Prize Notification Scams via Gift Cards
Scammers tell victims they have won a car, holiday, or cash prize and must pay taxes or release fees via gift cards before the prize can be delivered.
Part of: Prize Notification Scams
Last reviewed: 1 June 2026
Prize notification scams use the excitement of an unexpected win to override rational caution. Victims are told they have been selected as winners of a competition, sweepstake, or government programme, and that a small gift card payment is all that stands between them and a life-changing reward.
Gift cards are the perfect vehicle for this fraud: they are available at supermarkets and convenience stores, are hard to trace, and the codes can be redeemed remotely in seconds. Victims who question the gift card requirement are told it is standard for prize processing or tax compliance.
How this scam works on gift cards
A phone call from someone claiming to be from a well-known retailer, TV show, or government agency informs the victim they have won a prize. To release it, they must purchase specific denominations of gift cards and provide the codes to confirm identity.
Variants arrive by text message — often spoofed to appear from a genuine brand — with a link to a 'prize portal' where the victim enters their details and is then directed to buy gift cards at a local store.
Some scammers send a convincing fake cheque for a portion of the prize as 'proof,' instructing the victim to deposit it and purchase gift cards for fees from the proceeds. The cheque later bounces, leaving the victim liable for the full card purchase.
Common red flags
- You have won a prize from a competition you do not recall entering
- Prize can only be released after purchasing specific gift cards
- Caller insists on particular retailers or denominations of cards
- You are asked to read gift card codes aloud or send photos of them
- A cheque is sent as partial payment but you must cover fees via gift cards first
- Winner notification arrives via phone or text rather than official registered mail
How to protect yourself
- Remember: real prizes are never conditional on upfront gift card payments
- Hang up immediately on any caller asking for gift card codes to claim a prize
- Do not deposit any cheque received from an unknown sender — it will likely bounce
- Verify any prize claim directly with the brand using contact details from their official website
- Never share gift card codes with any party — once shared the funds are gone
- Warn elderly relatives about this scam type, which disproportionately affects older adults
How to report it
- Report the prize notification scam to your national consumer protection authority
- Contact the retailer whose brand was impersonated so they can issue a warning
- File a cybercrime report if the scam was conducted online or by text
Frequently asked questions
I already bought gift cards for a prize — what do I do now?
Contact the gift card retailer immediately with the card serial numbers and your receipt. Some retailers have fraud recovery programmes that may be able to lock unredeemed balances. File a report with your consumer protection agency and local police and keep all evidence.