Lottery & Sweepstakes Scams

"Congratulations, you've won!" Prize scams tell you you've won a lottery, sweepstakes, or giveaway you never entered, then invent taxes and fees you must pay before your winnings can be "released." The prize never existed, and these scams disproportionately target older adults, who are often kept on the hook for months.

How It Works:

• The Notification: A call, letter, email, or social media message announces a huge win, often invoking real names like Publishers Clearing House, Mega Millions, or a "foreign lottery."
• The Catch: Before you can collect, you must pay "taxes," "insurance," "customs," or "processing fees," payable by wire transfer, gift cards, or cryptocurrency.
• The Escalation: Each payment unlocks a new fee. Scammers keep detailed "sucker lists," so victims who pay once are targeted again, sometimes by a "government official" offering to recover the earlier losses. That is a recovery scam, and it is run by the same people.
• The Fake Check Variant: Some victims receive a partial "winnings" check to deposit and are told to wire back the fee portion. The check bounces after the money is sent.

Key Red Flags:

• You won a contest you never entered. That alone settles it.
• Any request to pay money to receive a prize. Legitimate sweepstakes never charge winners; real taxes are paid to the government, not to the lottery.
• Pressure to keep the win confidential or to act before a deadline.
• Payment demanded by gift card, wire, or crypto.
• Foreign lotteries. Playing them by mail or phone is illegal in the U.S. in the first place.

How to Protect Yourself:

• Never pay to collect a prize. No exceptions.
• Verify independently: Contact the named organization through its official website, not the phone number in the message.
• Don't deposit "winnings" checks that come with instructions to send part of the money back.
• Watch out for loved ones: If an older family member starts wiring money or buying gift cards for a "prize," step in. Repeat victimization is common.