Lottery & Prize Scams
Don't fall for fake "You've won!" notifications that steal your money through advance fees. Learn to identify and avoid lottery and prize scams.
What Are Lottery and Prize Scams?
Lottery and prize scams are fraudulent schemes where scammers contact victims claiming they've won a large sum of money, valuable prizes, or sweepstakes they never entered. To claim their "winnings," victims are told they must first pay taxes, processing fees, or other charges upfront.
These scams exploit people's natural excitement about winning and their trust in official-sounding organizations. Scammers often impersonate legitimate lotteries, government agencies, or well-known companies to make their claims seem credible.
The Federal Trade Commission reports that lottery and prize scams are among the most common types of fraud, particularly targeting older adults. The median loss per victim is $1,000, but many people lose their entire life savings believing they're about to receive a massive payout.
How Lottery and Prize Scams Work
You receive a call, email, letter, or text claiming you've won a lottery, sweepstakes, or prize. The message often includes official-looking logos and congratulatory language.
To claim your "prize," you're told to pay taxes, processing fees, insurance, or shipping costs upfront. Once you pay, the scammer disappears or asks for more money.
Warning Signs of Lottery and Prize Scams
- You didn't enter: You can't win a lottery or contest you never entered
- Upfront payment required: Legitimate prizes never require you to pay fees to claim them
- Pressure to act quickly: Claims that the offer expires soon or is time-sensitive
- Secrecy requests: Asking you to keep the winnings secret or not tell anyone
- Foreign lotteries: Claims about winning international lotteries (often illegal to participate)
- Poor communication: Emails or letters with spelling errors and unprofessional formatting
- Unusual payment methods: Requests for wire transfers, gift cards, or cryptocurrency
Common Types of Lottery and Prize Scams
Claims that you've won international lotteries like the "Spanish El Gordo" or "UK National Lottery." These often arrive by mail with official-looking documents and require advance fees to claim winnings.
Fake notifications about winning contests from well-known companies like Publishers Clearing House, McDonald's, or major retailers. Scammers use familiar brand names to build trust.
Fraudulent claims about winning government-sponsored lotteries or receiving grants. These often impersonate agencies like the Treasury Department or Federal Trade Commission.
Fake giveaways on Facebook, Instagram, or other platforms claiming you've won prizes from celebrities, influencers, or major brands. These often require sharing personal information or paying fees.
Robocalls or live callers claiming you've won prizes, often with background noise to simulate a call center environment. They create urgency by claiming limited-time offers.
How to Protect Yourself
Golden Rules
- • You can't win what you didn't enter
- • Legitimate prizes are always free to claim
- • Never pay upfront fees for prizes
- • Don't give personal information to unknown callers
- • Verify through official channels
If You're Contacted
- • Hang up or delete the message
- • Don't call back or click links
- • Research the organization independently
- • Ask for written documentation
- • Consult with family or friends
Legitimate vs. Scam Prize Notifications
- • You actually entered the contest
- • No upfront fees required
- • Clear terms and conditions
- • Verifiable contact information
- • Professional communication
- • Reasonable prize amounts
- • Proper tax documentation provided
- • You never entered any contest
- • Requires upfront payment
- • Vague or missing terms
- • Unverifiable contact details
- • Poor grammar and spelling
- • Unrealistically large prizes
- • Pressure to act immediately
What to Do If You've Been Scammed
- Stop all payments - Don't send any more money to the scammers
- Contact your bank - Report fraudulent transactions and stop any pending payments
- Document everything - Save all communications, receipts, and transaction records
- Report the scam - File complaints with the FTC, FBI's IC3, and your state attorney general
- Monitor your accounts - Watch for unauthorized activity on all financial accounts
- Consider credit monitoring - If you provided personal information, monitor your credit reports
- Warn others - Share your experience to help prevent others from falling victim
Where to Report Lottery and Prize Scams
FTC: reportfraud.ftc.gov
FBI IC3: ic3.gov
Your State Attorney General
Postal Inspection Service: (for mail scams)
Better Business Bureau: bbb.org/scamtracker
AARP Fraud Watch: aarp.org/fraudwatchnetwork
Local Police Department
Your Phone/Internet Provider
Remember: If It Sounds Too Good to Be True, It Is
Legitimate prizes never require upfront payments. When in doubt, verify independently and never give personal information or money to unknown contacts.