Fake Lottery and Sweepstakes Scams Explained!

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Summary:
Lottery scammers, predominantly located in Jamaica, contact unsuspecting people over the phone or the internet to notify them about winning a substantial amount of lottery money. The catch is, they need you to make some form of payment first. They claim that these payments are to be used for government taxes or some kind of delivery fee. Generally, the amount charged is small in comparison to the amount offered, which is why it lures in so many people. 

Please note: If lottery scammers are in possession of your personal information, identity theft may occur. How do scams lead to identity theft?

Jump to:
General information
Telltale signs
Lottery scam tactics
What to do if the lottery scammers call?
Lottery scam blacklist

General information

We’ve all fantasized about winning the lottery. What would you do with the millions from a Power Ball hit, or $1000 a day for the rest of your life? Most of us also realize that the odds of winning a lottery are less than being hit by lightning. But the lure of easy money is powerful, and scammers continue to get rich off their marks by convincing them they have won cash, cars, or other big-ticket items.

So, how does the scammer make his money with a fake lottery?

There are a number of ways but the most common is to require payment in advance to cover state transfer fees, sales tax, or any of a number of made up charges before the big check, automobile, or other prize can be delivered. The amounts requested are small compared to the value of the prize. What’s $200 to $500 dollars when you are getting $100,000 or a $95,000 Mercedes-Benz S Class?

Those small dollar amounts add up. According to the FTC victims paid lottery scammers $117 million in 2019!

Our investigations into Common Scams of 2023

Telltale signs of a lottery or sweepstakes scam

When you receive notification that you have won a lottery, there are a number of glaring telltale signs that you are the target of a scam. Here are a few of the most obvious.

• You are notified that you are the winner of a lottery that you didn’t enter.
• To collect your winnings or prize you have to first send a fee.
• Sweepstakes are different from lotteries. Lotteries typically require that you purchase a ticket to enter. Sweepstakes do not. In fact it is illegal to accept money or require the purchase of a product or service to enter a sweepstakes. If you are notified that you need to pay an administrative fee first, the sweepstakes is a scam.
• It is illegal to participate in a foreign lottery. If you are told you have won a Spanish, Irish, or other foreign lottery, it’s a scam. Period. There are no fees to pay to allow Americans to collect the winnings because the winnings would be illegal. In short, you cannot legally win a foreign lottery.

Known lottery scam tactics

Lottery scammers use many different methods to make contact with their targets including snail mail, email, SMS, phone, and social media sites like YouTube and the “messenger service” on Facebook. While the “prize” that has been “won” will vary, the pitch will always be the same. Send money in order to get money. Scammers will insist that you wire your money or use refillable gift cards like iTunes to make your payment. These forms of payment allow fast access to cash and are difficult to reverse.

Publisher’s Clearing House (PCH)

We have all received tons of mail and seen hundreds of TV ads promoting the PCH Sweepstakes involving fabulous prizes. Imagine how exciting it would be to have a representative from PCH call you and tell you you’ve won. They give you a tentative date that the Prize Patrol will arrive at your home, all they need is a registration fee to firm up the filming crew. Publisher’s Clearing House is a legitimate business and they do award the prizes, typically once each year. They never call winners in advance and they never require payment to process the prize. The scammer will paint an exciting mental picture and of course, it’s all just an effort to relieve you of your money.

Jamaican Mega Millions Lottery Scam

If you receive a phone call from a phone number that starts with 876, and the person on the line tells you that you have won the Mega Millions Jackpot (or maybe a car) in the Jamaican lottery, it’s a scam. They are going to ask for fees to transfer the money to the U.S. or duty costs for importing the car. The FTC says “just hang up.” They are swamped with complaints about people who are out a lot of money with this scam.

Facebook Lottery Scam

The FBI’s Internet Crime Complaint Center (IC 3) sites Facebook as the source of one-third of lottery scam complaints received. The victim is contacted by a Facebook “employee” via Messenger and advises they are a winner. They ask for an administrative fee, or interstate transfer fee before the prize can be released. The “employee” will have a fake Facebook profile showing Facebook as the employer. Messenger allows the scammer to engage with the target and more effectively deliver their pitch.

Our investigations into Common Scams of 2023

What to do if contacted by a lottery scammer

If you have fallen for a scam and sent money to collect your prize, you can pretty much kiss your dollars goodbye. That said, there are things you can, and should do if you have been contacted by a scam whether you sent money or not.

• If you have provided the scammer any personal information, i.e. bank account number, birth date, address, social security number, you are susceptible to identity theft. Contact your bank and close any accounts you have revealed. Consider purchasing an identity theft program to guard your data.
• Report the scam to the FBI IC 3, the FTC, and the platform (social media) that the scammer used to contact you.
• Expose the scammer to the public using this form

In summary, there are no legitimate lotteries or sweepstakes that require you to send money in order to receive a prize.

Do not send money or provide personal information to anyone you don’t know who claims you are a winner even if they say they represent a legitimate company or organization. Because there are so many scammers, and because there are so many ways for us to be contacted, it’s likely we will all receive an initial pitch. Don’t become a victim. Regardless of how tempting it is, just hang up, delete, and report lottery scams.

Attention: Consumers who have been contacted by lottery scammers could have had their personal information breached. TotalScam!™ highly recommends that consumers whose information has been breached obtain identity theft protection service immediately.

There are several companies that offer identity theft protection in the US. One of the most inexpensive options we were able to find is the protection offered by LifeLock. You can start your protection here.

Disclaimer: The information and opinions contained on this site are not endorsed by LifeLock. TotalScam!™ receives compensation from LifeLock. This helps support our scam prevention efforts.

General FAQ

Lottery Scam Blacklist

The following phone numbers, websites, and emails have been reported to us by the consumer. If you feel this information is incorrect, you may submit a request for removal or correction by contacting us using this form.

Our investigations into Common Scams of 2023