It’s easy to get excited when you see a message claiming you’ve won big. Maybe it’s a lottery you don’t remember entering or a sweepstakes you vaguely recall signing up for. Before you celebrate, take a closer look. Scammers are using fake prizes to trick people into giving up personal information or sending money—and they’re getting more convincing by the day.

How These Scams Work

Fraudsters contact victims via mail, phone, email, or social media, claiming they’ve won a large cash prize, a car, or a vacation. The catch? To “claim” the winnings, you must first pay taxes, processing fees, or shipping costs. In some cases, scammers ask for banking details to “deposit” your prize, which gives them access to your accounts. Once the money or information is sent, the scammer disappears, and the prize never existed.

Common Red Flags

Watch for these warning signs:

  • You’re told you’ve won a contest you don’t remember entering.
  • You’re asked to pay fees or taxes upfront to receive your winnings.
  • The message pressures you to act quickly or to keep your prize a secret.
  • The call or email comes from a suspicious or overseas number.
  • You’re asked for personal or financial information to verify your identity.

If it sounds too good to be true, it usually is. Legitimate lotteries and sweepstakes never ask winners to pay fees or provide sensitive account details in advance.

What To Do If You’re Contacted

  1. Do not send money or share personal information. Never give out your Social Security number, bank account details, or credit card information to claim a prize.
  2. Verify the source. If the message mentions a real organization, look up their official website or contact them directly using a verified number—not the one provided in the message.
  3. Report it. You can report suspected scams to the Federal Trade Commission (FTC) at reportfraud.ftc.gov or to your state’s consumer protection office.
  4. Stay alert. Discuss these types of scams with family members and friends, especially older adults, so that they can recognize the warning signs.

Winning the lottery sounds exciting, but real winnings never come with strings attached. Scammers count on excitement and urgency to cloud judgment. Staying skeptical, taking a moment to verify, and protecting your information are the best ways to safeguard your money and maintain peace of mind.