You’re probably used to getting email, phone, telemarketing, and other common scams daily. And while these scams are among the most common, don’t let them distract from the fact that scams are everywhere.
Some might argue that playing the lottery is a scam in and of itself (considering the chances of winning are so low). But actual lottery scams are common — affecting more people now than ever.
Learn how to spot common lottery scams and what you can do to protect yourself the next time you buy that Mega Millions ticket.
What Are Lottery Scams?
Lottery scams are a tactic that criminals use to try to gain access to your personal information, banking, and monetary amount info in particular. Lottery scams can take a few different forms, but one of the most common is a sweepstakes scam.
With these, scammers might claim that you’ve won a random drawing for a certain amount of prize money. They might claim that you’re a lottery winner, even if you haven’t entered a lottery at any given point in the first place. Sweepstake scams might also lure you with a physical prize, like a new car or shares of a vacation property.
Con artists and fraudsters also commonly pawn fake or expired lottery tickets for a “discounted” price to get your cash. This is another less common form of lottery scamming, but still one to look out for.
What Are Some Signs of a Scam?
There are usually three indicators that can make it clear whether you’re dealing with a legitimate or a fake lottery. These include:
- Requiring payment for your prize: Real prizes are free and do not require you to make a down payment or a payment for “shipping and handling.” If an individual asks you to pay processing fees to claim a prize, don’t do it — especially over wire transfer or through gift cards. This makes it harder for FBI personnel to track where the money went.
- Requiring financial information: No legitimate lottery or sweepstakes will ever ask for your bank account numbers or credit card numbers to claim a prize. If anyone asks for this information, it is a scam.
- They say paying increases your odds of winning: Real sweepstakes are free, and winning is entirely by luck. Only a scammer would ask you to pay to increase your odds of winning a prize — as this practice is illegal for legitimate sweepstakes and lottery games.
What Are Some Ways Scammers Trick You?
Scammers use many different tactics to get you to give them the information they’re getting at. Don’t fall for their tricks:
Using Recognizable Names and Organizations
Talented scammers are likely to pretend to be government organizations or other groups that seem reputable. Often, they have apparently official websites (which, in reality, are fake) to add credibility to their scheme. However, no real lottery or sweepstakes will ever contact you directly to claim a prize.
Sending Messages Through Email or Text
Sometimes, scammers send enticing links to your device to get you to click on them. Often, these contain malware services that work to steal your private information and download malware onto your device.
Creating a Sense of Urgency
Scammers often use fear tactics to make it seem like a time sensitivity or limited-time offer requires you to act immediately. They don’t want you to be able to evaluate what’s happening. Take a deep breath and think through the situation whenever you receive a message from someone you don’t know.
Saying You Won a Foreign Lottery
U.S. citizens cannot play the lottery in a foreign country, so don’t trust anyone who asks you to break the law.
As a rule of thumb, if you’re unsure about sweepstakes or lottery companies sending you a prize notification, search online to see if you can find any information on them. You can look up the organization's name alongside “complaint” or “scam” to see if anyone else has been affected by them.
How Can You Avoid Lottery Scams?
The best way to avoid a lottery scam is to understand how a real lottery or sweepstake works. If you play the Powerball or Mega Millions, there is no way for the federal government to be able to track you down if you win. So if anyone reaches out to you claiming that you’re a lottery winner or that you’ve just won a lottery jackpot, it’s not legitimate.
Additionally, real sweepstakes are free and will never ask you to pay any money to play or increase your chances of winning. Contest promoters also need to tell you certain things before you can enter, such as mentioning that entering is free, the odds of winning, and how you’d redeem a prize. So if an authentic sweepstakes promoter calls you, they’d be legally required to tell you these things.
And if you get sweepstakes in the mail, they must say that you do not have to participate or that participating is entirely voluntary. They cannot say you’re a winner unless you’ve won the drawing.
Note that even if you do enter a legitimate contest, promoters do have a right to be able to sell your information to advertisers. So if you sign up for one, you might need to be prepared for promotional mail, telemarketing calls, or spam emails and texts.
Skills Contest vs. Lottery
In a contest of skills, you can win prizes or money by participating in a game requiring skill rather than luck. This might include answering trivia, completing an obstacle course, or solving puzzles. Carnival games are a great example of a game of skill that can legally ask you to pay before playing.
Scammers pretending to be a game of skill can be more challenging than those pretending to be sweepstakes companies or lottery promoters. Generally, a skills contest will never pressure you into playing, and they won’t tell you that paying more increases your ability to win. If you receive messages from a skills contest, read up on the company before entering.
What Should You Do If You Gave Money to a Scammer?
If you accidentally give money to a scammer, the first thing to do is stay calm and don’t panic. This happens to the best of people, and scammers can be super sneaky. Plus, there are ways you might be able to recoup your losses.
First, did you give the scammer money through a credit or debit card? If so, freeze the card immediately and contact your bank. Tell them the transaction was fraudulent and ask them to reverse it to give you your money back. You can contact the wire transfer company if you send money through a wire transfer.
For electronic transfers through an app like Venmo, getting your money back can be a bit more challenging since these services are usually not insured. With that said, you can contact the company and ask them to reverse the payment.
You’ll also want to report the scammer to decrease the likelihood of something similar affecting somebody else. You can notify them through the Federal Trade Commission by clicking this link and filling out the online form. You can also contact your state attorney general and the US Postal Inspection Service if your fraudulent documents come in the mail.
What Are Dos and Don’ts of a Lottery Scam?
If you suspect you’re being targeted by a scam or about to enter a sweepstake, you must know some things to do and not to do.
Do:
- Read everything that you receive carefully.
- Hang up on cold calls claiming to be from well-known contests.
- Carefully check your odds of winning, and don’t enter contests that do not disclose this information.
- Read the fine print on a legitimate contest form to ensure you understand the rules for playing, how to redeem a prize, and the chances of winning.
- Be wary. An FTC survey found that individuals willing to take risks were three times more likely to fall victim to sweepstakes scams.
Don’t:
- Pay fees to claim a prize, or pay money thinking it will improve your odds.
- Provide personal or financial information to anyone.
- Believe in social media messages claiming to be from celebrities or influencers.
- Call numbers with 876, 809, or 284 area codes — these are from Caribbean countries that have become hotbeds for scams and fraud.
In Conclusion
Lottery scams have become increasingly popular and are just as effective now with the rise of social media and text messages. No legitimate sweepstakes or lottery will ever contact you directly, and they certainly will not ask you to pay money upfront before being able to claim your prize.
If you’re a victim of a scammer, you can report them to the FTC and try to recoup your losses by reaching out to your bank or credit card company. You can also avoid scams in the first place by knowing their tactics and knowing what a legitimate contest looks like.
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