Scam Alerts

A Real Prize Never Asks You to Pay First

By Marcus Delgado / November 5, 2026 / Updated November 8, 2026

Woman at home looking closely at a paper slip with a skeptical expression

The Federal Trade Commission (FTC), the U.S. government agency that protects consumers, gives one plain rule about prizes. If someone says you have won and asks you to pay money, or to share your bank, card or Social Security number to collect it, that is a scam. Real prizes are free. This guide explains the warning signs, how to check a prize notice safely, what to do if you have already paid, and where to report it. The facts come from FTC pages, including an alert published on October 26, 2026 about scammers who borrow the names of charities and sweepstakes.

Key takeaways

A real prize never requires a fee, so any request for money is your signal to stop.
Legitimate sweepstakes are free and decided by chance. Charging you to enter, or to improve your odds, is not allowed.
Caller ID, a famous name or a professional-looking letter proves nothing, because the FTC says these can be faked.
If you already paid, contact the company that handled the payment right away. The FTC says the sooner you act, the better your chance of getting money back.
Report every prize scam, even if you lost nothing, at ReportFraud.ftc.gov.

How a prize scam usually works

The FTC says these scams begin with a call, email, text, letter or social media message saying you have won a sweepstakes, lottery or prize. The trouble starts when you are asked to pay something, or to hand over financial or personal information, before you can collect.

The money is often given a respectable label, such as taxes, shipping, processing or customs. The FTC points out that real prizes are free, so none of these fees is genuine. Some messages also contain a link, and the FTC warns that clicking can install harmful software on your device.

This guide describes patterns only, not the wording scammers use. The main signs the FTC lists, with a safe response to each, are below.

Warning sign	What the FTC says	Safe response
You must pay to receive a prize	Real prizes are free; invented fees are common	Do not pay. Stop all contact.
You are asked to pay to improve your odds	Sweepstakes are free and chance-based; charging to boost your odds is illegal	Do not pay.
Bank, card or Social Security number requested	No legitimate prize needs this	Do not share it. Delete the message without clicking links.
A government agency name	The government will not call to demand money for a prize; made-up official-sounding names are common	Hang up. Look up the real agency yourself.
A foreign lottery win	U.S. citizens are not permitted to play foreign lotteries	Ignore it.
Pressure to act now	Urgency is meant to stop you thinking clearly	Take your time. Talk to someone.
A check that asks you to send part back	The check can bounce after the bank first credits it, and you owe the difference	Do not deposit it or send money back.
Payment by wire, payment app, cash, gift card or crypto	Hard to trace and reverse	Refuse.

Familiar names can be faked

The FTC’s October 26, 2026 alert says scammers may pose as a real charity, or one with a similar name, and claim you have won a charity sweepstakes, sometimes saying it is because you once donated. Real charities do run sweepstakes, so the name alone tells you nothing. The alert says scammers may use the name in calls, social media ads and other messages.

Two more points from the FTC:

Caller ID can be faked. It may show the name of a government agency or a company you know.
The top search result may not be honest. The alert warns that paid ads can lead to impostor websites, so look beyond the first results when you research a contest or charity. Search its name with words such as “complaint,” “review” or “scam.”

How real sweepstakes work

Knowing the rules makes false offers easier to spot. According to the FTC:

A real sweepstakes is free to enter and decided by chance.
A promoter who phones you must say that entry is free, what the prizes are worth, your odds and how to claim.
Mailings must say no payment is needed, and may not call you a winner unless you won. Any enclosed check must be marked non-negotiable, with no cash value.
Skills contests, where you solve puzzles or answer questions, may charge entry fees. The FTC cautions that repeated paid rounds can make winning almost impossible.

If you already paid or shared information

Do not feel embarrassed. These scams are built to work on careful people. The FTC’s page on what to do after a scam was dated June 2026 when we read it. Act quickly, and start with the company that handled your payment, using a number from your card, your bank’s website or your app, not one a caller gave you.

How you paid	First step (per the FTC)
Credit card	Tell the card company right away and ask for a refund.
Debit card	Contact your bank or credit union immediately and ask for a refund.
Wire transfer	Tell the wire company at once that you were tricked and ask for your money back.
Gift card	Call the issuer, say the card number and PIN were taken, and ask for a refund. Keep the card and receipt.
Payment app or bank transfer	Report it to the app or your bank and ask for a reversal.
Cryptocurrency	Contact the exchange or crypto machine operator, report fraud and ask for a reversal. Crypto has fewer protections.
Cash sent by U.S. mail	Call the U.S. Postal Inspection Service at 1-877-876-2455. For a fee, it may intercept an undelivered package.

That FTC page says nothing specific about checks, so if you deposited one, call your bank and explain. If you gave out personal details, the FTC advises these steps:

If a scammer used your Social Security number, report it at IdentityTheft.gov and follow the recovery plan it creates. If you are unsure, follow the steps at IdentityTheft.gov/databreach.
If a login still works, change that password and any other account using it, and turn on two-factor authentication (a second check, such as a code sent to your phone).
If you let a scammer control your computer, update your security software, run a scan, delete anything it flags, change your passwords and ask the device maker or someone you trust for help.

Where to report

Reporting helps officials build cases and spot trends. The FTC lists these places:

The FTC, at ReportFraud.ftc.gov.
Your state attorney general and local consumer protection office, found through the directories at naag.org and USA.gov.
The U.S. Postal Inspection Service, at uspis.gov/report, if the offer came by mail.
IdentityTheft.gov, if the scammer used your personal information.

If you are 60 or older, you can also call the National Elder Fraud Hotline, run by the U.S. Department of Justice: 833-FRAUD-11 (833-372-8311), Monday to Friday, 10:00 a.m. to 6:00 p.m. Eastern Time. It is free, and case managers help callers with reporting. Its page does not say it recovers money, and it warns that scammers pretend to be hotline staff. Never give a Social Security number or send money to someone who calls claiming to be from it.

The FTC’s report on older consumers, issued October 19, 2026, says reported fraud losses for people 60 and over rose from about $600 million in 2020 to about $3 billion in 2025. Older adults, it adds, are more likely than younger adults to report losing money to prize, sweepstakes and lottery scams. It gives no dollar figure for that type of scam.

A checklist before you reply to any prize notice

Did I enter this contest? If not, be suspicious.
Am I being asked to pay anything, however small? If yes, stop.
Am I being asked for a bank, card or Social Security number? If yes, stop.
Have I looked the company up using a number or website I found myself?
Have I told a family member or friend before doing anything else?

Frequently asked questions

The notice has my correct name and address. Does that make it real?

No. The FTC says promoters may sell your information, and that scammers borrow real company names. Having your details is not proof.

Is it ever normal to pay a fee to collect a prize?

No. A real sweepstakes prize is free. Skills contests may charge entry fees, but the FTC warns the costs can grow.

I clicked a link or gave out a number. What now?

Follow the steps in the section on paying or sharing information, above. If your Social Security number was involved, use IdentityTheft.gov.

Can I get my money back?

Sometimes, but no one can promise it. The FTC says the sooner you act, the better your chances, whatever the payment method. Cards carry federal protections for unauthorized use, while cryptocurrency has fewer protections.

Before you decide

When a prize message arrives, you do not have to answer it. Pause, do not pay, and check through contact details you found yourself. Urgency is part of the pattern. Talk it over with someone you trust, and report it. If money has already gone, call the company that handled the payment today. For questions about your own situation, speak to your bank, a lawyer or a consumer protection office.