Lottery Sweepstakes Scam: Is It a Scam?
Lottery and sweepstakes scams notify you that you have won a large cash prize, luxury car, or vacation, but you must pay taxes, processing fees, or shipping costs upfront. The prize does not exist and the fees never stop.
How This Scam Works
You receive a letter, email, text, or phone call claiming you won a prize from a sweepstakes, foreign lottery, or random drawing. The amount is always large and exciting, often hundreds of thousands or millions of dollars. To claim your winnings, you must pay taxes, legal fees, customs charges, or insurance costs. After paying, new fees arise: transfer charges, anti-money-laundering compliance fees, and more. Some scammers send a fake check for part of the winnings, then ask you to wire back the taxes. The check bounces days later. Victims may lose their entire savings chasing a nonexistent prize.
Red Flags to Watch For
- You cannot win a lottery or sweepstakes you did not enter
- Any requirement to pay money to claim winnings
- Foreign lotteries (it is illegal for US residents to play foreign lotteries)
- Pressure to keep the winnings secret
- Check sent for 'part of the winnings' with instructions to wire back fees
- Communication from free email accounts (gmail, yahoo, etc.)
Example Scam Messages
What to Do If You Received This
- You cannot win a contest you did not enter
- Legitimate lotteries never ask winners to pay upfront fees
- It is illegal for US residents to participate in foreign lotteries
- Delete the message and do not respond
- Publishers Clearing House and Google do not run lotteries via email
What to Do If You Fell For It
- Stop all payments immediately
- Contact your bank about any wire transfers or payments
- Do not pay additional fees even if told previous payments will be lost
- File a police report
- If you sent personal information, place a credit freeze and monitor your reports
How to Report This Scam
- Report to the FTC at ReportFraud.ftc.gov
- File a complaint with FBI IC3 at ic3.gov
- Report to the US Postal Inspection Service if received by mail at uspis.gov
- Report to your state attorney general
Last updated: February 10, 2026