Publishers Clearing House Scam: What is it?

Michelle Wilson - December 15, 2022

In August 2022, Missouri resident Rita May claimed she received an email telling her that she was selected out of 400,000 people as the winner of a $3.5 million sweepstakes prize, along with a new car. The email was supposedly through Publishers Clearing House (PCH). The genuine company is a direct marketing company that promotes magazine subscriptions and merchandise with prize-based games and sweepstakes.

May was curious about the email’s legitimacy, so she called the number listed. The gentleman on the other end of the call confirmed she had received the money, plus a new Mercedes Benz. He suggested that May pick out the color of her new car. Despite initially feeling excited, it was when the gentleman asked her to purchase a $1000 cash gift card to claim her prize that she questioned the legitimacy.

Finding Out the Legitimacy

She became skeptical and let the man on the phone know her concern, which only made the caller aggressive. He repeatedly called May back, demanding she “accept the gift.” Thankfully, Christopher Irving, the vice president of government, consumer, legal affairs, and communication at PCH, clarified the genuine company would never request payment from their winners.

If anyone hears of winning a cash prize, sweepstakes, or contest but requires a gift card or monetary purchase, it’s a scam. When investigating companies contacted the original phone number that reached out to May, the gentleman abruptly hung up. Within two hours, the scam artist disconnected the line.

How to Tell if You’re Being Scammed

It’s not surprising that May claims the email she received looked authentic, as scammers will try virtually anything they can to deceive people. The email the scam artist sent to May held logos from the Internal Revenue Service, Better Business Bureau, The Department of Treasury, and Bank of America, and even appeared to have signatures by the senior vice president of Publishers Clearing House.

The damage to Publishers Clearing House is potentially catastrophic, as consumers need to avoid harm. PCH doesn’t contact individuals before handing out prize money over $10,000; they show up unannounced and present the winners with the prize.

Recognizing the Difference Between Authentic and Scam Calls

Should you win a significant prize through Publishers Clearing House, you won’t know ahead of time. The prize patrol shows up and hands you a giant check. Irving suggests ending the call immediately if a scammer tries to contact you. Unfortunately, once you send money to scammers, you’re roped into their game for a long time. These efforts aren’t exclusive to individuals trying to collect money either; it seems most victims get added to a list of frequent contact.

The easiest method to get rid of the calls is to hang up the phone, remain uninterested, and block the numbers as they come in.

How to Report Fraudulent Calls

If you believe someone contacting you is a scam attempt, it’s always best to contact the Federal Trade Commission with a consumer complaint. Scam artists are efficient because they know the right things to say, playing on emotions and financial security. Reporting these calls can help prevent others from becoming a victim. The FTC maintains a database of these contacts, and although they can’t necessarily stop the calls from happening, it does help them track the source.

Publishers Clearing House maintains its own scam or fraud attempts database, sharing all information with local law enforcement and the FTC. If individuals have received a fraudulent call from PCH, they can contact and report the attempt online or by telephone.

Why Scam Calls Seem to Work on Victims

The FTC receives approximately 1.8 million fraud complaints annually, with an estimated success of 36%. Once the caller gets you on the line, many resort to aggressive sales pitches, threats, or false promises to pry information from the victim. With these details, the malicious actor receives personal information to steal identity or money.

With the average financial loss at $1,200 per victim, it’s easy to understand why these individuals continue their fraudulent calls. Autodialers can blast robocalls out by the millions for just dollars a day, making it a hefty prize when they secure even one financial account. Spoofing tools to trick victims through caller ID increase the odds of deceiving someone.

How Phone Scams Work

Phone scams will use live or automated calls, posing as representatives of familiar tech companies, government agencies, retail, or financial companies. These callers always have a time-sensitive message, often luring victims with urgency. The message may be good news (a large cash prize, vacation, or vehicle) or bad news (you owe back taxes, your account is frozen, suspended financial account). Resolving these accounts requires urgent monetary payment or confirmation of identity.

Scam Call Warning Signs

• Major corporations, companies, government agencies, or tech firms won’t contact you randomly by telephone without prior communication. These companies will often reach out through direct mail first or will respond to telephone inquiries. If you haven’t contacted a company first, it’s probably a scam.
• The highest activity for unsolicited charity calls will occur during the holidays or after natural disasters. These scam artists will prey on vulnerable populations and pitch extreme urgency to win you over.
• You must authorize automated sales calls from a company before they can contact you. Robocalls are almost always illegal and practically guarantee a scam. The only exception to this rule is political and nonprofit groups.

Protecting Yourself from a Scam

• Use a call-blocking application to screen calls or weed out spam. Most mobile phones offer a blocking functionality that will prevent the number from future contact.
• Hang up on all robocalls. Alternatively, repeatedly pressing a button will trip an automated server into believing a line is a fax number. This method removes your phone number from future contact by default.
• Independently research any travel deals or investment opportunities you hear about before sending money.
• Always put your phone number on the FTC’s National Do Not Call Registry. This registry won’t stop spam calls but can help you identify malicious actors. Legitimate telemarketers won’t contact you if you’re on the registry.

Conclusion

Although the Publishers Clearing House is a legitimate organization that hands out cash prizes, it can be challenging to determine whether the contact is genuine. Remember, PCH doesn’t contact their prize winners above $10,000. Anyone requesting a monetary amount (through a wire transfer, gift card, or other payment) to receive a prize is almost guaranteed to be a scam. When in doubt, hang up and look up the company contact number through Google. Contact the company in question directly to confirm details of the previous conversation before continuing further.