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Scam or not??

My mum has received three letters (from the same company) saying that she has been selected with our postal region, to receive a prize up to the value of £25,000. I've hastily torn the letters up and said that its a scam but she is teetering on responding. To phone them the call is going to be a mimimum of £9 - is this where they make their money? To say I'm dubious is an understatement - has anyone else come across this? The company is somewhere in Yorkshire.
Thanks

Comments

  • scotsbob
    scotsbob Posts: 4,632 Forumite
    Well the key words there are "up to"
    Your mum should not be surprised if the prize is worth £1 (if she is lucky)
  • jasonwatkins
    jasonwatkins Posts: 2,465 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You usually find that the lowest prize denomination is what you'll get - some inconsequential holiday vouchers worth about £5 quid.

    Not a scam in the truest sense of the word, but a definite ripoff.
  • geordie_joe
    geordie_joe Posts: 9,112 Forumite
    1,000 Posts Combo Breaker
    Definitely a ripoff.

    It's a simple formula, tell people they have won a prize, but what they have to pay to get the prize is a lot more than the prize is worth. So the company makes a profit every time.

    It relies on people thinking/hoping they have won one of the high value prizes, but they always win the lowest value prize.
  • kitsonian
    kitsonian Posts: 54 Forumite
    Ask your mum if she has entered a competition to win that amount of money. If not, ask yourself why would someone out of the blue would contact with claims of a large amount of money won. How would they make their money back by randomly giving out wads of cash on a seemingly random basis. There has to be something in it for them, which is presumably the money made from calling up their phone line to "claim" the prize.
  • EvanP
    EvanP Posts: 5 Forumite
    I agree with everyone else.

    She will pay the £9 to make the call and get some £5 vouchers or something.
  • geordie_joe
    geordie_joe Posts: 9,112 Forumite
    1,000 Posts Combo Breaker
    kitsonian wrote: »
    Ask your mum if she has entered a competition to win that amount of money. If not, ask yourself why would someone out of the blue would contact with claims of a large amount of money won. How would they make their money back by randomly giving out wads of cash on a seemingly random basis. There has to be something in it for them, which is presumably the money made from calling up their phone line to "claim" the prize.

    I don't mean to offend you but this is why these things work, people don't read things properly.

    The OP never said the letter claimed their mum had won £25,00, the letter said she had won "a prize up to the value of £25,000".

    The people who run these scams rely on people reading "a prize up to the value of £25,000" and thinking "Won £25,000".

    The phrase "up to £25,000" means anything from NOTHING up to £25,000".

    What they send you, as a prize, costs less than what you have to pay to get it. They charge to £10 to get your prize, but you don't mind because you think you've won £25,000. But what you get is a 10p biro that cost 30p to post to you, and they get £9.60 profit.

    You think you can't complain about it, because you got a prize that falls within the limits of nothing to £25,000, nobody ever said you'd won £25,000.
  • This sounds like a group that were sending me mail at one point and it was usually £10.00 and the cost of the phone call was 9,i learnt after calling twice lol
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