🎰 Lottery & Sweepstakes Scams

Imagine this: the phone rings on a quiet afternoon, and the voice on the other end has wonderful news. You have won a big lottery prize — maybe a million dollars, a new car, or a dream trip. Your heart jumps. It feels like the answer to every prayer about bills and worries. It sounds too good to be true.

And sadly, most of the time, it is. Lottery and sweepstakes scams are among the oldest tricks in the book, and they are still one of the most common ways dishonest people steal money from older Americans. The scammer tells you that you have won a prize you never signed up for, and then asks you to pay "taxes" or "fees" before you can collect it. There is no prize. There never was. The money you send for "fees" goes straight into the scammer's pocket.

This guide will walk you through how this scam works, the warning signs to watch for, and exactly what to do if someone claims you are a winner. Read it slowly. There is no rush. Once you know the pattern, this scam becomes easy to spot — and easy to shut down.

How the trick works, step by step

The scam almost always follows the same script. Here is how it usually plays out:

1. You get the good news. A call, letter, text, or email says you won a lottery, sweepstakes, or raffle. Sometimes they use the name of a real company, like Publishers Clearing House, to sound official.
2. There is a catch. Before you can get your winnings, you must pay something first — "taxes," "processing fees," "insurance," or "delivery charges." They may say it is the law.
3. You are told how to pay. They will ask for a wire transfer, gift cards, a money order, or even cryptocurrency. These are payment methods that are very hard to trace or get back once the money is sent.
4. You are told to keep it secret. "Do not tell your family or the bank — they might try to take your prize." This keeps you from getting advice that would stop the scam.
5. The prize never comes. If you pay once, they will usually come back with another fee, and another, until you run out of money or someone stops it.

The whole trick rests on one simple fact: real winnings never ask you to pay to collect them. Keep that sentence in your back pocket. It is the shield that stops this scam every time.

Red flags: signs it is a scam

If any of these show up, you are almost certainly dealing with a scammer:

• You won something you never entered. You cannot win a lottery you never played or a sweepstakes you never signed up for. This is the single biggest giveaway.
• You must pay to receive your prize. Real lotteries and real sweepstakes do not charge winners fees, taxes, or delivery costs. If payment comes before the prize, it is a scam.
• They want gift cards or wire transfers. No real lottery collects taxes in gift cards, and the IRS does not take payment by wire transfer to a stranger.
• They tell you to keep it secret. Honest companies do not ask winners to hide the news from their families. Scammers do, because your family would warn you.
• They pressure you to act fast. "You must pay today or lose the prize." Real winnings do not expire at midnight. Pressure is a tool to stop you from thinking.
• The caller ID or letter looks slightly off. Scammers can fake phone numbers so the call looks local. A fancy letterhead or a shiny "official" seal can be printed by anyone.

The Jamaican lottery scam and American seniors

One version of this scam is so big that the FBI has made it a special focus: the so-called Jamaican lottery scam. Callers, often based in Jamaica, specifically target older Americans. They may call again and again, sometimes for months, pretending you have won millions in a Jamaican lottery.

What makes this version especially cruel is how personal it gets. The callers often act warm and friendly. They learn your name, ask about your family, and call you "friend." Some victims have even been visited or threatened when they stopped paying. The FBI has warned that these scammers build trust on purpose — kindness is part of the plan, not a sign it is real.

If someone with a foreign accent calls saying you won a Jamaican or international lottery, be extra careful. And if a caller ever threatens you or someone you love, call your local police right away. You do not have to face that alone.

What about Publishers Clearing House?

Publishers Clearing House — the company famous for surprising winners at their front door with giant checks — is one of the names scammers steal most often. You may get a call or letter saying "PCH" has chosen you.

Here is what the real Publishers Clearing House has said clearly and repeatedly: you never have to pay anything to claim a PCH prize. Not taxes, not fees, not delivery charges — nothing. The real PCH also does not notify big winners by phone call asking for money. If someone using the PCH name asks you to pay first, they are not from PCH.

The same rule applies to any real lottery or sweepstakes name you recognize. Scammers borrow trusted names the way a thief borrows a uniform. The name on the call means nothing — what matters is whether they ask you to pay.

What if they mailed you a check?

Sometimes the scammer sends you a real-looking check in the mail, described as "partial winnings" or an advance on your prize. It may look very convincing — real bank logos, watermarks, the works. They ask you to deposit it, keep some as your winnings, and wire the rest back to cover "taxes."

This is a trap. The check is fake. Banks sometimes release the money before the check officially clears, so it can look like the money is really there. Days later, the check bounces, and you owe the bank everything you sent on. The scammer keeps the money you wired.

So here is the rule: do not deposit a check from a "lottery" you never entered, and never send money back to someone who sent you a check. If a check like this arrives, take it to your bank and ask them to verify it — or just tear it up and throw it away.

What to do if this happens to you

1. Do not pay anything. No taxes, no fees, no "good faith" deposits. Hang up, delete the message, or close the letter. You owe a stranger who called you nothing.
2. Do not deposit their check. A check from an unknown "lottery" is bait. Tear it up, or bring it to your bank to confirm it is fake.
3. Talk to someone you trust. Tell a family member, a friend, or a neighbor what happened. Saying it out loud breaks the scammer's secrecy rule and almost always stops the scam cold.
4. Verify with the real company — on your own. If they claimed to be Publishers Clearing House or a state lottery, look up the company's real phone number yourself (not the number the caller gave you) and ask. You will hear the truth in one call.
5. Report it. File a report with the FTC at ReportFraud.ftc.gov, with the FBI at ic3.gov, and call the Elder Fraud Hotline at 833-372-8311 (open weekdays, 10am–6pm Eastern). Reporting helps protect the next person.
6. If money already went out, act fast. Call your bank immediately and tell them what happened. If you sent a wire transfer, ask about a recall. If you bought gift cards, call the card company — sometimes the money can still be stopped. Then report it at the places listed above.

One more gentle thought: if the idea of winning felt good because money is tight right now, that is completely understandable. Instead of chasing a stranger's promise, take a look at our simple senior calculators — they can help you see your real budget clearly, which is worth more than any "prize" a caller offers.

Common questions

Sources: FBI Internet Crime Complaint Center (IC3); FTC Consumer Advice on prize scams; Publishers Clearing House official winner guidance. Last updated October 2026.