Key takeaways

If you must pay a fee, tax, or delivery charge to collect a prize, it is a scam. You cannot win a lottery or competition you did not enter.

  • The FTC says to keep your money and information to yourself, and calls wiring money or sending gift card numbers a sure sign of a scam.
  • Scamwatch says to never pay a fee to collect a prize, because legitimate lotteries do not charge one.
  • Scammers return with bigger promised winnings and more fees after the first payment.

Got a name, website, or phone number from the sender? Check the scam directory.

How a lottery or prize scam works

You get a card, call, email, or message saying you have won a lottery, sweepstakes, or other prize. The FTC says the contact sounds excited to deliver the news, and then says you must first pay a fee, taxes, or customs duties. They may ask for bank account details, a wire transfer, or gift card numbers. Either way, you lose money instead of receiving a prize, and the scammers often come back with more requests and bigger promised winnings.

Scamwatch describes the wider family of “unexpected winnings” scams: lottery or competition wins, inheritances from a distant relative, rebates that need an “administration fee”, travel prizes, scratch-off cards in the mail, and offers of a share of money for helping move funds out of a country. In each, the fee comes first and the money never arrives. Scamwatch warns that agreeing to move money for others can amount to money laundering, which is a criminal offence.

On social media, Scamwatch warns that scammers may pose as the platform or a well-known company, ask for personal details to “verify” you, then demand payment for taxes, fees, or delivery. Some take over a friend’s account so the message appears to come from someone you trust. The same fake-check trick used in overpayment scams is also used with prizes.

Eight warning signs

  1. A win for a contest you never entered. Scamwatch is blunt: you cannot win a lottery or competition you did not enter. This one fact settles most cases.
  2. A fee, tax, or customs charge to collect the prize. The FTC says scammers ask you to pay fees, taxes, or customs duties before you can collect. Scamwatch says never to pay a fee to collect a prize.
  3. A request for bank or card details. The FTC says not to share financial details with someone who claims to need them to deliver winnings. They are used to take money, not send it.
  4. Payment by wire transfer or gift card. The FTC calls both a sure sign of a scam. See gift card scams and bank transfer scams.
  5. A check that arrives with the “prize”. The FTC lists sweepstakes prizes among the fake-check scams. You are asked to deposit the check and send some money on. The check later fails and you owe the bank.
  6. A prize message from a friend’s account. Scamwatch warns scammers take over accounts so messages seem to come from someone you know. Confirm with your friend outside the platform before replying or clicking.
  7. Scratch-off cards or letters in the mail. Scamwatch describes scratchie cards that require a fee to claim a prize. If you pay, you do not receive the winnings or see your money again.
  8. More fees and a bigger promised prize after you pay. The FTC says the scammers often return with more requests and bigger promised winnings. Each payment buys another demand, not a prize.

How to check a prize message in two minutes

  1. Ask yourself the one question: did I enter this? If not, you did not win.
  2. Do not reply, click, or call a number in the message. Search the sender’s name and contact details online alongside the word “scam”, as Scamwatch suggests.
  3. Check the organisation through its official website, which you type in yourself. A real lottery or retailer will not mind. If an official site says no such draw exists, that is your answer.
  4. Show the message to someone you trust, or your bank. Scamwatch suggests verifying with your bank, a legal service, or a trusted friend or family member.
  5. If it came from a friend on social media, ask them by phone or in person. Report the message to the platform.

If you already paid or gave details

Act on what you gave. These steps follow the FTC’s and Scamwatch’s advice.

  1. Contact your bank or card provider immediately. Report the scam and ask them to stop transactions. Scamwatch also advises changing passwords on your devices and accounts, including banking, email, and shopping.
  2. If you paid by gift card, wire, or crypto, contact the issuer or provider right away and ask for a reversal. See the FTC’s steps by payment method on its what to do if you were scammed page.
  3. If you deposited a check and sent money onward, tell your bank. See marketplace overpayment scams.
  4. If you shared ID details, contact your bank and use identity support where you live. In Australia and New Zealand, IDCARE offers free help.
  5. Report it officially. See the list below.
  6. Do not pay a “recovery” service. See recovery scams.

Where to report

More help from official sources

Scambaba is an independent educational project. Reporting and recovery options depend on where you live. How these guides are researched is on the editorial policy.

Frequently asked questions

Can I win a lottery I did not enter?

No. Scamwatch says you cannot win a lottery or competition unless you entered it. A message saying otherwise is a scam.

Do real prizes ever charge a fee?

Scamwatch says legitimate lotteries do not charge a fee to collect a prize. The FTC says to keep your money and information to yourself and treats wiring money or sending gift card numbers as a sure sign of a scam.

Why do they ask for gift cards or a wire transfer?

These methods are hard to trace and hard to reverse. The FTC calls both a sure sign of a scam in prize cases. See our guides on gift card and bank transfer scams.

What if the message came from a friend?

Scamwatch warns that scammers may take over a friend’s account so the message looks genuine. Contact your friend by phone or in person, and report the message to the platform.

I paid a fee. Will they keep asking?

Often yes. The FTC says scammers frequently return with more requests and bigger promised winnings. Stop paying, tell your bank, and report it.