Financial Fraud
Lottery & Prize Scams
You are contacted and told you have won a large prize, but you must first pay a fee to cover taxes, shipping, or processing.
How It Works
- You receive an email, letter, or phone call congratulating you on winning a lottery, sweepstakes, or other major prize.
- The prize is substantial (e.g., millions of dollars, a luxury car).
- To claim your "winnings", you are required to pay a fee upfront.
- After you pay, the scammer may ask for more fees or disappear completely. The prize never existed.
Red Flags
- Being told you won a contest you never entered.
- Being required to pay a fee to receive a prize. Legitimate lotteries deduct taxes from the winnings.
- Pressure to make a decision quickly.
- Being asked to provide bank account details to "deposit" the winnings.
Prevention Tips
- You cannot win a lottery you did not enter.
- Never pay a fee to claim a prize.
- Do not give out your bank account or credit card information.
- If it seems too good to be true, it is.
Example Scenario
"An email with official-looking logos claims you have won the "International Powerball" and must wire $500 for "international tax processing" before your $2.5 million prize can be released."