Our world is full of scams, spam emails, and unsolicited sales calls, so it can be hard to tell the real thing from the frauds. We understand that. When we call or email a consumer to inform them they are a potential prize winner, we often get a response, “is this for real?”
5 Reasons People Are Weary of Prize Notifications
1. I Never Win Anything
If you entered, then there is a chance you will win. People really do win and this may be your lucky day! Think back and remember if you entered into a sweepstakes or contest. Sometimes you entered so long ago you may have forgotten!
2. I Didn’t Even Enter!
There are some promotions that you are entered into automatically. This can happen if you sign up for a company’s e-newsletter, made a purchase, or signed up for a rewards program to name a few scenarios. You can request to see a copy of the Official Rules so you can review all of the methods of entry. This may explain why you were automatically entered without your knowledge.
3. Why Isn’t the Brand Contacting Me Directly?
Usually the Sponsor of the promotion hires a promotion administrator to run the Sweepstakes or Contest. Notifications and shipping of prizes are frequently handled by the administrator. They will contact you on behalf of the Sponsor and work with you to claim a prize. If you feel uneasy about providing your information, you should run a quick Google search on the company’s name to make sure they are reputable or you can ask for a copy of the rules to confirm they are listed as the promotion administrator.
4. Why Do You Need My Social Security Number?
If the prize you have potentially won is over $600 in value, then you are required to report that as income on your next tax filing. The promotion administrator will collect your social security number via a W9 Tax Form. A 1099 Tax Form is then sent to you in January of the following calendar year for you to submit with your taxes. If you are being asked to provide a social security number through an online site, make sure the prize you are winning is over $600 and that the form you are filling out is secure. It is also OK to ask how the data will be protected once you provide it.
5. What Does A “Potential Winner” Mean?
Once the promotion is over and the random drawing (or judging in the case of a contest) has been completed, the top names are considered “potential winners.” This is because a clearance process needs to happen in order to determine if the people selected are actually eligible for the promotion. The Sponsor or promotion administrator will send out paperwork that asks the potential winner to confirm their name, age, residence, and employer. This is then checked against the Official Rules. If something is found to be in conflict with the Rules, or the potential winner fails to return the documents by the due date, they will be declared ineligible and an alternate winner may be selected.
We see people forfeit prizes every day because of these reasons. It is important to be cautious when supplying personal information but as long as you take a few small steps to ensure the legitimacy, there should be no reason not to accept a prize!
