How does a lottery or prize notification scam work?
Lottery scams falsely inform victims they have won a prize in a draw they never entered, then charge escalating fees to claim a payout that never arrives.
Last reviewed: 10 June 2026
Explanation
The contact arrives by email, letter, text, or social media: you have been selected as a winner in a sweepstake, international lottery, or corporate promotion. The prize amount is stated precisely to make it feel real. You did not enter anything, but the message explains this is a random selection or goodwill promotion. Branding from real companies or national lottery organisations is often borrowed without permission.
To 'claim' your prize you must pay a processing fee, insurance, tax, or customs charge. The amount is kept small relative to the stated prize to make it feel worth the gamble. After payment, the prize requires another fee to clear a hold. Each payment triggers a new requirement. The prize is always just one more payment away.
Variants include gift card prizes requiring 'activation fees', competition wins requiring 'delivery insurance', and car giveaways requiring 'registration and transfer fees'. Some scams operate a two-tier approach where a small genuine prize (a supermarket voucher) is sent first to establish credibility before a larger fraudulent prize claim is presented.
No legitimate lottery or prize draw ever requires the winner to pay a fee in advance. Real taxes on legitimate winnings are deducted from the prize, or the winner pays them to the tax authority directly — not to the lottery organisation.
Common red flags
- You are told you won a competition you did not enter
- Any fee is required before the prize is released
- The notification arrives from a free email address or lacks official contact details
- The prize amount is oddly specific or enormous
- You are asked to keep the win secret or respond quickly before the prize expires
- Branding of real organisations is used but the contact details do not match official channels
What to do now
- Do not pay any fee — if it is real, no legitimate prize requires advance payment
- Verify directly with the organisation supposedly running the lottery using contact details from their official website
- Report the notification to your national consumer protection authority
- If you shared banking details, contact your bank immediately
- If a cheque was sent as 'partial payment', do not deposit it — it is likely fraudulent
- Block and report the sender on the platform where you were contacted
Frequently asked questions
Can a real lottery notify winners by email or text?
Legitimate national lotteries do contact winners, but they never ask for payment to claim a prize. Verify any win by contacting the lottery through its official website directly.
What if I already paid a fee and now they want another?
Stop paying. Each additional fee is confirmation the entire prize notification is fraudulent. The first fee will not be recovered by paying a second.
Why do scammers send physical letters or cheques?
Physical mail adds an air of legitimacy and bypasses email spam filters. Fake cheques exploit the banking system's clearing delay — the cheque looks real but bounces after you have already sent the 'fee'.