Prize & Lottery Scams
Lottery / Sweepstakes Scam
Fake notifications claiming you've won a lottery, sweepstakes, or prize — but must pay fees or taxes before receiving your "winnings."
Reported Losses
$301 million (FTC 2024)
Primary Targets
Elderly adults, hopeful individuals
Last Updated
2026-01-06
Also Known As
Prize Scam
How Scammers Contact You
How This Scam Works
You receive notification that you've won a prize you never entered to win:
**The setup:** "Congratulations! You've won $1,000,000 in the International Lottery!" "You've been selected for a $50,000 Publishers Clearing House prize!"
**The catch:** To claim your "winnings," you must pay: - Processing fees - Taxes (in advance) - Insurance - Shipping costs
**The cycle:** After each payment, there's another fee. The prize never comes because it doesn't exist.
**Why people pay:** - Dreams of financial freedom - Small fees seem worth it for big prize - Official-looking documents - Scammers are persistent and persuasive
Red Flags to Watch For
- ⚠️You "won" a lottery or contest you never entered
- ⚠️Must pay fees, taxes, or shipping to claim prize
- ⚠️Notification comes from foreign country
- ⚠️Pressure to act quickly before prize expires
- ⚠️Asked to keep winnings secret
- ⚠️Payment requested via wire, gift cards, or crypto
- ⚠️You receive a check but must return part of it
- ⚠️Can't verify the company through research
📝 Real Victim Account
"I got a call saying I won $2.5 million from Publishers Clearing House. I just needed to pay $500 in processing fees. I did. Then they needed $1,000 for insurance, then $5,000 for taxes. Over 6 months, I sent $35,000. The prize never came. My whole retirement savings — gone."
— AARP Fraud Watch Network
How to Protect Yourself
- 1You can't win a contest you didn't enter
- 2Legitimate lotteries don't require upfront payment
- 3Taxes are withheld from winnings, not paid in advance
- 4Never pay via wire transfer or gift cards
- 5Playing foreign lotteries is illegal for US residents
- 6Research any company claiming you won
- 7Publishers Clearing House never charges fees or calls to ask for payment
🆘 What to Do If You're a Victim
- 1Stop all contact and payments immediately
- 2Don't deposit any checks sent as "winnings"
- 3Report to FTC at ReportFraud.ftc.gov
- 4Report to your state attorney general
- 5If you sent wire transfers, contact the transfer company
- 6If you gave personal info, monitor your credit
🔗 Related Scams
📚 Sources & References
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