"You’ve won a prize": the fake sweepstakes call or text that asks you to pay

"You’ve won a prize": the fake sweepstakes call or text that asks you to pay

"Congratulations! You've been selected as the winner of a new iPhone." "You're our grand prize winner: $2.5 million and a new car." "Thank you for being a loyal customer: claim your $100 gift card." The message arrives by text, call, or email, and the excitement makes you want to believe it. But there's a simple rule: if you have to pay anything to receive a prize, it isn't a prize. Legitimate sweepstakes don't charge winners fees, taxes, or shipping upfront.

How does the fake prize scam work?

1. The announcement. You've "won" something: cash, a car, a vacation, an electronic device, or a gift card. Sometimes in a sweepstakes or lottery you never entered, sometimes as a "loyal customer" of a well-known brand or your phone carrier.
2. The small step. To claim it, you need to tap a link, fill out a form, or call a number.
3. The payment. There's always a cost: a "processing fee," "taxes," "customs," "insurance," or a small shipping charge of a few dollars by card.
4. The real goal. Sometimes they want the fee itself (often in gift cards or by wire transfer); more often, they want your card details, which they then use for bigger charges or to sign you up for a subscription you didn't ask for.
5. The repeat. If you pay once, new costs appear: "the prize is held at customs," "there's another tax."

A variant targets older adults with phone calls about a "foreign lottery" or a big-name sweepstakes, asking for repeated payments over months.

Why does it look believable?

• They use real brand names, logos, and official-sounding sweepstakes names.
• The amount requested is small compared to the prize, so it seems reasonable.
• They create urgency: "claim it within 24 hours or it goes to another winner."
• They may know your name or your carrier, taken from data breaches.
• The websites look professional, with countdown timers and fake winner testimonials.

What are the red flags?

• You never entered any contest.
• You have to pay a fee, taxes, shipping, or insurance to receive the prize.
• They ask for payment in gift cards, wire transfers, crypto, or by sending cash.
• They ask for bank or card details "to deposit the prize."
• The message comes from a personal number or a strange email address.
• The link points to an odd domain that isn't the brand's official site.
• They ask you to keep it secret "until the prize is delivered."

What should I do if they've just called or texted me?

1. Don't tap the link and don't call the number in the message.
2. Don't give your card number, bank details, or Social Security number.
3. If the brand is real, look up its official website or customer service number yourself and ask whether the promotion exists.
4. Delete the text and block the number. Forward the text to 7726 (SPAM) so your carrier can block similar messages.
5. If it's a call, just hang up.

What if I've already paid or given my card details?

1. Call your card issuer or bank immediately, using the number on the back of your card. Block the card and ask about disputing the charge.
2. Check your statements for unknown charges and subscriptions over the next few weeks.
3. If you paid with gift cards, contact the company that issued them right away with the card numbers and receipts.
4. If you shared personal information, follow the plan at IdentityTheft.gov.
5. Don't pay any more "fees." No additional payment will release a prize that doesn't exist.

Where do I report it?

• To the FTC at ReportFraud.ftc.gov.
• To the FBI's IC3 if you lost money online.
• If it arrived by mail, to the U.S. Postal Inspection Service through its reporting page.
• USAGov's scams and fraud page has more on reporting and common schemes.
• In NoCall: report the number in the spam numbers directory.

Frequently asked questions

But real prizes have taxes, don't they? In the US, prize winners may owe income tax, but they pay it to the IRS, not to the company that ran the sweepstakes and not before receiving the prize.

They said I'm a winner as a loyal customer of my phone carrier. Is that possible? Carriers do run promotions, but they don't text you links asking for card details to claim a prize. Check in your carrier's official app or by calling its customer service.

It only cost $2 for shipping. What's the harm? The harm isn't the $2: it's that they now have your card details. Many victims later find larger charges or recurring subscriptions.

In short

A prize you have to pay for isn't a prize. Don't tap, don't pay, and don't give card details: verify through the brand's official channel. If you already paid, call your bank and block the card. And report the number in the NoCall spam numbers directory so others don't fall for it.