A lottery or prize scam happens when someone tells you that you've won money, a prize, an inheritance, a grant, a refund, or a sweepstake — then asks you to pay a fee or hand over personal details before you can receive it.
How it happens
You get an email, message, letter, or call saying you've won a large sum of money or a valuable prize. The scammer asks for tax, a handling fee, a processing charge, delivery costs, or your bank details, so they can "release" the win. If you pay, further fees usually follow.
Western Union and PayPal both list lottery and prize scams among the most common. PayPal warns that a message asking you to pay a handling fee to collect a prize is usually a scam — a genuine prize should never require payment to receive it.
Warning signs
Be cautious if: you didn't enter the competition, the contact is unexpected, you're asked to pay before you receive anything, the prize is unusually large, or you're asked to keep the win secret.
How to protect yourself
- Don't pay any fee to receive a prize.
- Verify the organisation through official sources you find yourself, not contact details from the message.
- Treat any message that pushes you to act quickly, or asks for your bank details to avoid losing the prize, as a warning sign.
A genuine prize should never require payment to release it.
If you think you've already sent money
- Stop making any further payments.
- Save everything: messages, emails, payment details, and any documents you were sent.
- Contact us, if an Xe transfer was involved.
- Report it to your bank or payment provider, and to your local authority.
When you contact us, use our Help Centre.