What Is Sweepstakes and Lottery Fraud?

Sweepstakes and lottery fraud occurs when scammers contact victims claiming they’ve won a prize or lottery, often requiring an upfront payment to claim the prize. These scams exploit excitement and trust to steal money or personal information.

How Do They Work?

Scammers typically:

• Claim the victim has won a contest (they likely they never entered).
• Request fees for taxes, processing, or shipping to claim the prize.
• Use official-sounding names or fake credentials to appear legitimate.
• Disappear after receiving the payment or personal details.

Examples of Sweepstakes and Lottery Fraud

Sweepstakes and lottery frauds often deceive individuals with promises of unexpected winnings. Below are common examples:

• Foreign Lottery Scams: Victims receive an email claiming they’ve won a large sum of money in a foreign lottery. The scammer demands an upfront "processing" fee for the prize, often requesting payment via gift cards, like Greendot Moneypack cards. After receiving the card numbers, they steal the funds.
• Phony Sweepstakes Wins: A scammer contacts a victim claiming they've won a sweepstakes but must pay taxes or shipping fees upfront to receive the prize. Once the payment is made, the scammer disappears, and the prize never materializes.
• Fake Prize Offers: Scammers send fake emails claiming the recipient has won a prize from a well-known company but require payment to claim it. Victims end up paying without receiving any rewards.
• Impersonating Legitimate Sweepstakes Organizations: Fraudsters pose as reputable organizations, claiming the victim has won a sweepstakes they didn’t enter. The scammer then pressures the victim to pay fees or provide personal information to receive their "winnings."

How to Avoid Sweepstakes and Lottery Fraud

• Be skeptical of unsolicited notifications of winning a contest.
• Never pay upfront fees to claim a prize.
• Verify the legitimacy of the contest through official channels.
• Avoid providing personal or financial information to unknown sources.

Category

Elderly-Targeted Scam