Fake Lotteries & Scams

Lotteries In Depth

United States Lottery Scam Statistics 2020


$166 million total losses
116k fraud reports

10% of total losses

Source: 2019-20 Consumer Sentinel Report

Sections on this page
  1. What Are Lottery Scams?
  2. Red Flags of Lottery Scams
  3. Most Common Lottery Scams
  4. How to Beat Lottery Scams
  5. Fallen Victim to a Lottery Scam?

Lottery scams result in millions of Americans getting tricked by fraudsters seeking to take advantage of unsuspecting victims with promises of large cash prizes, goods, or services.

In a 2021 Better Business Bureau report, data showed that Americans lost around $227 million to fake sweepstakes, prize, and lottery scams. Typically, older adults (over the age of 55) are the primary targets for these types of scams, but regardless of age, anyone can fall victim to this type of con.

Learn how to avoid getting duped by lottery scams, what red flags to look out for, and how to recover your money (if possible).

What Are Lottery Scams?

A lottery scam, also known as lottery fraud, involves a thief trying to trick someone into paying them money or providing sensitive account information in order to access their supposed lottery winnings.

But after the victim provides what the scammer wants, they learn there’s no prize and the scammer disappears. The ultimate goal of a scammer is to make money, either directly from you or by selling your account information to someone else.

For example, a thief may steal your credit card information, quickly use it to make a purchase, then return the item for a refund or sell it to someone else. They may also sell your credit card information on the dark web to score a quick profit while minimizing their risk of getting caught.

Compare FREE Quotes for Car Insurance

Please enter your info below to get matched with providers.


Please enter a valid zip code
Currently Insured
Homeowner

Red Flags of Lottery Scams

There are several red flags to keep an eye out for to prevent a scammer from taking advantage of you. These include:

Winning a Sweepstakes You Never Entered

If you get a call that you won a sweepstakes or lottery that you don’t remember entering or know you didn’t, this is likely a red flag.

A Lack of Contest Information

Oftentimes, fake sweepstakes and lotteries will omit any fine print or details about the contest. If you can't find anything about the start and end dates, methods of entry, prize descriptions, legal disclaimers, and eligibility requirements, you may be dealing with a scam.

Paying Money to Claim the Prize

If you’re ever asked to pay anything at all in order to receive your prize, it may be a scam. This may even include receiving a partial payment check and getting asked to pay a fee for the remainder of the prize.

lottery scam
In this version of a lottery scam, you're asked to pay a fee to claim your prize. This is a big red flag.

Paying Money to Increase Your Chances

Anytime someone claims that making a payment increases the chance that you’ll win a lottery, this is lottery fraud. Authentic lotteries or sweepstakes give all players the same chance of winning based on purchasing equal numbers of tickets—or receiving them for free.

Asking For Your Banking Information

If you’re ever asked to provide financial information to claim a prize, it’s probably a scam. There’s no reason a legitimate lottery administrator needs your bank, credit card, or any financial banking information.

Most Common Lottery Scams

While there are a wide variety of lottery scams out there, but some are more common than others.

  • Foreign lottery scams involve victims being told they won a foreign sweepstakes and need to pay taxes and fees on it before being able to collect their winnings.
  • Government imposter scams involve con artists claiming to work for the government or a governmental agency, such as the Federal Trade Commission (FTC). They’ll say you’re entitled to a prize but need to pay a fee to claim the prize money.
  • Organization imposter scams involve a scammer posing as a well-known company or organization. They’ll say you won a prize but again must pay a fee in advance to claim it. In this lottery scam, the thief attempts to exploit your trust in that organization.
  • Underpayment scams involve the fraudster sending you a check for less than the amount you "won," and will ask you to pay a fee to receive the rest of the money. Even though the initial check is fake, this scam is effective because it can take the bank several days for the check to clear and be flagged as fake. By then, you’ll have given the scammer your money and they will be long gone.

How to Beat Lottery Scams

To beat lottery fraud, you should keep a few things in mind anytime someone reaches out—via phone, email, text, or regular mail—regarding money or prizes you’ve supposedly won.

Never Pay Money to Claim a Prize

A real lottery doesn’t require you to pay money to get your prize. In some cases, you may have to travel to pick up or claim the money, but you will never have to send a check, wire funds, or pay cash to get authentic lottery winnings.

Don't Deposit Partial Payment Checks

Sometimes scammers will send you a check with your partial winnings, with the promise of the full payment once you send a fee to the "contest sponsors." In most cases, this is a fake check that will bounce once it clears and you'll end up owing the bank that money. 

lottery scam
Publishers Clearing House won't ever send you a partial payment for your winnings, this is a red flag.

Beware of Lotteries that Pressure You to “Act Now”

Legitimate lottery winnings won’t require an instant response. If someone says you have to act quickly, they may be trying to fool you into making a rash, emotional decision based on a desire to get easy money. Even if there’s no money being asked for, whenever there’s pressure to provide any kind of information to claim your winnings, it’s probably lottery fraud.

Refuse to Participate in Foreign Lotteries

It’s illegal for Americans to play foreign lotteries or participate in sweepstakes hosted in another country, so you should always decline your “winnings,” if offered. The scammer may also be trying to take advantage of your unfamiliarity with the economics of a foreign country, hoping you believe people in that area have money that they can give away at will.

Don’t Respond to Emails About Lotteries

Responding to an email may seem like a relatively innocent step. But if the lottery is legitimate, there will be a real phone number, as well as information about the organization sponsoring it.

You shouldn’t respond via email—even to ask for more information—because the reply you get may have malware embedded in it. This could be in the form of a link you’re asked to click on or an attached file. The malware can then be used to spy on your device, grant access to your personal information, or provide a “backdoor” for a hacker to access your system later.

Never Give Out Your Financial/Banking Information

To prevent con artists from stealing your identity, you should never give out your personal information over the phone, via email, or text messages to anyone you don’t know or trust.

You should also double-check the validity of any website, such as a bank site, before entering any information. When sending any money online, be sure to only use sites that begin with “https://,” these are the most secure sites.

Fallen Victim to a Lottery Scam?

If you’ve fallen victim to lottery fraud, you should report it right away. The sooner you get information to the authorities, the more likely they will be able to either catch the thief or help you get your money back. Here are the steps you can take:

Finally, let your friends and family know, because the scammer may try to target them next

How to Get Your Money Back From Lottery Scams

In some instances, you may be able to get your money back after falling for a lottery or sweepstakes scam. If you paid via:

  • Credit card: You can let your credit card company know what happened and see if they are able to refund your money. You may be able to get some or all of your money back if the thief made an unauthorized transfer of funds from your bank account or an unauthorized purchase. Simply compile all your evidence, reach out to your bank, and explain the situation.
  • Wired Funds: You can reach out to the wiring company, tell them it was a fraudulent transaction, and ask them to reverse the wire transfer if it’s not too late.
  • Cash: If you sent cash through the mail or another courier service, contact them immediately. You’ll need to provide them with all the necessary information intercept the money before it reaches the scammer.

Scams Relating to Lotteries

Sort by:
Tips to Avoid Fake Lottery Tickets Being Sold as "Winners"
12 January 2022 |

Tips to Avoid Fake Lottery Tickets Being Sold as "Winners"

Always be wary of strangers trying to sell you "winning" lottery tickets that they can't cash in—they're more than likely trying to scam you out of hundreds of dollars.

Scams in Other Categories...
How to Avoid PayPal Shipping Label Scams: Top Tips
1 July 2022 |

How to Avoid PayPal Shipping Label Scams: Top Tips

PayPal is a convenient way to pay for online purchases and has a reputation for safety and security. But scammers still find a way to use PayPal to help them steal products.

PayPal Shipping Scams: Tips to Protect Your Money and Items
29 June 2022 |

PayPal Shipping Scams: Tips to Protect Your Money and Items

Scammers take advantage of PayPal's buyer protection program to scam sellers out of their money and items for sale.

Beware of Social Security Scam Calls and Robocalls

Beware of Social Security Scam Calls and Robocalls

Not every phone call from a government agency is legit, in fact, the majority of calls that have a "Social Security Administration" caller ID are actually from scammers.

How to Avoid CBD Scams & Buy the Right CBD Oils
27 June 2022 |

How to Avoid CBD Scams & Buy the Right CBD Oils

With many people opting for CBD products as a natural alternative to prescription drugs, it's important to know what to look for in CBD oils and other cannabinoids products.

WhatsApp Free Heineken Beer: A Father’s Day Scam
17 June 2022 |

WhatsApp Free Heineken Beer: A Father’s Day Scam

New WhatsApp scams are making the rounds in the lead-up to Father’s Day 2022—here’s what you need to know.

Beware of the Parcel Tracking Text Scam
16 June 2022 |

Beware of the Parcel Tracking Text Scam

Delivery companies like FedEx, USPS, and UPS are being impersonated in text messages instructing recipients to visit a scam website—here's what you need to know.

Beware of USPS Scam Text Messages—Don't Click the Link
13 June 2022 |

Beware of USPS Scam Text Messages—Don't Click the Link

Receive a text message about a USPS delivery? If it contains a link, it's a scam—don't click the link!

Fake Amazon Calls Expose Users to Phishing Attempts
6 June 2022 |

Fake Amazon Calls Expose Users to Phishing Attempts

If you receive a call from Amazon about suspicious activity on your account, it's likely a scam, and you should hang up immediately.

How to Beat "Amazon Prime Renewal" Phone Scams

How to Beat "Amazon Prime Renewal" Phone Scams

This scam starts with a recorded message about an early (or unwanted) Amazon Prime renewal. To 'cancel,' you will unknowingly be transferred to a scammer impersonating 'Amazon.'

Guides Relating to Lotteries

Sort by:
Spot & Avoid These 11 Common Facebook Messenger Scams

Spot & Avoid These 11 Common Facebook Messenger Scams

With every Facebook Messenger scam, the attacker is trying to steal from you—whether they’re after money, login credentials, or other personal information.

Guides in Other Categories...
How to Beat Social Security Scams & Keep Your Identity Safe

How to Beat Social Security Scams & Keep Your Identity Safe

With thousands of fake Social Security calls made every month, chances are these scammers have targeted you at one point or another.

Harley-Davidson Insurance: A Quality Option for All Motorcycle Riders
30 June 2022 |

Harley-Davidson Insurance: A Quality Option for All Motorcycle Riders

If you own a motorcycle, you can get coverage from a regular auto insurance company or through Harley-Davidson.

Types of Car Insurance: Everything You Need to Know
27 June 2022 |

Types of Car Insurance: Everything You Need to Know

Car insurance coverage is important, but it can be confusing, especially if you're new to having your own vehicle.

How to Buy a Used Car: Questions You Should Ask
23 June 2022 |

How to Buy a Used Car: Questions You Should Ask

Buying a used car can be stressful, but knowing what questions you should ask the seller can help you feel confident in your decision.

News Relating to Lotteries

Sort by:
News in Other Categories...
Roe vs. Wade Overturned: Abortion Rights in Your State

Roe vs. Wade Overturned: Abortion Rights in Your State

Find out what the overturning of Roe vs. Wade means for abortion rights in your state.

Searches for "COVID Vaccine 5G" Hit All-Time High, But Microchips Definitely Not in Vaccine
2 February 2022 |

Searches for "COVID Vaccine 5G" Hit All-Time High, But Microchips Definitely Not in Vaccine

The number of people searching for the term "COVID vaccine 5G" on Google has just hit an all-time high, but there's one way to be sure that there are no microchips.

Social Media: The New Favorite Amongst Scammers
1 February 2022 |

Social Media: The New Favorite Amongst Scammers

Social media platforms are possibly the most used tools in committing fraud, responsible for $770 million in losses.

Beware When Scanning QR Codes, Even for Menus
20 January 2022 |

Beware When Scanning QR Codes, Even for Menus

The FBI is warning Americans about a new scam circulating in the country involving fraudulent QR codes in public places.

$30M Worth in Counterfeit Goods Seized in Los Angeles
2 December 2021 |

$30M Worth in Counterfeit Goods Seized in Los Angeles

Fake Gucci, Chanel, and Louis Vuitton handbags and clothing were just some of the items found in a large shipment of counterfeit goods coming in from China.