Asked to pay to claim a million-dollar prize? Don’t bet on it

Scammers sometimes make you think you’ve hit a stroke of good luck. But if your million-dollar cash prize letter comes with instructions to pay a small fee — maybe for taxes, reporting, or handling — it’s not luck. It’s a scam. If you pay, you’ll lose your money and find out there’s no prize. Can you spot a prize scam?

Scammers use the promise of a prize to steal your money or your personal information. They might say they’re from a well-known company like Publishers Clearing House and call, text, email, or message you on social media to say you’re eligible for prize money. But they’ll say you have to send them money first — maybe to pay a fee to release unclaimed money, for example. No real company will make you pay to claim a prize. Only a scammer will. Before responding, slow down and ask yourself these questions:

• What do others say? Search online and see what you find about the contest or company. Type the name with terms like “review,” “complaint,” or “scam.”
• Did anyone else get this message? While you’re checking online, see if others report getting the same message. If you got the offer by mail, look at the postmark on the envelope or postcard. A bulk rate means other people got the same offer.
• Did they ask me to pay or give sensitive personal information? If so, it’s a scam. There’s no reason to give your bank account or Social Security number to claim a prize. And only a scammer will insist you pay by wiring money through a company like Western Union or MoneyGram, using a payment app like Apple Pay, CashApp, PayPal, or Zelle, sending cash, or paying with gift cards or cryptocurrency to get your prize.

Share this alert with family and friends to help them avoid prize scams too. If you spot one, tell the FTC at ReportFraud.ftc.gov.