What are lottery and sweepstakes scams?

Lottery and sweepstakes scams are fraudulent schemes that trick people into believing they have won a lottery or sweepstakes prize in order to steal their money or personal information. These scams are often carried out through phone calls, emails, social media messages, or mailings.

How do lottery and sweepstakes scams work?

There are a few common techniques used in lottery and sweepstakes scams:

You receive a call, email, social media message, or mailing stating you’ve won a lottery or sweepstakes prize. The message will include urgent instructions for claiming your prize and request personal information from you.
The scammers will say you need to pay taxes, fees, or other charges before you can receive your prize money. They ask you to send funds via wire transfer, prepaid debit card, gift card, or other non-traceable method.
Once you pay the requested amount, the scammers disappear. You never receive information about your supposed lottery or sweepstakes winnings.
In some cases, scammers pretend to be legitimate third parties assisting you with your prize claim. This adds credibility to the scam.
Scammers may follow up multiple times asking for more money with various excuses about why your prize hasn’t been delivered yet.

These schemes aim to convince you that you’ve won money, but they require you to pay funds upfront before you can collect it. The catch is that there is no actual prize. The scammers pocket the money you send them and disappear.

Are legitimate sweepstakes allowed to ask for money?

No, it is illegal under U.S. law for legitimate sweepstakes sponsors to require you to pay or purchase anything to enter or improve your odds of winning. If someone contacts you stating you’ve won a prize but then requests you pay fees, taxes, or other charges, it is likely a scam.

What techniques do scammers use to sound credible?

Scammers use various techniques to make lottery and sweepstakes scams sound authentic and convince victims to send money:

They include fake official documentation, account numbers, receipts, etc. in letters or emails to victims.
They pretend to be from government agencies or third party companies to sound legitimate.
They use urgent sounding deadlines like “act now or you’ll lose your winnings” to create pressure.
They claim the winnings are 100% confirmed but you must act quickly.
They send real looking checks or other documents that later turn out to be fake.
They have professional sounding phone scripts and will stay on the line as you go purchase prepaid cards or money orders.

All of these techniques build credibility so victims believe the scammers and send their own money, not realizing it is a scam until it is too late.

What are common lottery and sweepstakes scams?

Some of the most prevalent lottery and sweepstakes scams include:

Fake check scams – You receive a check for part or all of your supposed lottery or sweepstakes winnings, deposit it, then are told to wire back funds to cover taxes and fees before the check bounces.
Phishing scams – An email or ad claiming you won a prize tricks you into clicking malicious links or opening attachments containing malware meant to harvest your personal and financial data.
Advance fee scams – Scammers promise you have won a prize but must first pay fees for taxes, shipping, bank charges, etc. via wire service. You pay upfront but the winnings never arrive.
Lottery club scams – Scammers pretend you need to join a lottery club to claim winnings on a prize you never entered. You pay a membership fee but receive nothing.
Travel prize scams – Scammers inform you’ve won a free trip then load hidden fees onto your credit card without your approval or make you attend high pressure timeshare presentations.

Are there legitimate prize promotions?

Yes, there are legitimate sweepstakes and prize promotions held by real companies. Here are some signs it may be legitimate:

You entered the sweepstakes directly through the sponsoring brand’s official website or at a brick-and-mortar location.
Official rules are provided upfront that make no mention of paying fees to collect prizes.
Contact happens via channels advertised in the official rules, not unexpected calls or emails.
No fees or purchases are required to win or claim the prize.
The sponsoring brand is well known and trusted.

As long as you directly entered with the sponsoring brand, have written rules, and aren’t asked for money, the prize promotion is more likely to be legitimate. If contacted out of the blue, proceed with extreme caution.

What are signs of a lottery or sweepstakes scam?

Watch for these common red flags that indicate a lottery or prize notification is likely a scam:

You’re contacted via an unexpected method like phone, email, or social media.
The message references winning a contest you never entered.
Spelling and grammar errors are present.
You’re pressed to “act now” or risk losing the prize.
It asks for personal information like bank account numbers.
Payment is requested via wire transfer, prepaid card, or other unusual means.
Official looking seals use phrases like “national” or “federal” but not U.S. government.
If sent by mail, the envelope contains unauthorized third party logos.
The sponsor cannot be verified as real or contacted directly.
Your name and contact info is not addressed specifically.

Any one of these signs suggests the supposed prize is likely fraudulent. Exercise extreme caution when contacted about lottery or contest winnings you do not recall entering.

Are lottery scams more common in certain places?

Lottery and sweepstakes scams frequently originate from:

Jamaica – Lottery scammers often operate out of Jamaica and target the U.S. and Canada. The Jamaican government has cracked down but scams still persist.
West Africa – Nigerian 419 scams that request upfront payments are common from western Africa.
Canada – Scammers pretending to be from Publishers Clearing House in Canada target U.S. seniors.
United Kingdom – Prize draw and lottery scams by phone, email, and mail are widespread throughout the UK.
Spain – The Spanish Prisoner con involving sharing lottery winnings to “help free a wealthy prisoner” often originates in Spain.

In the U.S., Florida is a hotbed for scammers drawn to the high retiree population. Lottery and sweepstakes scams can originate anywhere, but maintaining caution around any supposed winnings from the locations above is wise.

What are examples of common lottery scam stories?

Scammers use compelling stories to convince victims to send money. Some common fake stories used in lottery and prize scams include:

You’ve won millions in a foreign country’s lottery but need to pay fees to collect it.
Your name was entered in a random workplace or charity drawing that you won.
A long lost relative died and left you an inheritance to claim.
You won a prize from a contest you don’t remember entering.
Someone overseas wants to share lottery winnings with you if you help get the money out of their country.
You won a luxury car but must pay for delivery.
You need to pay back taxes on sweepstakes winnings before you can collect them.

The stories aim to convince you there is a valid reason you’ve received a windfall. Scammers tailor the narratives to fit your personal details for added believability.

Why do scammers ask for payment by wire transfer or gift card?

Scammers prefer victims send money in ways that are irreversible and untraceable. Some reasons they avoid check or credit cards:

Wire transfers are nearly instant ways to send money that offer little fraud protection once processed.
Prepaid cards are untraceable when the card numbers are shared. They can quickly be turned into cash or bitcoin.
Checks can be canceled and traced. Banks may freeze funds if notified early enough of a scam.
Credit card charges can be disputed as fraudulent. The recipient’s identity is linked to the account.

By insisting payment is sent via wire, gift card, or other anonymous means, scammers can grab the cash and disappear without a trace before victims realize it was a scam.

What tricks do scammers use to keep victims on the phone?

If contacting victims by phone, scammers use various tricks to keep people on the line until they’ve gotten all possible money from them, including:

Staying on the line while you go purchase prepaid cards or money orders, instructing you along the way.
Making up reasons why additional fees must now be paid before you can receive your winnings.
Pretending to involve authorities like the FBI or police to verify the prize claim is legitimate.
Saying your prize must be processed by their special investigations department which takes extensive paperwork.
Putting you on hold to speak with “managers” who offer further reassurances it is real.
Arranging multiple follow up calls from other scammers pretending to be new representatives.

This constant contact and trickle of new fees keeps victims engaged. The scammers leverage psychology to gradually overcome skepticism until they have drained the maximum possible money.

Why do scammers want your personal information?

Scammers request personal data from victims for a few reasons:

They can use your information for identity theft.
Knowing account details allows them to steal money directly.
They sell your data to other scammers who can target you with new schemes.
They use details to make prize offers seem legitimate and personalized.
Information like bank accounts and billing addresses adds credibility to fake prize claims.

Refusing to provide personal information helps protect you from financial loss and identity theft. Never share sensitive data with unknown entities that contact you claiming you’ve won a prize.

What should I do if I gave money or information to a scammer?

If you already fell victim to a lottery or sweepstakes scam, take these steps immediately:

Contact your bank to stop payments on any checks, wire transfers, or debit card charges you authorized. Your bank may be able to reverse pending transactions or shut down compromised accounts.
Cancel any credit or debit cards used to make payments to scammers.
Call prepaid card companies to report gift cards bought under fraudulent circumstances. Unused funds may be recoverable.
Place a fraud alert on your credit reports in case of potential identity theft.
Change online account passwords that may be compromised.
File a report with the FTC and FBI’s Internet Crime Complaint Center detailing what happened.

Although chances of getting money back are low once transferred, notifying relevant institutions may limit damage and prevent further loss. Ongoing vigilance for fraud is essential.

How can I avoid lottery and sweepstakes scams?

Protect yourself from fraudulent prize and lottery schemes with these precautions:

Never pay any fee or tax upfront to receive winnings. Legitimate contests won’t require this.
Ignore calls, emails, or letters saying you won a prize you don’t recall entering. This is always a scam.
Don’t agree to collect winnings for someone else in exchange for a cut of the money.
Only speak with sweepstakes sponsors using official contact info from their website or printed rules.
Avoid entering foreign lotteries or providing personal details on unfamiliar gaming websites.
Hang up on high-pressure callers demanding immediate payment to claim fake prizes.

The safest option is never engaging with random contacts informing you of lottery or prize winnings. Remember that real winners don’t have to pay fees or taxes upfront.

Type of Scam	Common Techniques
Fake check scams	Send fake checks for part of supposed winnings, request funds back before check bounces
Phishing scams	Fake emails with malware links claiming user won a prize
Advance fee scams	Request upfront payment of taxes and fees before delivering non-existent winnings
Lottery club scams	Charge membership fees for fake lottery clubs claiming it’s required to receive winnings
Travel prize scams	Claim user won free trip then add hidden fees without approval

Key Takeaways

Lottery and sweepstakes scams involve tricking people into believing they won a prize in order to steal money or personal information.
No legitimate sweepstakes will ever require upfront fees or payments to collect winnings.
Never pay anything or provide personal details to random contacts claiming you won a lottery or prize.
Common red flags include urgent deadlines, requests for untraceable payments, and prizes you never entered.
If scammed, immediately contact banks, credit bureaus, and authorities to limit damage.

Conclusion

Lottery and sweepstakes scams can seem compelling but remember that real winners never have to pay to receive prizes they entered legitimately. Avoid falling victim to these schemes by exercising extreme caution when contacted out of the blue about prizes, remaining vigilant about red flags, and never paying fees or providing personal information to unknown entities. Maintaining skepticism is the best defense against lottery and sweepstakes scams that can quickly steal your money and identity if you let your guard down.