Lottery and Prize Scam
Also known as: sweepstakes scam, foreign lottery scam, prize fee scam
A notification tells you you've won a lottery, sweepstakes, or prize — often one you never entered. To claim the prize, you must first pay 'taxes,' 'processing fees,' or 'insurance.' The prize doesn't exist; the fees go directly to the scammer.
Check if something looks like this scam
Paste any suspicious text, link, or phone number into our scanner.
How it works
Lottery and prize scams prey on hope and the psychology of 'why not me.' Even people who know you can't win a lottery you never entered sometimes fall for it because the possibility is so appealing.
The notification: You receive an email, letter, text, or phone call announcing you've won. Common variants: foreign lotteries (Spanish, Canadian, Australian), Publishers Clearing House impersonations, sweepstakes, Facebook giveaways.
The catch: To release the prize, you must pay something first — taxes, insurance, processing fees, customs clearance, legal retainers. Usually a few hundred to a few thousand dollars. The prize is always described as enormous — enough that the fee seems worth it.
The escalation: After the first payment, new fees emerge. Each is framed as the final step. Victims can be milked for tens of thousands of dollars over months.
The reality: Legitimate lotteries and sweepstakes never require winners to pay anything to claim a prize. Taxes on winnings are either withheld automatically or owed to the IRS — never paid through the lottery itself.
Warning signs
- ⚠Notice of winning a lottery or sweepstakes you never entered
- ⚠Request for upfront fees to claim a prize
- ⚠Payment requested in gift cards, wire transfer, or cryptocurrency
- ⚠Foreign lottery or foreign government involvement
- ⚠Urgency and deadlines to 'claim' your winnings
- ⚠Requests to keep the 'win' confidential
- ⚠Official-looking but unverifiable letters or emails
- ⚠Escalating fees after initial payment
Who does this target?
Where does it happen?
What to do if you've encountered this
- 1.Stop all contact with the scammer immediately. Do not respond, do not send more money, do not try to "reason" with them.
- 2.Document everything — screenshots of conversations, phone numbers, email addresses, websites, and any transaction details.
- 3.If money was sent, contact your bank immediately. Wire and ACH reversals are measured in hours, not days.
- 4.Report the scam to the appropriate agencies:
Warning: After any scam, watch out for "recovery scammers" who promise to get your money back for an upfront fee. They are always a second scam. See our recovery scam warning guide.
Related scam patterns
Advance Fee Fraud
You're promised a large sum of money — an inheritance, lottery win, or business opportunity — but must first pay a small 'processing fee' to release it. The money never arrives, but the fees keep escalating.
Investment Fraud
Scammers promise unrealistic returns on investments that don't exist or are structured to pay early investors with later investors' money (Ponzi schemes). Common targets include forex, crypto, real estate, gold, and 'guaranteed returns' programs.
Charity Scam
Scammers impersonate charities or create fake ones to steal donations. Often timed to major disasters, holidays, or crisis news cycles when people are most motivated to give.
