Scam Alerts

A Prize Notice With a Payment Request Deserves a Hard Stop

By Priya Lindqvist / October 11, 2026 / Updated November 8, 2026

A message says you have won a prize. Before you can collect it, you are asked to pay a fee or to share bank or Social Security details. That request is the important part, and it is the moment to stop. The Federal Trade Commission (FTC), the national consumer protection agency, says real prizes are free. This guide explains how prize scams usually work, the warning signs, and the safe steps to take, including what to do if money has already gone out. It describes patterns only.

Key takeaways

The FTC lists fees for taxes, shipping, processing or customs as red flags, because real prizes are free.
Paying to “improve your odds” and giving bank, card or Social Security numbers to claim a prize are also warning signs.
To check a contest, find the company’s contact details yourself. Do not use the ones in the message.
If you have already paid, act quickly. Contact the payment company right away and report the scam at ReportFraud.ftc.gov.
The FTC’s October 2026 report says older adults are more likely than younger adults to report losing money to these scams. It is common, and no reason for shame.

What a prize scam looks like, and why it works

The contact can come by phone, letter, email, text message or social media. You are told you have won something, such as cash, a car, a trip or a lottery. The FTC says the caller or writer sounds eager for you to claim it. Then comes the catch. Before anything arrives, you are told you owe a fee, a tax or a customs charge. You may be asked for a credit card or bank account number, or asked to pay by cash, gift card, wire transfer or cryptocurrency.

AARP adds that these scammers often take their time. Some build a friendly relationship, much as a romance scammer does, so that you start to trust them. They rely on the excitement of imagined good fortune, and they may discourage you from talking with family or friends. Some pretend to be well-known sweepstakes companies or past winners.

According to the FTC, once you pay or share your details, you lose. No prize exists, and you will probably get more requests for money and more false promises. AARP, citing the FTC, says people reported losing $145 million to prize, sweepstakes and lottery scams in 2024, up by more than $18 million from 2023. AARP notes that the true figure is probably much higher, because fraud is widely underreported.

Warning signs at a glance

The table puts the signs listed by the FTC and AARP in one place. One sign is enough to stop. You do not need to find them all.

Warning sign	Why it matters
You must pay before you get the prize	The FTC says real prizes are free. Fees for taxes, shipping, processing or customs are red flags.
You are asked to pay to improve your odds	The FTC says legitimate sweepstakes are free and based on chance.
Bank, card or Social Security numbers are requested	A real prize does not need them. AARP warns that scammers may ask for them “to verify” you, which can lead to identity theft.
You won something you do not remember entering	AARP lists this as a warning sign.
The sender claims government backing or uses a known company’s name	The FTC says official-sounding and familiar names are common tactics.
You are pushed to act now	Both the FTC and AARP say pressure is part of the pattern.
You are invited to enter a foreign lottery	The FTC says this is illegal for U.S. citizens.

The hard stop: what to do

A hard stop means you do not act on any request until you have checked independently. These steps follow FTC and AARP advice.

Do not pay anything, and do not give out financial or personal details.
Do not reply and do not click any link. Hang up on cold calls claiming you have won.
Slow down. AARP says scammers push for quick action, and taking time helps you think clearly.
Talk with someone you trust. AARP says an outside view often reveals the scam.
Check the claim yourself, using the methods in the next section.
Keep the message, or a note of the sender’s details, and report it as described near the end of this guide. Do not pass on any link.

A simple household rule can help: an unexpected prize claim never leads straight to a payment.

Checking a claim without trusting the message

The FTC says to find the company’s contact information yourself rather than use what the sender gave you. That means a number from a bill or card, or the company’s own website. It also suggests searching the company or contest name with words such as “review”, “complaint” or “scam”. AARP gives these further checks:

For a lottery ticket you really bought, check it at a retailer, on the state lottery website or on its winning-numbers line.
Lotteries generally do not know who holds a winning ticket, so a surprise call about a win is suspicious. Online lottery players are the exception, as they are credited automatically.
Publishers Clearing House, AARP says, notifies winners in person or by mail.
A mailed contest should carry legal details such as start and end dates, how to enter, a description of the prize and disclaimers. Missing details are a red flag.

If you have already paid or shared information

The FTC advises acting as quickly as you can. Scammers favor wire transfers, payment apps, cash, gift cards and cryptocurrency because these are hard to trace and hard to reverse. The FTC’s page “What To Do if You Were Scammed” (dated June 2026) lists steps by payment method. Recovery is not guaranteed.

How you paid or what you shared	First step the FTC suggests
Credit or debit card	Contact the card company or bank right away, using the number on the card or its website or app. Say the charge was unauthorized or that a scammer tricked you, and ask for a refund.
Wire transfer	Report it to the wire company at once and ask for a refund.
Gift card	Contact the card issuer immediately, using the number on the back of the card. Keep the card and the receipt.
Payment app or bank transfer	Report the payment to the app, or to your bank or credit union, and ask them to reverse it.
Cryptocurrency	Contact the exchange or machine operator at once, then report to the FTC. The FTC warns that recovery can be hard.
Cash sent by mail	Contact the U.S. Postal Inspection Service at once. The FTC says a package not yet delivered may sometimes be stopped.
Social Security number	Go to IdentityTheft.gov for a recovery plan.
Online account password	Choose a new strong password, change it anywhere you reused it, and turn on two-factor sign-in.
Access to your computer or phone	Update or install security software, run a scan, and change your passwords. Ask the device maker or a trusted person for help removing anything harmful.

Reporting and helping others

Reporting helps even when money cannot be recovered, because the FTC says reports help investigators identify scammers and stop them. You can report in these ways:

Online at ReportFraud.ftc.gov, or by phone at 1-877-FTC-HELP (1-877-382-4357).
To your state attorney general and local consumer protection office.
To the U.S. Postal Inspection Service, if the promotion came by mail.
To the free AARP Fraud Watch Network Helpline at 877-908-3360, where trained fraud specialists can talk it through.

Pass the warning on. Many people recognize these scams, the FTC points out, but a friend or relative may not. When you talk with family, describe what the message asked for and why you paused.

Frequently asked questions

Can a real sweepstakes ask me to pay a fee?

The FTC says real prizes are free and lists fees for taxes, shipping, processing or customs as red flags. AARP adds that taxes on large lottery prizes are withheld automatically, so a demand that you send tax money first is a warning sign.

The notice uses a company name I know. Does that make it real?

No. The FTC says scammers use names that sound official or familiar, and AARP says pretending to be Publishers Clearing House is common. Look up the real contact details yourself.

Is it enough to ignore the message?

The FTC’s advice is not to respond and not to click links. Reporting is optional but useful.

I already paid. Is it too late?

The FTC says the sooner you act, the better. Contact the company that handled the payment right away, using the table above. No one can promise a refund.

Before you decide

If a message about a prize asks for money or personal details, treat it as a stop sign, not a puzzle to solve. Take the time you need, speak with a trusted person, and look up the real company yourself. If money has already gone out, call the payment company first and report the scam afterward.