Answers

Are those 'your business has won an award' emails legit?

Some are real, but many are vanity awards: an email says your business has won, then asks for a fee to claim a plaque, certificate or promotion. The Better Business Bureau says most legitimate awards cost the recipient nothing, and that if you did not apply, or the sender cannot say how you were nominated, the award is probably not legitimate. Before paying anything, ask who chose you and how, look the company up, and do not click the email's links.

How a pay-to-claim award works

The BBB's tip on vanity awards says they exist in virtually every industry. With some, you pay a fee to enter a "competition"; with others, you are simply told you have won and pointed to where you can claim the award. A typical one starts with an email and a link to click, and then comes the catch: a one-time fee to claim it.

In one message reported to the BBB, the sender also promised to promote the winner on its website for a year. The BBB calls vanity awards "a waste of business owners' money and time".

The BBB's checks before you pay

  • Research the award, starting with the company's BBB Business Profile.
  • Ask who gives the award, where they are based, how long it has existed and how you were selected; the BBB says legitimate organizations will give specific details.
  • Find out who nominated you. The BBB says that if you did not apply, or the organization cannot tell you how you were nominated, the award is probably not legitimate.
  • Look closely at any fee. The BBB says a fee for winning, or for receiving a certificate or plaque, could mean the sender is simply after your money.
  • Be wary of links in emails from strangers, which the BBB says can hide malware.

What the FTC's scam advice adds

The Federal Trade Commission's July 2023 guide for small businesses suggests clear procedures for approving purchases and invoices; as general advice, that also stops a staff member paying an award fee on the spot. The related answer on how to spot spam and scam inquiries covers the rest of the FTC's advice: urgency as a warning sign, checking a company's name, and where to report a scam.

The related answers on how to spot an SEO scam and how to spot a fake domain renewal notice cover two close cousins of this pitch.

Real awards, shown honestly

Real recognition can come from a trade association or a local readers' poll, and the people behind it can usually explain how winners were picked. As general advice, show only awards whose selection you can explain, name who gave it and the year, and never present a plaque you paid to claim as an independent judgment. Badges need the same care; the related answer on what Google Partner means shows how to check what one reflects.

Where to report one

The BBB asks that vanity award schemes be reported to BBB Scam Tracker; the related answer on how to spot spam and scam inquiries covers the FTC's reporting route.

Sources

  1. Better Business Bureau, "BBB Business Tip: How to spot and avoid vanity awards" (August 2, 2022)
  2. Federal Trade Commission, "Scams and Your Small Business: A Guide for Business" (July 2023)

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