Lottery and Sweepstakes Scams: You Did Not Win a Prize

Lottery and sweepstakes scams are among the oldest and most persistent fraud types, adapted for the digital age. The FTC reports that prize, sweepstakes, and lottery scams accounted for over $301 million in losses in 2023. The average individual loss was $907, but many victims, particularly older adults, lose tens of thousands. The fundamental mechanism has not changed in decades: you are told you won a prize, then asked to pay to receive it.

How the Scam Works

You receive a notification, by email, text, phone call, or social media message, claiming you have won a lottery, sweepstakes, or prize. The notification may reference real organizations (Publishers Clearing House, Mega Millions) or invented contests. The prize is always substantial: $500,000, a new car, an international lottery jackpot.

The catch comes immediately: before you can claim your prize, you must pay taxes, processing fees, customs charges, or insurance. These fees start small ($50 to $200) but escalate as the scammer invents new required payments. Each payment is accompanied by reassurance that the prize will be delivered after “one more fee.” Victims caught in this cycle have paid hundreds of thousands of dollars chasing a prize that does not exist.

Some variations include sending a fake check for part of the “winnings.” The victim deposits the check, sees the funds appear in their account (banks temporarily credit funds before verification), then sends the required “taxes” via wire transfer. Days later, the bank determines the check is fake and reverses the deposit, leaving the victim responsible for the wire transfer they already sent.

Universal Rules About Real Lotteries

You cannot win a lottery you did not enter. No legitimate lottery or sweepstakes requires upfront payment. Real prizes are never contingent on buying gift cards or wiring money. Legitimate sweepstakes operators (like Publishers Clearing House) never contact winners via email or phone to demand payment. Prize winnings in the US are handled by the IRS through standard tax filing, not by paying the contest organizer directly.

Protecting Yourself and Vulnerable Family Members

Older adults are disproportionately targeted. If an elderly family member mentions winning a prize or needing to send money to claim winnings, intervene immediately. Scammers often develop ongoing relationships with victims, calling regularly and creating pressure to continue paying.

Report lottery and sweepstakes scams to the FTC at reportfraud.ftc.gov and your state attorney general. If you received a fake check, report it to your bank immediately.

For more on how scammers use fake checks, see our fake check scam guide. To understand the psychological manipulation behind these scams, explore our phishing psychology guide.

International Lottery Scams

A common variant claims you won a foreign lottery, often from Canada, the UK, Spain, or the Netherlands. These are always scams. It is illegal for US residents to participate in foreign lotteries, and no foreign lottery contacts winners unsolicited by email, phone, or text. The scammer may send official-looking documents with government seals and reference real lottery organizations.

Warning Signs Checklist

Commit these universal indicators to memory: you were notified of winning a contest you did not enter; you are asked to pay fees, taxes, or processing charges to receive winnings; the notification arrived by email, text, or social media rather than certified mail; you are asked to keep the winnings secret; the payment method is wire transfer, gift cards, or cryptocurrency. If any single item on this list is true, it is a scam. Legitimate prizes never require payment to claim, and real lottery organizations handle tax withholding through established government processes.