How to Spot a Competition Scam (Without Being Paranoid About Everything)

Every time I post about a competition, someone asks "is this legit?" And honestly, it's a fair question. There are definitely scammers out there.

But here's the thing – not every slightly sketchy-looking website is a scam. Let me help you tell the difference.

Actual Red Flags (Not Just Vibes)

1. No Verifiable Business Information

Legitimate businesses have addresses, company registration numbers, and real humans behind them. If you can't find any evidence of who's running the show, that's a problem.

Quick check: search Companies House for their name. If they claim to be a limited company and aren't registered, massive red flag.

2. No Evidence of Previous Winners

A competition company that's been running for months but can't show you a single winner? Suspicious. Even new operators should have some evidence of draws taking place.

3. Prizes That Don't Add Up

If they're giving away a £50,000 car with only 1,000 tickets at £10 each, where's the other £40,000 coming from? Either the odds are way worse than stated, or something's off.

4. Pressure Tactics

"Buy NOW or miss out FOREVER!" Legitimate operators don't need to create fake urgency. If you feel pushed into buying immediately, step back.

5. Payment Red Flags

Bank transfer only with no buyer protection. Cryptocurrency payments. Friends & Family PayPal. Legitimate businesses use proper payment processors that protect both parties.

6. Terms That Don't Exist (Or Are Hidden)

Every competition should have terms and conditions. If you can't find them, or they're so buried you need a map, that's a warning sign.

Things That Look Sketchy But Probably Aren't

New Websites

Every business starts somewhere. A website that's only a few months old isn't automatically a scam. Look at what they're doing, not just how long they've been doing it.

Small Social Media Followings

Not every legit operator has 50k followers. Judge the quality of engagement, not the quantity.

Cheap Website Design

Not everyone can afford a premium web designer. A basic website doesn't mean the business is fake.

No Trustpilot Reviews

As I've discussed elsewhere, Trustpilot ratings are basically meaningless. Don't judge a company by whether they've bothered to set up a profile.

How Scams Actually Work

Understanding the mechanics helps you spot them:

The Long Con

Some scammers run legitimate-looking operations for months, building trust. Then they run one big competition, take the money, and disappear. This is why ongoing evidence of winners matters.

The Never-Ending Draw

The draw gets "extended" indefinitely until they've made enough money. Proper operators set a deadline and stick to it.

The Fake Winner

They announce a "winner" who doesn't exist, or who's actually connected to the operator. Hard to prove, but watch for patterns.

The Bait and Switch

Advertise a premium prize, then substitute something lesser "due to supplier issues." Or deliver a prize that's clearly not worth the stated value.

What To Do If You're Unsure

  1. Search their name + "scam" or "review" – See what others are saying
  2. Check their social media engagement – Real communities have real conversations
  3. Ask questions – Legitimate operators respond. Scammers often don't
  4. Start small – If you want to try a new operator, buy one ticket first. Don't go all in
  5. Trust your gut – If something feels off, it probably is

If You've Been Scammed

  • Report to Action Fraud (national fraud reporting)
  • Contact your bank or payment provider for potential chargebacks
  • Report to the Advertising Standards Authority if applicable
  • Leave honest reviews to warn others

The Bottom Line

Most competition operators are legitimate. They're trying to run a business, make some money, and give people a shot at winning prizes. The scammers exist but they're the minority.

Use common sense, do basic checks, and don't invest money you can't afford to lose. Competitions should be fun – don't let paranoia ruin that, but don't be naive either.