Consumers should research unexpected award or recognition offers before paying fees or providing financial information. Photo courtesy of Better Business Bureau

MARYSVILLE, CA (MPG) - Several local businesses have recently received congratulatory postcards or solicitations telling them they have earned recognition as one of the best businesses in their community.

But business owners may want to look beyond the congratulations before displaying the award or reaching for their wallets.

The Better Business Bureau warns businesses about so-called vanity awards, recognition programs that can use the appearance of an honor or competition to sell plaques, certificates, digital badges or other products.

Vanity awards exist across many industries and professions, according to the BBB. Some require businesses to submit an entry and pay a fee. Others notify businesses that they have already won and provide instructions for claiming the award.

Solicitations may arrive by email or mail and can include a website address, QR code or instructions for claiming the recognition. The cost may not become apparent until the recipient follows those instructions.

According to reports submitted to BBB Scam Tracker, some awards can cost recipients hundreds of dollars.

The practice is not new. The BBB has warned businesses about vanity award solicitations for years. In 2016, businesses in the Rochester and Buffalo, New York, areas received emails announcing they had won a local "Best of" award. Recipients were asked to pay $149 or more for personalized plaques.

Not every paid award program necessarily constitutes fraud. Business owners should determine whether the recognition came from an independent selection process or primarily serves as a way to sell a product.

One warning sign is an award a business never entered or knew existed.

The BBB recommends asking who nominated the business, how winners were selected, how long the award program has existed and where the organization presenting it is located. A legitimate organization should be able to explain why a particular business received recognition.

Business owners should also determine whether payment is required.

"Most legitimate awards do not come with costs to the recipient," according to the BBB. "If there is a fee, scrutinize it closely."

Businesses should also use caution before scanning QR codes or clicking links in unsolicited messages. The BBB warns that fraudulent links can expose personal information or install malware on a device.

Community business awards and reader-choice contests can provide recognition when the selection process is clear. Business owners should look for programs that identify the sponsoring organization and explain their nomination, voting or judging process.

Before purchasing a plaque or displaying an unfamiliar award, the BBB recommends researching who issued it, how the business was selected and what must be purchased to claim it.

Businesses can research organizations at BBB.org and report suspected vanity award schemes through BBB Scam Tracker at http://BBB.org/scamtracker.