They were told they won $850,000. The scammer wanted money first

Tom and Cheryl Bredestege received a phone call with some life-changing news.

A man identifying himself as "Albert," told the couple they had won a sweepstakes prize worth $850,000.

"He said we are rewarding you because all these years you have paid your bills on time, and you have such good credit we are rewarding you," Cheryl Bredestege said.

But there was a catch.

Before they could receive the prize, the caller said they needed to pay more than $2,500 in taxes up front. He instructed them to purchase Amazon gift cards to cover the payment.

During our interview with them about the experience, the phone rang again. It was the same man.

This time, the demands escalated. He asked whether they could provide $36,000.

WATCH as a scammer tries to convince a couple to send him money:

Watch as scam artist tries to fool retired couple

"Now the prize has gone up," Cheryl said. "And we're supposed to keep it secret."

How to spot a prize scam

Josh Planos of the Better Business Bureau said sweepstakes and lottery scams are effective because they appeal to people's dreams of winning big.

"There's something psychological about the idea of the golden ticket that has really latched on regardless of age, regardless of sophistication," he said.

Planos said one of the biggest warning signs is being told you've won a contest you never entered.

"Legitimate sweepstakes don't provide payouts for people who didn't enter in the first place," he said.

Another major red flag: being asked to pay money before receiving your prize.

"The taxes, the shipping, the processing fees, those are not charged," Planos said. "You are not charged to claim a prize."

The Federal Trade Commission warns consumers to be skeptical if someone claiming to offer a prize:

Says they represent the government or another well-known organization. Pressures you to act immediately. Sends you a check and asks you to send money back. Insists on payment through gift cards, wire transfers or payment apps.

Why these scams can be convincing

Fortunately, the Bredesteges caught onto the scheme before losing any money, but say they understand how someone could fall for it.

"A senior citizen could pick up on it and say, 'Wow, I am being rewarded for all these years that I've done right,'" Cheryl said.

Their advice to others is simple: if someone says you've won a large prize but asks for money first, walk away.

"Mom or dad -- don't get that cashier's check (to pay the taxes)" Cheryl warned.

That way you dont waste your money.

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