 24 hours or forfeit"
- "Limited time to respond"
- "Prize will be given to alternate winner"
Request for Excessive Personal Information
Legitimate prize claims need basic details. Scammers ask for banking details, passwords, or ID copies upfront.
NORMAL to ask:
- Full name
- Mailing address
- Phone number
NEVER provide:
- Banking login details
- Credit card numbers
- Passwords
- TFN or driver's licence
Notification by Suspicious Methods
Most legitimate competitions notify winners via the method you entered (email/phone). Be wary of:
- Unsolicited Facebook messages
- Random SMS from unknown numbers
- WhatsApp messages
- Instagram DMs (even from "verified" accounts - these can be faked)
Too Good to Be True Prizes
Extraordinary prizes ($1 million, luxury cars) from unknown or small companies should raise suspicion.
If a local bakery claims to be giving away a $100,000 prize, verify extensively!
No Permit Number
In Australia, competitions with prizes over certain thresholds (varies by state) require permits. Legitimate competitions display permit numbers in their terms.
Example permit formats:
- NSW: "NSW Permit No. LTPS/24/12345"
- SA: "SA Permit T24/789"
- VIC: "VIC Permit 12345/24"
No Terms & Conditions
Legitimate competitions always have detailed T&Cs including entry methods, prize details, draw dates, and privacy policies. No T&Cs = major red flag.
Suspicious Links
Scam emails contain links to fake websites designed to steal your information.
Always check:
- Hover over links to see actual URL
- Look for misspellings (woolw0rths.com instead of woolworths.com)
- Check for HTTPS (secure connection)
Request to Keep Prize "Secret"
Scammers may ask you not to tell anyone about your "win" to prevent you from seeking advice. Legitimate companies encourage winners to share their good news!
How to Verify if a Competition is Legitimate
Check the Company's Official Website
Go directly to the company's website (don't click email links). Look for:
- Current promotions/competitions section
- Official contact details
- Social media links
Call Official Customer Service
Use the phone number from the company's official website (not the number in the notification). Ask them to verify the competition and your win.
Check Permit Numbers
Major competitions should have state permits. You can verify these with:
- NSW: NSW Liquor & Gaming
- VIC: Consumer Affairs Victoria
- QLD: Office of Fair Trading
- SA: Consumer and Business Services
Search for Scam Reports
Google the company name + "scam" or "fake competition". Check:
- Scamwatch (ACCC)
- Reddit forums
- Consumer review sites
Common Competition Scam Types in Australia
Fake Brand Impersonation
Scammers create fake social media accounts impersonating major brands (Coles, Woolworths, Telstra, banks).
How to spot:
- Check follower count (fake = few followers)
- Look for verification badge
- Check account creation date
Phishing Prize Notifications
Emails claiming you've won, asking you to click links and enter personal details on fake websites.
Never click links in unexpected prize notifications!
Advance Fee Fraud
You're told you've won a large prize but must pay fees/taxes upfront. After payment, the scammer disappears. This is the most common prize scam in Australia.
"Free" Prize with Subscription Trap
You "win" a prize but must sign up for a "free trial" that auto-renews at high cost, with difficult cancellation processes.
What to Do If You've Been Scammed
Immediate Actions:
- 1
Stop all communication with the scammer
Block their number/email and don't respond to further contact
- 2
Contact your bank immediately
If you've provided financial information or made payments
- 3
Change passwords
If you've entered them on suspicious sites
- 4
Report to authorities
See reporting links below
- 5
Warn others
Share your experience to prevent others falling victim
Where to Report Scams:
Scamwatch (ACCC)
www.scamwatch.gov.au
Report all scams - Australia's official scam reporting site
ReportCyber
www.cyber.gov.au
For cybercrime and online fraud
IDCARE
www.idcare.org | 1800 595 160
Free identity theft support service
How Competitions.com.au Keeps You Safe
Verified Competitions Only
We manually verify every competition before listing
Official Sources
Direct links to legitimate brand websites only
Permit Verification
We check state permit requirements for major prizes
Community Reporting
Users can report suspicious competitions for review
Over 413,933 members trust us to find safe, legitimate competitions
Quick Reference: Stay Safe Checklist
Never pay to claim a prize
Verify you actually entered
Check email sender domains
Ignore urgency/pressure tactics
Never share banking/password details
Look for permit numbers
Verify via official company website
Report scams to Scamwatch