Lottery & Sweepstakes Scams

Illustration showing fake lottery message

What are Lottery & Sweepstakes Scams?

Lottery and sweepstakes scams trick people into believing they've won a prize, lottery, or sweepstakes they never entered, then ask for payment to claim their "winnings."

These scams play on the natural excitement of winning something valuable and the desire for financial windfall. The scammer creates a convincing scenario where you've won a significant prize, but you must pay fees upfront to receive it.

Scammers typically request payment for:

Processing fees or administrative costs
Taxes or customs duties on the prize
Insurance fees to protect the prize during delivery
Legal fees to process the winnings
Bank transfer fees or currency conversion charges

Remember: In legitimate lotteries and sweepstakes, you never have to pay money to claim a prize you've won.

Common Types of Lottery & Sweepstakes Scams

These scams come in several forms, each designed to convince you of a non-existent prize:

Foreign Lottery Scams

Messages claiming you've won a lottery in a foreign country, even though you never purchased a ticket or entered.

Often claim to be from countries known for lotteries like Spain, Australia, or the UK.

Publishers Clearing House Scams

Scammers impersonate the well-known sweepstakes company, claiming you've won their prize.

May include fake badges, logos, or doctored photos of prize patrols to appear legitimate.

Prize Notification Scams

Official-looking emails or letters congratulating you on winning a prize from a contest you don't remember entering.

Often include counterfeit checks that will eventually bounce after you've paid "fees."

"You've Won" Phone Calls

Unexpected calls informing you that you've won a major prize and need to act quickly to claim it.

May use soundboards with crowd noise or excited announcers to sound like a real prize show.

Social Media Sweepstakes

Fake contests on social media platforms offering valuable prizes for liking, sharing, or commenting on posts.

Winners are later contacted privately and asked to pay fees to receive their prize.

Survey Prize Scams

Offers of valuable rewards for completing surveys that collect your personal information and then request fees to claim the promised reward.

Often impersonate well-known companies to appear legitimate.

Why Lottery Scams Are Effective

These scams exploit powerful psychological triggers that can override logical thinking:

Psychological Tactics Used

1

The Thrill of Winning

The excitement of an unexpected windfall can cloud judgment and make people less cautious than normal.

2

Sunk Cost Fallacy

Once victims pay some money, they're more likely to continue paying in hopes of eventually getting the prize.

3

Limited Time Offers

Creating artificial time limits pressures victims to act quickly without verifying the legitimacy of the prize.

Convincing Techniques

4

Official-Looking Documents

Scammers use professional letterheads, seals, and logos to make communications appear legitimate.

5

Small Fees Compared to Big Prizes

The requested fees seem reasonable when compared to the enormous prize supposedly being awarded.

6

Plausible Explanations

Scammers provide seemingly logical reasons why you need to pay fees, such as taxes or insurance.

Why These Scams Target Seniors

Older adults are frequently targeted for lottery and sweepstakes scams because:

They often have retirement savings or access to funds
They may be more likely to enter legitimate sweepstakes and contests
They may be less familiar with how modern lotteries and sweepstakes operate
They may be more trusting of official-looking communications
They may have grown up in an era when direct mail sweepstakes were common and legitimate

Anatomy of a Lottery Scam: Red Flags to Watch For

Let's examine a typical lottery scam notification to identify the warning signs:

FAKE

Warning Signs in This Letter

1

Win Without Entry

Claims you've won a lottery or sweepstakes you never entered. Legitimate lotteries require ticket purchase, and sweepstakes require entry.

2

Requests for Payment

Any request for money to claim a prize is a definite red flag. Legitimate prizes never require advance payment of fees.

3

Urgency and Secrecy

Instructions to act quickly and keep the win confidential are designed to prevent you from researching the offer or discussing it with others.

4

Unprofessional Language

Grammar errors, spelling mistakes, and awkward phrasing indicate that the letter wasn't written by a professional organization.

5

Suspicious Contact Methods

Instructions to contact the organization via personal email addresses or cell phone numbers rather than official company channels.

How to Protect Yourself from Lottery Scams

Follow these practices to avoid falling victim to lottery and sweepstakes scams:

Remember: No Purchase Required

Legitimate lotteries and sweepstakes never require you to pay fees, taxes, or shipping charges to collect a prize.

Question the Unexpected

Be skeptical of notifications about contests you don't remember entering. You can't win a lottery without buying a ticket.

Research Thoroughly

Before responding to any prize notification, research the company or organization. Look for contact information on their official website.

Know the Rules

Foreign lotteries are illegal in the United States, and it's illegal for U.S. citizens to play foreign lotteries from within the U.S.

Protect Personal Information

Never share bank account details, Social Security numbers, or credit card information to claim a prize.

Consult Others

If you're unsure about a prize notification, discuss it with a trusted friend, family member, or financial advisor before taking any action.

The Golden Rule for Lottery Scams

If you have to pay money to get money, it's a scam. Legitimate prizes never require any advance payment to claim them.

Red Flag Payment Methods

Be especially cautious if you're asked to pay lottery fees using these methods:

Wire Transfers

Services like Western Union or MoneyGram are popular with scammers because transfers are quick and difficult to reverse once sent.

Gift Cards

Being asked to pay fees via gift cards is a major red flag. No legitimate lottery or sweepstakes would ever ask for gift cards as payment.

Cryptocurrency

Bitcoin and other cryptocurrencies are increasingly requested by scammers because transactions are irreversible and difficult to trace.

Money Orders

Requests to send money orders to claim a prize is a clear sign of a scam, especially if sent to an individual rather than a company.

Peer-to-Peer Apps

Payment apps like Venmo, Cash App, and Zelle offer limited fraud protection and are increasingly used in lottery scams.

Prepaid Cards

Reloadable prepaid cards function similarly to gift cards and are difficult to recover once the information is shared.

Remember:

For legitimate lottery or sweepstakes winnings:

You never have to pay to receive your prize
Taxes on winnings are either withheld before payment or paid directly to the government when you file your taxes
Major prizes from reputable organizations (like Publishers Clearing House) are awarded in person, not via email or phone
Legitimate sweepstakes don't require any form of payment whatsoever

Any request for payment to claim lottery or sweepstakes winnings is a clear indication of a scam.

Real-World Lottery Scam Scenarios

Be aware of these common lottery and sweepstakes scam scenarios:

The Foreign Lottery Win

You receive a letter or email claiming you've won a lottery in a foreign country with a prize worth millions. You're asked to pay several thousand dollars in taxes or fees to receive your winnings.

Red Flag: You can't win a lottery you didn't enter, and legitimate lotteries don't notify winners by email or letter.
The Publishers Clearing House Call

Someone calls claiming to be from Publishers Clearing House saying you've won a major prize, but you need to pay a fee to release the funds or cover taxes before they can deliver your prize.

Red Flag: PCH never asks for money to claim a prize and delivers major prizes in person, not through phone notification.
The Fake Check Scam

You receive a check along with notification that you've won a prize. You're instructed to deposit the check and wire a portion back to cover taxes or fees. The check later bounces.

Red Flag: The check is fake but can take weeks to be discovered by your bank, by which time you've sent real money to the scammer.
The "Official" Prize Notification

You receive an official-looking letter with logos from well-known companies stating you've won a major prize. It includes a phone number to call to claim your prize, where you'll be asked for payment information.

Red Flag: The letterhead and logos are counterfeit, and legitimate prize notifications never ask for payment information.
The Social Media Sweepstakes

You see a post on social media about a giveaway from a major company. After liking or sharing, you're contacted that you've won but need to pay shipping and handling fees to receive your prize.

Red Flag: Legitimate companies cover all costs associated with prize delivery and never ask winners to pay fees.

What to Do If You've Been Contacted

If you receive a lottery or prize notification:

Immediate Steps

Stay calm - Don't let excitement about a potential windfall cloud your judgment
Do not send money in any form, no matter how small the amount
Don't provide personal information such as bank account numbers, credit card details, or your Social Security number
Don't call premium-rate phone numbers (like those starting with 900) that may charge you just for calling
Don't click links in emails or download attachments claiming to be prize notification documents
Research the organization using contact information you find independently (not from the notification)
Be skeptical of any prize that requires confidentiality or urgent action

If You Suspect It's a Scam

Report the scam to the Federal Trade Commission at reportfraud.ftc.gov or 1-877-382-4357
Contact the FBI's Internet Crime Complaint Center at ic3.gov for online scams
Report mail fraud to the U.S. Postal Inspection Service at uspis.gov/report
Report email scams by forwarding them to spam@uce.gov
Contact your state's attorney general's office or consumer protection agency
Save any documentation such as emails, letters, or phone numbers as evidence
Warn others about the scam to prevent them from becoming victims

How to Verify a Legitimate Prize:

If you want to verify whether a prize notification is legitimate:

Look up the company's official contact information (not using information provided in the notification)
Call the company directly and ask about the contest or sweepstakes
Search online for the company name plus words like "scam," "review," or "complaint"
Check with consumer protection agencies or the Better Business Bureau

What to Do If You've Already Sent Money

If you've already paid money to claim a prize:

Act Quickly

The sooner you act, the better your chances of recovering your money:

Wire Transfers: Contact the wire transfer service (Western Union, MoneyGram) immediately to see if the transfer can be stopped before it's picked up
Gift Cards: Contact the gift card issuer immediately to report fraud and see if the funds can be recovered
Credit Cards: Contact your credit card company to dispute the charges and report the fraud
Bank Transfers: Contact your bank immediately to try to stop the payment or begin the fraud claims process
Money Orders: Contact the issuer to see if it can be canceled before it's cashed

File Reports

Report the scam to the appropriate authorities:

Contact your local police department to file a report
Report to the FTC at reportfraud.ftc.gov
File a complaint with the FBI's Internet Crime Complaint Center at ic3.gov
Contact your state's attorney general's office
Report international scams to IC3 or the US Secret Service

Beware of Follow-Up Scams

Many lottery scam victims are contacted again by the same or different scammers with offers to help recover their money — for a fee. This is a secondary scam. Government agencies and legitimate organizations will never charge upfront fees to help you recover money from scammers.

See Detailed Recovery Steps

Legitimate vs. Fraudulent Lotteries & Sweepstakes

Knowing the differences can help you avoid scams:

Characteristics	Legitimate Lotteries & Sweepstakes	Fraudulent Schemes
Entry Method	You must purchase a ticket (lotteries) or actively enter (sweepstakes)	Claim you've won without any entry or purchase on your part
Payment Requirements	Never require any payment to claim a prize once you've won	Require fees, taxes, or other payments to claim your "winnings"
Winner Notification	Major prizes announced publicly; winners notified through official channels	Unexpected notifications via email, mail, or phone from unknown sources
Contact Methods	Use official letterhead, company phone numbers, and verifiable contact information	Often use free email services, mobile phone numbers, or non-business addresses
Time Pressure	Give winners reasonable time to claim prizes; no excessive urgency	Create artificial urgency with "claim now or forfeit" deadlines
Personal Information	Never ask for bank account details or Social Security numbers via email or phone	Request sensitive personal and financial information through unsecured channels
Verification	Can be verified through official websites and legitimate phone numbers	Often impossible to verify; contact information leads back to scammers

Know How Real Lotteries Work

For legitimate U.S. lotteries like Powerball or Mega Millions:

You must purchase a ticket from an authorized retailer
Winners are responsible for claiming their prizes (the lottery doesn't contact you)
Taxes are withheld from the winnings, not paid in advance
There are never any fees to collect winnings
Winners of large jackpots are publicly announced (though some states allow winners to remain anonymous)

Helping Others Avoid Lottery Scams

Share your knowledge to protect vulnerable friends and family:

Helping Older Family Members

Discuss lottery scams openly and without judgment
Share the fundamental rule: you never have to pay to receive a legitimate prize
Establish a trusted person they can consult if they receive unexpected prize notifications
Help set up email filters to catch common scam messages
Encourage them to discuss any potential winnings before taking action
Share examples of real scams to help them recognize warning signs
Remind them of the adage: "If it sounds too good to be true, it probably is"

Community Awareness

Share information about lottery scams with your broader community
Alert neighbors if a scam is targeting your local area
Consider organizing an information session at your local senior center
Share our printable resources with community groups
Report scams to local authorities to help them build awareness
Post information about current scams on community bulletin boards
Share news stories about lottery scams to raise awareness

Discussing Scams Effectively

When talking about lottery scams with others, especially older adults:

Focus on the sophistication of scammers rather than suggesting vulnerability
Emphasize that these scams target people of all ages and backgrounds
Share personal stories about scams you've encountered
Create an atmosphere where people feel comfortable discussing suspicious contacts
Use specific examples rather than general warnings
Avoid judgmental language that might make someone embarrassed to report a scam attempt

Download Lottery Scam Information Packet Guide (PDF)

Think You're Being Targeted by a Lottery Scam?

If you've received a suspicious prize notification, or if you've already sent money, we're here to help.

Report a Suspicious Prize Notification

I've Sent Money - What Do I Do?