Getting a call, letter, or email announcing that you have won a sweepstakes or lottery is exciting. That excitement is what the scammer is counting on.
Sweepstakes scams have one universal tell: they ask you to pay money to claim your winnings. No real sweepstakes, lottery, or prize ever requires payment to collect.
What it sounds like
"Congratulations! You have won the Publisher's Clearing House Sweepstakes grand prize of $2.5 million. To release your winnings, we need you to pay the processing fees and taxes up front, which is $2,400. You can pay by gift card or wire transfer. This is time-sensitive."
Or it arrives as a letter with an official-looking check (which will bounce), asking you to cash it and send back a portion to cover fees.
Why you know it is fake
Real sweepstakes do not charge fees to claim. Any fees are handled by the prize company itself, before you receive anything.
Real lottery winnings cannot require an advance payment. This is illegal. The IRS handles taxes on your own return, not at the source.
You cannot win a sweepstakes you did not enter. If you have no memory of entering Publisher's Clearing House, it is because you did not.
Real prize notification arrives by certified mail or in person. Publisher's Clearing House famously shows up at your door with a giant check. They do not call.
Foreign lotteries are illegal for Americans to participate in. A Spanish or Canadian lottery "prize" is always a scam.
What to do
Hang up, delete the email, or throw out the letter.
Do not send any money, ever. No fee. No taxes. No processing charge. No shipping. Nothing.
Do not cash suspicious checks. If a check arrives that you were not expecting, especially with instructions to send money back, do not cash it. The check will bounce, and you will owe your bank the money you sent.
Report the scam. ReportFraud.ftc.gov.
If they have your name and address, consider a credit freeze. They may try other scams on you.
A special case: the fake check scam
One common variation: you receive a real-looking check for, say, $5,000. Instructions say to cash it, keep $1,000 for yourself, and wire $4,000 back for "fees and taxes."
What happens: you cash the check, your bank temporarily credits the $5,000 to your account, you wire $4,000 out. A week or two later, the original check bounces. Your bank reverses the $5,000 credit. You are out $4,000, the scammer has your money, and you are responsible to the bank.
Never cash a check from someone you do not know. Never send money from a deposit you have not fully verified cleared (which takes 2-3 weeks, not 2-3 days).
If you already sent money
Call your bank immediately.
File at ReportFraud.ftc.gov.
Tell a family member.
Be extra cautious for the next few months. Scammers share lists of people who have already paid, and you may get targeted more.
If you do play real sweepstakes
Real sweepstakes exist. Publisher's Clearing House is real, as are state lotteries and various manufacturer giveaways. A few rules for safe participation:
Only enter ones you find yourself, not ones that contact you first.
Never pay to enter a contest. "No purchase necessary" is the law in the US for legitimate sweepstakes.
Keep your entries to reputable names you already trust.
If you win something real, they will tell you how taxes work, not ask for them up front.
The sweepstakes scam works by offering something wonderful that turns out to require a small payment. Any time money is asked of you before you receive a prize, it is always a scam.