SCAM AWARENESSPrize and lottery scams
Prize and lottery scams tell you that you won money, a car, or a vacation, but you must pay something first to collect it. The fee might be called taxes, shipping, insurance, or processing. Real sweepstakes do not make winners pay to get a prize. Once you pay, the scammer asks for more, and the prize never comes.
How this scam works
The news arrives by phone, mail, email, text, or social media, often for a drawing you never entered. The message may use the name of a real sweepstakes, a government agency, or a foreign lottery. The caller sounds excited and official, and may give you a claim number or a fake check to make it seem real.
Then comes the catch: you must pay a fee or tax up front, often by gift card, wire transfer, cash by mail, or cryptocurrency. Some ask for your bank account number to "deposit" winnings. After the first payment, new fees appear. Scammers may call many times, and sometimes later call pretending to be officials who can help recover your losses for a fee.
What it can look like
EXAMPLE · NOT A REAL MESSAGEPhone call: "Congratulations! You've won $2.5 million and a new car in our national sweepstakes. To release your prize, you just need to cover $499 in taxes and delivery fees. Buy gift cards and read me the numbers today so we can deliver tomorrow."
Warning signs
- You won a contest or lottery you do not remember entering
- You must pay taxes or fees before you can collect
- Payment requested by gift card, wire, cash by mail, cryptocurrency, or payment app
- Requests for your bank account or Social Security number to send winnings
- Pressure to act fast or keep the win a secret
- A check arrives with your winnings and instructions to send part back
How to protect yourself
- Remember that you cannot win a contest you never entered.
- Never pay any fee, tax, or charge to collect a prize.
- Never give bank, card, or Social Security numbers to someone claiming you won.
- Do not deposit a prize check and send money back; fake checks can bounce days later.
- Look up the real sweepstakes company yourself to check.
If you already responded
- Stop all contact and do not send more money, even if they promise the prize is almost released.
- If you bought gift cards, contact the gift card company right away and report the fraud.
- If you sent a wire or gave bank details, call your bank using the number on your statement.
- If you mailed cash or got prize mail, report it to the U.S. Postal Inspection Service.
- Expect follow-up calls offering to recover your money for a fee; those are also scams.
- Report the scam to the FTC.
Get step-by-step recovery help →
Where to report it
Common questions
Do you have to pay taxes up front to claim a prize?
No. Real sweepstakes do not make you pay the company or a third party before you can collect a prize. Taxes on real winnings are handled through your own tax return, not by sending money to the caller. Anyone asking you to pay fees or taxes up front to get a prize is running a scam.
Can I win a foreign lottery I didn't enter?
No. You cannot win a lottery or drawing you never entered. Messages saying you won a foreign lottery are a common scam. They usually ask for fees, taxes, or bank details. Do not respond, do not send money, and do not share personal information.
I received a prize check. Is it safe to deposit?
Be very careful. Fake checks can look real, and your bank may release funds before finding out the check is fake. If you send part of the money back, you may lose it and owe the bank. A real prize never requires you to return money.