SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years
You’ve Won the Lotto!
Say you hear or read the words: “You’ve won the Lotto!” What will you do with your winnings?
Who wouldn’t be excited to win a prize, sweepstakes, or lottery (lotto)? But…did you actually win? And how do you know?
Sweepstakes, prize, and lottery frauds are among the top scams people report to the Federal Trade Commission and the sizes of the losses are similar to romance scams.
What Is A Lotto Scam?
A lotto (lottery) or sweepstakes scam is a type of financial fraud in which scammers (criminals) deceive victims by promising them a large sum of money in exchange for a small fee or personal information. The scammers often pretend to be representatives of a well-known lottery or sweepstakes company to appear legitimate.
Surprisingly, Jamaica and the Dominican Republic seem to be the world headquarters for this type of scam. But criminals from China to India to Brazil to Africa engage in these crimes too.
Types Of Lotto Scams
There are several common types of lottery scams that scammers use to deceive victims. Here are some of the most typical ones:
- Advance fee scams: This is one of the most common lottery scams, where scammers tell victims that they have won a lottery but need to pay an advance fee to receive the winnings. The scammer may claim that the fee is for taxes, processing, or handling charges.
- Fake check scams: In this type of scam, the scammer sends a check to the victim, claiming that it’s their lottery winnings. The check is usually for a large amount, and the scammer asks the victim to deposit the check and then send them a portion of the money back. However, the check is fake, and once the victim sends the money, they discover that the check has bounced.
- Email and text message scams: Scammers send emails or text messages to victims, claiming that they have won a lottery. They ask the victim to reply to the message with their personal information or to click on a link that takes them to a fake website where they can enter their details.
- International lottery scams: In these scams, scammers claim that the victim has won a foreign lottery and ask them to pay fees to claim the winnings. The scammer may also ask the victim to travel to a foreign country to collect the prize, but once they arrive, they find that there is no lottery and they have been scammed.
- Winning number scams: In this type of scam, scammers call victims to tell them that they have won a lottery but need to provide their winning numbers to claim the prize. The scammer may then use the numbers to access the victim’s bank account or steal their identity.
How These Loto & Sweepstakes Scams Work:
The scam typically begins with an email, phone call, or letter informing the victim that they have won a large sum of money in a lottery or sweepstakes, even though they never entered it. The scammer will then ask the victim to pay a small fee, usually for taxes or administrative costs, in order to claim the prize. Alternatively, they may ask for personal information, such as bank account or credit card details, in order to process the winnings.
Once the victim pays the fee or provides their personal information, the scammers disappear and the victim never receives the promised winnings. In some cases, the scammers may even ask for more money or information, claiming that there are unexpected fees or complications.
If the scammers sent a fake check to the victim and they deposited it, usually sending a portion to the scammers afterward, the victim will then be liable for whatever they withdrew and sent to the scammers, plus bank fees. And this was a bad check, it is usually a violation of law too!
The Impact On Victims Of Lotto Scams
Remember, these scams usually start with a call or message that says you’re a winner. (obviously a lie.) They say to get the so-called prize you have to send money or click somewhere to give your information. Don’t. The most recent FTC data shows people reported losing $301 million to this type of fraud. That’s an average loss of $907 per person.
The impact on victims can be devastating, both financially and emotionally. They may lose a significant amount of money, and the personal information they provided may be used for further fraudulent activities. Victims may feel embarrassed or ashamed about falling for the scam, and it can damage their trust in others.
What To Know About Real Contests and Prizes
Plenty of contests are run by reputable marketers and non-profit organizations. But there are some things to know before you drop in a quick entry or follow instructions to claim a prize.
- Real sweepstakes are free and by chance. It’s illegal to ask you to pay or buy something to enter or to increase your odds of winning.
- Contest promoters might sell your information to advertisers. If you sign up for a contest or a drawing, you’re likely to get more promotional mail, telemarketing calls, or spam.
- Contest promoters have to tell you certain things. If they call you, the law says they have to tell you that entering is free, what the prizes are and their value, the odds of winning, and how you’d redeem a prize.
- Sweepstakes mailings must say you don’t have to pay to participate. They also can’t claim you’re a winner unless you’ve actually won a prize. And if they include a fake check in their mailing, it has to clearly say that it’s non-negotiable and has no cash value.
A special note about skills contests. A skills contest — where you do things like solve problems or answer questions correctly to earn prizes — can ask you to pay to play. But you might end up paying repeatedly, with each round getting more difficult and expensive, before you realize it’s impossible to win or just a scam. Skills contests can leave contestants with nothing to show for their money and effort.
Avoiding Lotto & Sweepstakes Scams
Remember there are also legitimate contests and prizes that follow the law and give real prizes. So how do you know the difference?
One question to consider is: did you enter the sweepstakes or play the lottery? If not, you absolutely didn’t win. And here are other ways to spot and avoid prize scams:
- Don’t pay to get a prize. Real prizes are free. Anyone who asks you to pay a fee for “taxes,” “shipping and handling charges,” or “processing fees” to get your prize, is a scammer. Stop and walk away.
- Don’t give your financial information. There is absolutely no reason to ever give your bank account or credit card number to claim a prize. If anyone asks for it, it’s a scam.
- Don’t give your personal information. Scammers hope you’ll click on links that will take your personal information or download malware on your device. Delete the message without clicking on the links and don’t respond.
Did You Pay A Scammer?
| Did you pay with a credit card or debit card? | Contact the company or bank that issued the credit card or debit card. Tell them it was a fraudulent charge. Ask them to reverse the transaction and give you your money back. |
| Did a scammer make an unauthorized transfer from your bank account? | Contact your bank and tell them it was an unauthorized debit or withdrawal. Ask them to reverse the transaction and give you your money back. |
| Did you pay with a gift card? | Contact the company that issued the gift card. Tell them it was used in a scam and ask them to refund your money. Keep the gift card itself, and the gift card receipt. |
| Did you send a wire transfer through a company like Western Union or MoneyGram? | Contact the wire transfer company. Tell them it was a fraudulent transfer. Ask them to reverse the wire transfer and give you your money back.
|
| Did you send a wire transfer through your bank? | Contact your bank and report the fraudulent transfer. Ask them to reverse the wire transfer and give you your money back. |
| Did you send money through a money transfer app? | Report the fraudulent transaction to the company behind the money transfer app and ask them to reverse the payment. If you linked the app to a credit card or debit card, report the fraud to your credit card company or bank. Ask them to reverse the charge. |
| Did you pay with cryptocurrency? | Cryptocurrency payments typically can be recovered but this will be done by your local police or the U.S. Secret Service. |
| Did you send cash? | If you sent cash by U.S. mail, contact the U.S. Postal Inspection Service at 877-876-2455 and ask them to intercept the package. To learn more about this process, visit USPS Package Intercept: The Basics.
If you used another delivery service, contact them as soon as possible. |
Now You Know!
Do not response to stranger phone calls or messages, especially about a lottery or sweepstakes!
Do You Need Support?
Get It Now!
SCARS provides the leading Support & Recovery program for relationship scam victims – completely FREE!
Our managed peer support groups allow victims to talk to other survivors and recover in the most experienced environment possible, for as long as they need. Recovery takes as long as it takes – we put no limits on our support!
SCARS is the most trusted support & education provider in the world. Our team is certified in trauma-informed care, grief counseling, and so much more!
To apply to join our groups visit support.AgainstScams.org
We also offer separate support groups for family & friends too.
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Important Information for New Scam Victims
- Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
- Enroll in FREE SCARS Scam Survivor’s School now at www.SCARSeducation.org
- Please visit www.ScamPsychology.org – to more fully understand the psychological concepts involved in scams and scam victim recovery
If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org
If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines
A Note About Labeling!
We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!
A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
Statement About Victim Blaming
Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.
These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.
Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org
Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.
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