Consumers are being tricked into paying upfront fees for non-existent prizes –cybersecurity experts share how to spot and avoid these growing scams
More and more people are falling for fake prize scams, where scammers trick them into thinking they’ve won big in a lottery, sweepstakes, or contest they never entered. These fraudsters play on excitement, promising life-changing prizes – only to ask for upfront payments for supposed taxes or fees.
Once the money is sent, the scammers disappear, leaving victims empty-handed and out of pocket. It’s a growing problem, and experts warn us to stay alert to avoid becoming the next target.
“The scammers behind these fake prize schemes are sophisticated, often using personal information to make the scams appear more believable. The emotional effect of ‘winning’ a big prize only makes it harder for people to think critically,” says Adrianus Warmenhoven, a cybersecurity expert at NordVPN.
The hidden dangers of prize scams
While these scams might seem obvious, fraudsters are constantly evolving their tactics. Scam attempts can be extremely convincing, with phony calls, emails, and even fake websites designed to deceive victims into providing their personal information and making payments.
In 2024, prize scams were the most commonly reported fraud in the US, making up 38.27% of all scam reports, according to the National Consumers League. Also, the Federal Trade Commission reported that in 2023 alone, consumers lost $301 million to lottery and prize scams, with an average loss of $907 per person. These numbers highlight the ongoing impact of prize-related fraud.
“Scammers use a variety of tactics to make their scam seem real, including spoofing caller IDs, sending counterfeit documents, and creating fake websites that mimic legitimate lottery organizations. They know how to play on human emotions,” explains Warmenhoven.
Spotting the red flags of fake prize scams
To protect yourself from falling victim to prize scams, Warmenhoven urges everyone to watch out for these common warning signs:
- Unexpected prize notices: If you didn’t enter a contest or lottery, it’s a scam.
- Upfront payment requests: Legitimate organizations don’t ask for money upfront to claim a prize.
- Pressure tactics: Scammers often create a sense of urgency, threatening that you’ll lose your “winnings” if you don’t act immediately.
- Too good to be true: If it sounds too good to be true, it probably is.
Protecting yourself from prize scams
Adrianus Warmenhoven emphasizes the importance of staying vigilant and skeptical when receiving unsolicited communication about prize winnings. “Always verify the organization’s legitimacy and never share personal information, such as bank account details or Social Security numbers, over the phone or online unless you’re absolutely sure the source is trustworthy.”
It is recommended to remember that if you didn’t enter a lottery or sweepstakes, you didn’t win. The best defense against these scams is awareness. If you have any doubts, contact the supposed prize issuer directly through official channels, and never provide personal information unless you’re sure it’s real.
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Q1 Retail Snapshot: Canadian online sales dip 3% amid economic anxiety
Posted in Commentary with tags Salesforce on April 23, 2025 by itnerdQ1 Canadian retail insights from Salesforce’s 2025 Shopping Index are out. This analyzes activity from over 1.5 billion global shoppers across 67+ countries. Canadian consumers are becoming more cautious amid ongoing economic uncertainty, with digital commerce sales declining 3% year-over-year—down from 3% growth in Q1 2024. The average spend per visit dropped to $2.57, and the conversion rate softened to 1.9%, reflecting more selective purchasing behavior.
“The Q1 2025 retail results paint a picture of a cautious Canadian consumer. High prices, economic uncertainty, and shifting priorities are all contributing to a more deliberate approach to online shopping,” says Caila Schwartz, Director of Consumer Insights and Strategy for Retail and Consumer Goods at Salesforce. “Canadian consumers are increasingly seeking out discounts and prioritizing value, while retailers are responding with targeted promotions and an emphasis on mobile-friendly experiences.”
Despite flat overall traffic, shopping habits shifted by device. Desktop traffic grew 15%, while mobile traffic declined 4%. Still, mobile remains dominant, accounting for 70% of online traffic and 66% of orders, with mobile order volume growing 6% YoY.
Order volumes fell 5%, and average order value dropped to $99.25 (down 4% YoY). Retailers leaned into promotions, with the average discount rate increasing to 16%. However, elevated cart abandonment—88% on mobile vs. 80% on desktop—shows ongoing friction in the mobile checkout process.
Search and social continued to play a major role: site search accounted for just 7% of traffic but drove 17% of orders, while 10% of traffic (and 12% of mobile traffic) came via social media.
Retailers looking to grow in Canada will need to focus on value, mobile optimization, and personalized digital experiences to meet evolving shopper expectations.
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