Prize Notification Scams via Western Union
Scammers inform victims they have won a prize and demand Western Union transfers as mandatory fees before the winnings can be released.
Part of: Prize Notification Scams
Last reviewed: 1 June 2026
Prize notification scams pre-date the internet, and Western Union has historically been their favoured payment channel. The combination of an exciting promise — a large cash prize or luxury item — with a plausible-sounding 'release fee' creates a powerful emotional hook that persists even after repeated public warnings.
Western Union's global cash pickup network is ideal for scammers because it requires no bank account, operates across jurisdictions where enforcement is limited, and funds are available almost immediately once a transfer is picked up.
How this scam works on Western Union
A victim receives a letter, email, or phone call congratulating them on winning a lottery, sweepstakes, or competition they may or may not recall entering. To collect the prize, they must wire a 'processing fee,' 'taxes,' or 'insurance payment' via Western Union to an agent handling prize disbursement.
Following the initial payment, victims receive further requests: customs fees, legal release fees, or currency conversion charges. Each payment is framed as the final step before the winnings arrive, but winnings never materialise.
Some scammers send a fraudulent cheque for part of the 'prize' in advance, instructing the victim to deposit it and wire the fee from their own account. The cheque bounces days later, leaving the victim liable for the full wired amount.
Common red flags
- You won a lottery or prize you have no clear memory of entering
- Release of winnings is conditional on paying fees by Western Union first
- After each payment, another fee emerges before the prize can be sent
- A cheque arrives for part of the winnings with instructions to wire fees before cashing
- Official-looking documents cite overseas lottery commissions with unverifiable addresses
- Caller becomes aggressive or threatening if you question the process
How to protect yourself
- Understand that legitimate prize organisations deduct any applicable fees from winnings — they never ask you to pay upfront
- Never wire money to claim a prize, regardless of how official the accompanying documents appear
- Do not deposit cheques from unknown senders and then transfer funds based on apparent availability
- Verify any claimed lottery or sweepstakes through the sponsoring company's official public-facing website
- Alert elderly relatives, who are disproportionately targeted by mail-based prize scams
- Western Union funds picked up by a scammer are unrecoverable — prevention is the only protection
How to report it
- Report to the FTC and your national postal inspection service if the scam used the mail
- File a report with Western Union's fraud hotline at 1-800-448-1492
- Contact your national consumer protection agency with all documentation
Frequently asked questions
Why do scammers use cheques if they bounce anyway?
Banks make funds temporarily available before a cheque fully clears. Scammers exploit this float period — they instruct you to wire their 'fee' while the cheque appears to have cleared. When the cheque bounces days later, your wired funds are gone and your bank holds you responsible for the overdraft.