# Powerball and Lottery Scams: Red Flags to Know

> How Powerball and lottery scams work, the red flags the FTC warns about, what real lotteries never ask for, and what to do if you've been targeted or already paid.

Source: https://www.todaypowerball.com/blog/lottery-scams-to-avoid · Published: 2026-10-11 · Publisher: TodayPowerball (independent; not affiliated with any lottery)

If someone contacts you to say you've won Powerball or another lottery, and especially if they ask you to pay something to collect, it's almost certainly a scam. Real prizes are free to claim, real lotteries don't ask for fees, and nobody can win a drawing they didn't enter. The Federal Trade Commission's short version: "Real prizes are free."

This guide explains how big the problem is according to FTC data, the most common lottery and sweepstakes scams, the warning signs to watch for, and what to do if a scammer has already reached you.

## The one rule that stops most lottery scams

Powerball's [official FAQ](https://www.powerball.com/faqs) says lotteries will never ask you to pay a fee to collect a Powerball prize. The [FTC](https://consumer.ftc.gov/articles/fake-prize-sweepstakes-and-lottery-scams) says the same about prizes in general: if you have to pay a "tax," "shipping," "processing fee" or "customs duty" to receive a prize, it's a scam.

That rule covers a lot of ground, because nearly every lottery scam ends the same way: you're asked to send money first. If you remember nothing else from this article, remember that a legitimate lottery takes nothing from you before paying you.

### "But I really do owe taxes on a prize"

Scammers like the word "taxes" because real winners do pay them. The difference is how. A real lottery withholds federal (and sometimes state) tax out of the prize itself before it pays you, then reports it to the IRS. You never wire, mail or gift-card tax money to a lottery to unlock a prize. Our [Powerball taxes guide](https://www.todaypowerball.com/blog/powerball-taxes-explained) explains how real withholding works.

## How common are lottery and prize scams?

The FTC tracks consumer reports in its Consumer Sentinel Network. In its most recent full annual data book, the [Consumer Sentinel Network Data Book 2024](https://www.ftc.gov/system/files/ftc_gov/pdf/csn-annual-data-book-2024.pdf) (published March 2025), the category "Prizes, Sweepstakes and Lotteries" ranked sixth among fraud categories.

| FTC figure for 2024 | Prizes, Sweepstakes and Lotteries |
|---|---|
| Fraud reports | 97,350 |
| Share of reports with a money loss | 22% |
| Total reported losses | $351 million |
| Median loss per person who lost money | $1,000 |

A median loss of $1,000 means that half of the people who reported losing money to a prize scam lost more than that. The chart below puts that figure next to the other categories in the FTC's top six fraud categories for 2024.

```chart
{
 "title": "Median reported loss in the FTC's top six fraud categories, 2024",
 "labels": ["Imposter scams","Online shopping","Business and job","Investment","Internet services","Prizes, sweepstakes, lotteries"],
 "format": "usd",
 "series": [
  {"label":"Median loss","kind":"histogram","values":[800,130,2250,9196,300,1000]}
 ],
 "caption": "Source: FTC Consumer Sentinel Network Data Book 2024 (March 2025), Top 10 Fraud Categories table. Medians are among reports that included a money loss."
}
```

Investment scams stand far above everything else, but prize, sweepstakes and lottery scams have a higher median loss than imposter scams, online shopping problems and internet-service complaints. In other words, a typical prize-scam victim who pays loses a meaningful sum, often through a series of "fees" that keep growing. What the chart does not show is the true size of the problem. The FTC notes that its data book is based on unverified reports that people chose to file, not a survey, and many victims never report at all. The category also covers all prizes and sweepstakes, not just Powerball.

## Common lottery and sweepstakes scams

### 1. "You've won!" for a lottery you never entered

You get a call, text, email or letter saying you've won a big lottery prize, sometimes Powerball by name. You never bought a ticket for that drawing, or you don't remember entering anything. That's the giveaway: you can't win a drawing you didn't enter.

Even if you did buy a Powerball ticket, the lottery doesn't know who you are. A paper ticket is anonymous until you bring it in to claim it. Powerball's FAQ also says lotteries won't contact you by email or phone about a prize unless you entered an official promotion or contest. Real Powerball winners find out by checking their own ticket.

### 2. Fake jackpot winners on social media

After a big jackpot, impersonators set up social media accounts using a real winner's name or photos and promise to share the money with anyone who follows, messages or "registers." A North Carolina Education Lottery warning, republished on powerball.com, described an impersonator offering a $4 million "donation" in exchange for a $500 deposit. Powerball's FAQ also calls Facebook notices claiming that Powerball is giving away money "false and fraudulent."

Real jackpot winners don't hand out money to strangers on social media, and they never ask for a fee first.

### 3. Foreign lottery "winnings"

You're told you've won a lottery in another country. According to the FTC, it's illegal for U.S. citizens to play a foreign lottery, and these "wins" are a common scam setup. Powerball is sold only through participating U.S. lotteries; see [which states sell Powerball](https://www.todaypowerball.com/blog/which-states-sell-powerball) for the current list.

### 4. Fake checks

The scammer sends a realistic-looking check for part of your "winnings" and asks you to deposit it and send some money back to cover fees. The check later bounces, often after your bank has made the funds available, and you're responsible for the money you sent. The FTC lists this as a classic prize-scam pattern.

### 5. Government or "official" impersonators

Scammers often pose as a government agency or an official-sounding organization. The FTC warns about invented names like the "National Sweepstakes Bureau" and notes that scammers may impersonate real agencies, including the FTC itself. No federal agency oversees or pays lottery prizes; each state lottery pays its own winners.

### 6. Pay to improve your odds

Some offers promise better odds, "guaranteed" winning numbers or a secret system if you pay. The FTC says real sweepstakes are free and winning is by chance. For Powerball, every combination has exactly the same chance in every drawing, and no software, pattern or paid service can change the 1 in 292,201,338 jackpot odds.

### 7. The stranger with a "winning ticket"

In person, a stranger may claim to hold a winning ticket they can't cash themselves, and offer to sell it to you at a discount or ask you to put up money as "good faith." The ticket is fake or altered, or the money simply disappears. Only a lottery retailer's terminal or a lottery office can confirm a ticket, and you should never pay a stranger for one.

### 8. "International Powerball" winnings

Since July 21, 2026, Powerball has also been sold in the United Kingdom, through Allwyn, and UK sales feed the same jackpot. Expect scammers to use that news. A message saying you've won "UK Powerball" or "International Powerball" follows the same rules as any other prize notice: if you didn't buy a ticket for that drawing, you didn't win, and no real lottery charges a fee to pay you. U.S. players buy and claim through their own state or territory lottery.

## Red flags at a glance

| Red flag | Why it matters |
|---|---|
| You must pay to collect | Real lotteries never charge a fee to claim a prize |
| Payment by gift card, wire transfer, payment app, cash or crypto | The FTC says scammers use these because it's hard to track where the money went |
| You "won" something you didn't enter | You can't win a drawing without a ticket or entry |
| Pressure to act now or keep it secret | Urgency stops you from checking with someone else |
| Requests for your bank account, credit card or Social Security number by phone, text or email | The FTC says there's no reason to give these to someone promising a prize |
| A check arrives with instructions to send part back | A classic fake-check scam |
| Foreign lottery or "international sweepstakes" | Playing a foreign lottery is illegal for U.S. citizens, per the FTC |

## What a scam message looks like, step by step

Here is a made-up example that combines tactics the FTC describes, to show how quickly the pressure builds. It isn't a real message.

1. **The hook.** A text says: "Congratulations! Your number was selected in the Powerball Mega Draw. You've won $2.5 million. Reply YES to claim."
2. **The "official."** A caller says they work for a national lottery bureau, gives you a claim number and reads back your address to seem legitimate.
3. **The fee.** You're told federal tax or a "release fee" of $1,800 must be paid before the money can be wired to you, by gift card or a wire transfer.
4. **The escalation.** After you pay, a new problem appears: an insurance fee, a customs charge, a "currency conversion" cost. Each one is a little bigger.
5. **The silence.** Once you stop paying, or run out of money, the calls stop.

Every step breaks a rule from this guide. You can't win a drawing you didn't enter, no federal agency pays lottery prizes, taxes are withheld from real prizes rather than paid upfront, and gift cards and wires are payment methods the FTC flags as scam tools. The earlier you spot any one of these, the less you lose.

## Helping an older relative or friend

Anyone can be targeted, but someone who lives alone or doesn't know how lotteries pay winners may have no one to double-check a message with. If you're worried about someone, a calm conversation usually works better than a warning.

- **Share the one rule.** "A real prize never costs money to collect" is easy to remember and covers nearly every version.
- **Agree on a check-in.** Ask them to call you, or their state lottery's number from its official website, before sending money to anyone about a prize.
- **Watch for signs.** Frequent gift-card purchases, new "friends" who call often, unusual wire transfers or secretive behavior around the phone can all point to an ongoing scam.
- **Skip the blame.** People who have been scammed often hide it out of embarrassment, which makes it harder to stop. The FTC encourages people to tell friends and family about prize scams so others can avoid them.

## How a real Powerball prize is paid

Knowing the real process makes fakes easier to spot:

1. **You check your own ticket** against official results on powerball.com or your state lottery's site.
2. **You go to the lottery**, not the other way around. Small prizes are paid at retailers; larger ones go through the state lottery in the state where you bought the ticket.
3. **You fill out an official claim form** from your state lottery's website or office and show ID.
4. **Taxes are withheld from the prize** for larger wins. You never send tax money in advance.

Our step-by-step guide on [how to claim a Powerball prize](https://www.todaypowerball.com/blog/how-to-claim-a-powerball-prize) covers each stage, including state deadlines.

Note that real claims do require your Social Security number at some point, because the lottery has to report larger prizes to the IRS. The difference is that you provide it on an official claim form you got from the lottery yourself, not to someone who reached out to you.

## What to do if you've been targeted

**If you haven't paid anything:** stop responding. Don't call back numbers they gave you, click links or "verify" information. If you want to be sure, look up your state lottery's phone number yourself and ask.

**If you've already paid or shared information,** act quickly. The FTC says the sooner you act, the better.

- Contact the company you used to pay (your bank, gift card company, wire transfer service or payment app) and ask whether the payment can be reversed.
- If you shared your Social Security number or account details, visit IdentityTheft.gov for a recovery plan.
- Report the scam to the FTC at ReportFraud.ftc.gov.
- Report it to your state attorney general and local consumer protection office.
- If the offer came by mail, the FTC suggests reporting it to the U.S. Postal Inspection Service.

Be cautious of anyone who then offers to "recover" your money for a fee. That can be a second scam aimed at people who've already lost money.

## Frequently asked questions

### Does Powerball call or email winners?

No. Lotteries don't know who holds a winning paper ticket, and Powerball says lotteries won't contact you by email or phone about a prize unless you entered an official promotion or contest.

### Is it ever legitimate to pay a fee to receive a lottery prize?

No. Powerball says lotteries will never ask you to pay a fee to collect a Powerball prize. Taxes on real prizes are withheld from the winnings, not paid in advance.

### Are social media giveaways from Powerball winners real?

Treat them as scams. Impersonators routinely copy real winners' names and photos, and Powerball calls Facebook notices about Powerball giving away money false and fraudulent.

### Can I buy Powerball tickets from a foreign website?

Powerball is sold through participating U.S. state and territory lotteries, and the FTC warns that playing a foreign lottery is illegal for U.S. citizens. Buy only from licensed retailers or your state lottery's own official app or website where offered.

### What if the message uses a real lottery's name or logo?

Scammers often copy real logos and names, including state lotteries and Powerball itself. Don't use any phone number, link or email in the message. Look up your state lottery's contact details yourself and ask them directly.

### How much do people lose to lottery and prize scams?

According to the FTC's Consumer Sentinel Network Data Book 2024, people reported $351 million in losses to prize, sweepstakes and lottery fraud in 2024, with a median loss of $1,000 among those who lost money.

### Where do I report a lottery scam?

Report it to the FTC at ReportFraud.ftc.gov, to your state attorney general, and to your state lottery if the scammer used its name.

## The bottom line

Lottery scams rely on excitement and urgency. Slow down and apply the simple test: if you have to pay to get a prize, there's no prize. Check results yourself, claim only through your state lottery, and never send money, gift cards or account details to anyone who contacts you about a win. And if lottery play itself is causing stress or money problems, free, confidential help is available at 1-800-MY-RESET (1-800-697-3738).