Prize Notification Scams via Wire Transfer
How fake lottery and prize notification scammers extract escalating wire transfer fees from victims by promising a large cash prize that never materialises.
Part of: Prize Notification Scams
Last reviewed: 1 June 2026
Prize notification scams are among the oldest forms of advance-fee fraud, but wire transfer versions persist because international bank wires are the payment method that most convincingly mimics a legitimate financial transaction. The formality of wire instructions — bank name, routing number, SWIFT code, beneficiary name — makes the fee request feel like an official financial process.
Victims often believe they are dealing with a genuine financial institution or government lottery body, particularly when the wire destination is a named bank in a recognised country.
How this scam works on Wire Transfer
An email or letter informs the recipient they have won a substantial prize from an international lottery, sweepstake, or corporate promotion — typically one they did not enter. To claim the prize, a series of fees must be wired: tax clearance, processing fee, insurance bond, or legal documentation costs.
Each wire is followed by a new fee requirement. The prize amount shown on fake documentation grows over time, maintaining the victim's motivation. Some operations provide fake bank statements showing the prize funds 'on hold' pending the final fee, which is invariably the largest.
Contactability escalates — phone calls, WhatsApp messages, and even video calls with 'prize officials' are used to maintain pressure and overcome scepticism.
Common red flags
- Notification of a prize from a lottery you did not enter
- Wire transfer required to cover tax, processing, or legal fees before prize release
- Each wire payment followed by a new fee requirement
- Official-looking documents with non-matching fonts, incorrect grammar, or inconsistent branding
- Request to keep the prize confidential until funds are received
How to protect yourself
- You cannot win a lottery you did not enter — any such notification is fraudulent
- Legitimate lottery winnings are never subject to advance fee payments
- Do not wire money to receive a prize under any circumstances
- Consult your bank's fraud team before making any wire based on a prize notification
- Block all contact from the organisation claiming to be the prize issuer
How to report it
- Report to your national fraud service — in the US, the FTC at reportfraud.ftc.gov
- Report to your bank if a wire was made
- Report to the FBI IC3 at ic3.gov if the operation has a US connection
Frequently asked questions
Why do prize scammers insist on wire transfers rather than other payment methods?
Wire transfers are chosen because they are irreversible once processed, cross-border, and carry the visual credibility of a formal banking transaction. Unlike gift cards or peer-to-peer apps, a wire transfer does not immediately signal 'scam payment' to victims, making it easier to justify as a legitimate fee payment.