Lottery and Sweepstakes Scams — You Cannot Win a Contest You Never Entered

Edward Almost Lost Everything

Edward, a 72-year-old retired teacher from Ohio, got a phone call one Tuesday afternoon. The caller said he had won $750,000 from Publishers Clearing House. All he needed to do was pay a $500 "processing fee" to release his winnings.

Edward was thrilled. He had seen the PCH commercials on television for decades. It felt real. The caller even knew his full name and address.

But something felt off. His daughter happened to visit that evening, and when Edward mentioned the call, her face went pale. She knew right away — it was a scam.

Edward was lucky. Thousands of seniors every year are not. According to the Federal Trade Commission, Americans lost over $300 million to lottery and sweepstakes scams in recent years. And adults over 60 are the most targeted group.

Let us walk through exactly how these scams work so you never fall for one.

How Lottery Scams Work

Every lottery scam follows the same basic formula. Once you understand the pattern, you will spot them instantly.

Step 1: The exciting news. You receive a call, letter, email, or text telling you that you have won a huge prize. It could be a lottery, a sweepstakes, or a drawing.

Step 2: The catch. Before you can collect your winnings, you must pay something first. They call it a "processing fee," "tax payment," "insurance cost," or "shipping charge." The amount is usually between $200 and $5,000.

Step 3: The squeeze. Once you pay, they come back asking for more. There is always another fee, another tax, another step. They keep squeezing until you run out of money or realize it is a scam.

Step 4: They disappear. Your "winnings" never arrive. The scammers vanish. Your money is gone.

Here is the truth that destroys every lottery scam in one sentence: You cannot win a contest you never entered. That is the golden rule. Remember it.

The Publishers Clearing House Scam

This is the most common sweepstakes scam targeting seniors, and it is devastatingly effective. Scammers pretend to be from Publishers Clearing House because older adults recognize and trust the brand.

How the real PCH works:

You must enter their sweepstakes yourself (online or by mail)
Winners are notified in person by the PCH Prize Patrol with cameras rolling
PCH will never ask you to pay fees to claim a prize
PCH will never ask for your bank account or Social Security number
PCH will never call you and ask for gift cards

How the fake PCH scam works:

You get an unsolicited phone call, email, or letter
They say you have won millions of dollars
They ask you to pay fees by wire transfer, gift cards, or cryptocurrency
They pressure you to act immediately and keep the "win" secret
They may send a fake check that looks convincing

If someone calls claiming to be from Publishers Clearing House and asks for money, hang up immediately. That is not PCH. That is a criminal.

Foreign Lottery Scams

Another common variant is the foreign lottery scam. You receive a letter or email telling you that you have won a lottery in another country — usually the United Kingdom, Australia, Spain, or the Netherlands.

The letter often looks official, with government seals and legal language. It may reference a real lottery organization by name. But here is what you need to know.

It is illegal for US residents to participate in foreign lotteries by mail or phone. So even if a foreign lottery existed with your name on it, you could not legally collect the money. The entire thing is fake from start to finish.

These scams often arrive as physical letters in your mailbox, which makes them feel more legitimate than email. Do not let the fancy letterhead fool you. Throw it away.

Email and Text Lottery Scams

Your inbox is another favorite hunting ground for lottery fraud. These scam emails often look like they come from well-known companies or government agencies.

Common email lottery scam tactics:

Subject lines like "CONGRATULATIONS! You have been selected!" or "CLAIM YOUR $1,000,000 PRIZE"
Fake logos from Google, Microsoft, Apple, or Amazon
A link that takes you to a phishing website designed to steal your personal information
Attachments that contain malware or viruses

Text message versions are growing fast too. You might receive a text saying "You have won a $500 Walmart gift card! Click here to claim." That link leads to a fake website that harvests your data.

Never click links in unexpected prize notifications. If you did not enter a contest, you did not win one. Delete the message and move on.

7 Instant Red Flags of a Lottery Scam

Print this list and keep it by your phone. If you hear or see any of these, you are dealing with a scam.

1. You never entered. This is the biggest red flag of all. If you did not buy a ticket or submit an entry, there is no prize.

2. They want money upfront. Legitimate lotteries and sweepstakes never require you to pay fees before collecting winnings. Real taxes are deducted from your prize — you do not pay them in advance.

3. They demand secrecy. Scammers tell you not to tell anyone about your "win." They do this because they know your family and friends will recognize the scam.

4. They want gift cards. No legitimate organization collects payments through gift cards. If someone asks you to buy gift cards and read the numbers over the phone, it is always a scam. Always.

5. There is extreme urgency. "You must act within 24 hours or lose your prize!" Real sweepstakes give winners plenty of time to respond. Urgency is a pressure tactic designed to stop you from thinking clearly.

6. They send you a check. Some scammers mail you a fake check and ask you to deposit it, then wire back a portion for "taxes." The check bounces days later, and you lose the money you sent.

7. The caller ID looks real. Scammers can make any phone number appear on your caller ID. This is called "spoofing." Just because the caller ID says "Publishers Clearing House" does not mean it is real. Learn more about how scammers manipulate phone calls targeting seniors.

The Golden Rule to Remember

We said it before, and we will say it again because it is the single most powerful defense you have:

You cannot win a contest you did not enter.

Write it on a sticky note. Put it on your refrigerator. Tell your friends. If you remember nothing else from this article, remember that one sentence.

When someone tells you that you have won something, ask yourself one simple question: "Did I enter this?" If the answer is no — and it almost always will be — you know it is a scam.

What to Do If You Get a Lottery Scam Call

Here is your action plan, step by step.

If you receive a suspicious call:

Hang up immediately. Do not press any buttons. Do not engage.
Do not call back any number they give you.
Block the number on your phone.

If you receive a suspicious email or text:

Do not click any links or download any attachments.
Do not reply to the message.
Delete it right away.

If you receive a suspicious letter:

Do not call any phone numbers listed in the letter.
Do not send money, gift cards, or personal information.
Throw the letter away.

If you have already sent money:

Contact your bank immediately to try to stop or reverse the payment.
If you paid with a gift card, call the gift card company right away with the card number.
Do not feel embarrassed — these scams are designed by professionals to fool smart people.

How to Report Lottery Scams

Reporting scams helps protect other people from falling victim. Here is where to report.

Federal Trade Commission (FTC)

Online: ReportFraud.ftc.gov
Phone: 1-877-382-4357

FBI Internet Crime Complaint Center

Online: ic3.gov

Your State Attorney General

Search "[your state] attorney general consumer complaint" online

Local Police

File a report with your local police department, especially if you lost money

The Real Publishers Clearing House

If someone used the PCH name, report it directly to PCH at pch.com

Even if you did not lose money, reporting the attempt helps law enforcement track and shut down scam operations.

Stay Sharp, Stay Safe

Lottery and sweepstakes scams are not going away. If anything, they are getting more sophisticated with better technology and more convincing scripts. But the core trick never changes — and neither does your defense against it.

You cannot win something you did not enter. Full stop.

Share this article with friends and family. Talk about these scams openly. The more people know the warning signs, the harder it becomes for criminals to succeed.

If you found this guide helpful, read our complete guides on phone scams targeting seniors and how to spot scam emails for even more ways to protect yourself online and on the phone.