Publishers Clearing House Scam: How You Can Identify and Avoid It
Publishers Clearing House (PCH) has been around for a while. It’s a place people go with hopes of winning big. Unfortunately, it’s also a platform that scammers frequently impersonate to steal money or personal information.
“Sweepstakes scams like this tend to work because they play on excitement and urgency at the same time, and that combination can make people skip the questions they'd normally ask,” said Taylor Kovar, certified financial planner (CFP) and cofounder of UseKlear.com.
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Read on to learn about ways to identify a PCH or other scam, and what to do if you think you’ve been targeted.
Consider the Odds of Winning
“First of all, the odds of you winning the PCH Sweepstakes are extremely, extremely low, so any indication that you won should be a red flag, because it’s so very unlikely that you actually did,” said Melanie Musson, a finance expert with Quote.com. “Wanting it to be true does not help you avoid the inevitable loss of whatever information and funds you give them.”
Look Out for Warning Signs
“PCH said it straight, they never ask for money to release winnings,” said Andrew Lokenauth, founder of the blog Fluent in Finance. “So, the moment someone claiming to be PCH asks for a fee, taxes up-front, gift cards or a wire transfer, you're dealing with a scammer.”
Lokenauth said to watch for the classic red flags:
A call or message saying you won a contest you never entered
Pressure to act fast and keep it secret
Payment through gift cards, wire or crypto
A check they send you and ask you to deposit and send part back, which is a fake check every time
PCH also delivers big prizes in person, so a random phone call is a warning sign on its own
“If you're unsure, hang up and call PCH directly,” Lokenauth added. “I've had older family members targeted by these and the scammers prey on hope and politeness. The best defense is a simple habit. Slow down, verify and remember that winning something real never costs you a dime.”
“Unfortunately, many of these scammers prey on older individuals who aren't as familiar with newer technology and might be more trusting," said Brandon Gregg, CFP and advisor with BBK Wealth Management. "Make sure you educate yourself and others you know about how scammers get your information and use it to get money from you.”
How To Report a Suspected Scam
According to PCH, you should file scam reports with the Federal Trade Commission, an agency which tracks and takes action against fraud.
“We see scams in every area of life these days,” Gregg said. “One thing usually holds true. If you are asked to pay money ahead of time, you are most likely being scammed. It's wise to question anything that seems out of place, especially if personal information is requested.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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