Lottery and Sweepstakes Scams: Fake PCH Calls and Prize Fees

If someone says you won a sweepstakes, lottery or prize and then asks you to pay anything to collect it, it is a scam. The Federal Trade Commission (FTC) says it in one line: "If you have to pay to get your prize, it's a scam. Real prizes are free." A U.S. Postal Inspector says the same thing in a Postal Inspection Service announcement: "You don't have to pay to enter a sweepstakes or collect a prize." That holds whether the caller says they are from Publishers Clearing House, a "national sweepstakes bureau," the government or a foreign lottery.

Calls, letters, texts and social media messages about a win you never entered all work the same way: the prize does not exist, and every payment you make leads to a request for another. The FTC lists the usual excuses: a fee for "taxes," "shipping and handling charges," "processing fees," or "customs duties."

If you already paid or shared information: stop paying, stop answering the caller, contact the company you paid with (bank, card issuer, money transfer company, gift card company or app) using a number you look up yourself, and report the scam at ReportFraud.ftc.gov. The steps are below.

Information last verified on October 2, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers United States federal law and federal agency guidance on prize, sweepstakes and lottery scams: FTC consumer guidance, the Telemarketing Sales Rule (16 C.F.R. Part 310), the federal lottery statutes (18 U.S.C. §§ 1301 and 1302), the mail and wire fraud statutes (18 U.S.C. §§ 1341 and 1343), the sweepstakes mailing rules in 39 U.S.C. § 3001(k), and Justice Department prosecutions. State lottery, gambling and consumer protection laws are outside this page. Refund rights by payment method are covered on our money-back guide.

If you already paid or gave information

Speed matters. The FTC says: "No matter how you paid a scammer, the sooner you act, the better."

1. Stop paying. No further fee, tax or "release charge" will produce a prize. In one Justice Department case, a Jamaica-based scheme leader admitted he told victims they needed to send money for fees and taxes and "repeatedly contacted victims for as long as they could be persuaded to send additional money. No lottery existed and no victim ever received any winnings."
2. Call the company you paid with. Use the number on your card, the back of the gift card, or the company's official website, not a number the caller gave you. What you can recover depends on how you paid; our guide to getting money back after a scam walks through cards, bank transfers, payment apps, wires, gift cards, crypto and cash. See also gift card scams and Zelle and payment app scams.
3. Do not deposit a check that came with your "winnings," and if you already did, do not send any of it on. Tell your bank. The details are in the fake check section below.
4. If you gave your bank account, card number or Social Security number, go to IdentityTheft.gov for steps to protect your identity; the FTC points people there "If a scammer used your personal information." Our guide on what to do when a scammer has your information covers credit freezes and account protection.
5. Report it to the FTC, your state attorney general and, if the offer came by mail, the U.S. Postal Inspection Service. See the reporting section below.
6. Expect follow-up calls. People who paid once are often called again, sometimes by someone offering to "recover" the money for a fee. Our money-back guide explains recovery scams.

How to tell a real prize from a scam

The FTC names three signs of a prize scam, and each one is enough on its own:

• You have to pay to get the prize. "If you have to pay to get your prize, it's a scam. Real prizes are free."
• You have to pay to improve your odds. "If you have to pay to increase your odds of winning, it's a scam. Real sweepstakes are free and winning is by chance. It's illegal for someone to ask you to pay to increase your odds of winning."
• You have to give financial or personal information. "There's absolutely no reason to ever give your bank account or credit card number, or personal information like your Social Security number, to claim any prize."

The FTC also describes the tricks that make a fake win feel real:

If you want to check whether a notice is real, the FTC says to contact the real company using "contact information you found yourself," not contact information from the person who called you. Our page on phishing, smishing and vishing covers prize texts and emails that try to get you to click a link.

Fake Publishers Clearing House calls and letters

Publishers Clearing House (PCH) is a real sweepstakes company whose name prize scammers borrow, and the FTC has warned about PCH impostors in consumer alerts in 2022 and 2025. In a June 26, 2025 consumer alert, the FTC said: "Scammers often use names that sound like well-known sweepstakes or companies, like Publishers Clearing House (PCH) ... to trick you into trusting them."

The company's own position, stated on its scam prevention page (a company statement, read October 2, 2026, which PCH can change at any time):

"The real Publishers Clearing House will never call you or ask you to pay money to enter or claim a prize. No purchase or fee is ever required to enter or win."

PCH's page also says impostor scams "can come through phone calls, emails, letters, social media messages, or other channels," and that "we direct all consumers to file scam reports directly with the Federal Trade Commission (FTC)." In a June 28, 2022 alert about PCH impostors, the FTC said: "The real Publishers Clearing House says it will never ask you to pay a fee to collect a prize."

That FTC alert describes the two main ways the fake PCH scam takes money. In the first, you are told to pay fees and taxes, and "Typically you'll be asked to send money by Western Union or MoneyGram, or by getting a reloadable card or gift card." In the second, a realistic-looking fake check arrives and you are told to deposit it and send some of the money back. The FTC's advice: "Never send money to collect a prize, sweepstakes check, or lottery winnings. If you have to pay, it's a scam."

Watch out: if you want to check with the company, the FTC says: "Don't expect the person who contacts you to give the real contact information." Look it up yourself.

The real PCH's 2023 FTC case is a separate issue

Do not confuse impostor scams with a case the FTC brought against the real company. In June 2023, the FTC announced that Publishers Clearing House "has agreed to a proposed court order that will require it to pay $18.5 million to consumers." The FTC's complaint charged that the company used "dark patterns" to mislead consumers about how to enter its sweepstakes and "made them believe that a purchase is necessary to win or would increase their chances of winning." PCH agreed to settle the charges; the FTC's announcement describes them as charges, not court findings.

That case was about the real company's own website and marketing. It has nothing to do with someone who calls you pretending to be PCH and asking for a fee. If your complaint is about purchases from the real PCH, it belongs on a different track from an impostor report. The same FTC announcement warns: "Remember, the FTC never asks you to pay or share personal information to receive a refund."

Foreign lottery and Jamaican lottery scams

A message saying you won a lottery in another country, or offering to sell you tickets for one, is almost always a scam. The FTC says: "Messages about a foreign lottery are almost certainly from a scammer," and that if you buy a foreign lottery ticket, you can "expect many more offers for fake lotteries or scammy 'opportunities.'"

Is it illegal to play a foreign lottery?

The agencies state it briefly, and the statutes are narrower and more specific. Here is what each says:

• The FTC: "it's illegal for U.S. citizens to play a foreign lottery, so don't trust someone who asks you to break the law."
• The U.S. Postal Inspection Service: "If a lottery is based in a foreign country and conducted through the mail, it's illegal."
• 18 U.S.C. § 1301 makes it a federal crime, punishable by up to two years in prison, to bring lottery tickets into the United States "for the purpose of disposing of the same," to ship them by common carrier, or to carry them "in interstate or foreign commerce." It also covers lottery advertisements and lists of prizes, and anyone who "knowingly takes or receives" such material that was brought in or shipped that way.
• 18 U.S.C. § 1302 makes it a crime to knowingly mail lottery letters and circulars, lottery tickets, "Any check, draft, bill, money, postal note, or money order, for the purchase of any ticket," or lottery advertisements. The penalty is up to two years, and up to five years for a later offense.

Neither statute uses the word "play." This page does not say whether any particular reader broke a law, and we found no official source describing a person being prosecuted for having been targeted by a lottery scam. In the Jamaica-based case described below, the Justice Department said: "No lottery existed." If a caller asks you to pay money in connection with a lottery, for any reason, the FTC's rule applies: "If you have to pay, it's a scam."

What the Justice Department has done

Jamaica-based lottery fraud has drawn federal prosecutions, and the cases show how the scheme works:

• On January 27, 2025, a federal judge in Charlotte, North Carolina sentenced a Jamaican citizen to 84 months in prison and ordered $1,104,041.74 in restitution after he pleaded guilty to conspiracy to commit mail and wire fraud. He acknowledged that from approximately 2010 through at least August 2016 he led a lottery fraud scheme that targeted victims in the United States, and that he told victims "they needed to send money to pay fees and taxes on their winnings."
• On May 28, 2026, the Justice Department announced a 121-month prison sentence for a North Carolina man who ran "a seven-year scheme where he victimized millions of elderly Americans by selling their personal information to Jamaican lottery fraud scammers." He pleaded guilty in January 2026 to conspiracy to commit wire fraud.

The second case helps explain why the calls keep coming for some people: the personal information of older Americans has been sold to lottery scammers.

The fake check version

Many prize scams do not ask you to pay up front. They send a check instead. The FTC describes it: "Scammers send you a check and ask you to send some of the money back. If you deposit the check, it can take the bank weeks to figure out it's fake. In the meantime, the bank has to make the funds available to you, so it can look like the money is in your account. But once the bank finds out the check is fake, they'll want you to pay back the funds."

The FTC's PCH alert adds: "Never deposit a check and send back money, even if the funds appear in your account. That's a sure sign of a scam." Our guide to fake check and money mule scams explains why the money shows up in your account before the check bounces, and what that means for you.

What the law requires of a real sweepstakes

Knowing what a legitimate promoter must do makes a fake one easier to spot. Real sweepstakes and contests exist, and the FTC notes that "Plenty of contests are run by reputable marketers and non-profit organizations."

Telemarketing: the Telemarketing Sales Rule

When a seller or telemarketer runs a prize promotion by phone, the FTC's Telemarketing Sales Rule (TSR) sets disclosure duties. Under 16 C.F.R. § 310.3(a)(1), "Before a customer consents to pay" for goods or services, the seller or telemarketer must disclose:

"(iv) In any prize promotion, the odds of being able to receive the prize, and, if the odds are not calculable in advance, the factors used in calculating the odds; that no purchase or payment is required to win a prize or to participate in a prize promotion and that any purchase or payment will not increase the person's chances of winning; and the no-purchase/no-payment method of participating in the prize promotion ..."

and "(v) All material costs or conditions to receive or redeem a prize that is the subject of the prize promotion."

On an outbound sales call that offers a prize promotion, 16 C.F.R. § 310.4(d)(4) also requires the telemarketer to disclose "That no purchase or payment is necessary to be able to win a prize or participate in a prize promotion if a prize promotion is offered and that any purchase or payment will not increase the person's chances of winning. This disclosure must be made before or in conjunction with the description of the prize to the person called."

The TSR also bars misrepresenting "Any material aspect of a prize promotion including, but not limited to, the odds of being able to receive a prize, the nature or value of a prize, or that a purchase or payment is required to win a prize or to participate in a prize promotion" (16 C.F.R. § 310.3(a)(2)(v)).

The FTC summarizes the rule this way: "If they call you, the law says they have to tell you that entering is free, what the prizes are and their value, the odds of winning, and how you'd redeem a prize."

Two limits matter. The TSR is written around the telemarketing of "goods or services." Its definition of "prize promotion" includes telling a person they have won a "purported prize" (16 C.F.R. § 310.2(cc)), but no text we reviewed says whether a fee demanded for a prize that does not exist counts as a purchase of goods or services. And the TSR itself creates no refund process; the FTC enforces it, and the Telemarketing Act allows a private federal lawsuit over a pattern or practice of violations only if the amount in controversy exceeds $50,000 in actual damages for each person affected, brought within 3 years after discovering the violation (15 U.S.C. § 6104(a)). Scammers are also covered by the federal fraud statutes described below.

Mail: sweepstakes mailing rules

Federal postal law sets rules for sweepstakes sent by mail. Under 39 U.S.C. § 3001(k), a "sweepstakes" is "a game of chance for which no consideration is required to enter." Sweepstakes mail is nonmailable if it does not disclose "in the mailing, in the rules, and on the order or entry form, that no purchase is necessary to enter such sweepstakes," or if it "represents that an individual is a winner of a prize unless that individual has won such prize." A "facsimile check" in a mailing must say on the check itself that it "is not a negotiable instrument and has no cash value."

The FTC's plain-English version: "Sweepstakes mailings must say you don't have to pay to participate. They also can't claim you're a winner unless you've actually won a prize."

Skills contests are different

A skills contest, where you solve puzzles or answer questions to win, is not a sweepstakes. The FTC says a skills contest "can ask you to pay to play," but warns that "you might end up paying repeatedly, with each round getting more difficult and expensive, before you realize it's impossible to win or just a scam."

What laws do prize scammers break?

A scammer who never had a prize to give is running a fraud, and the federal fraud statutes reach it:

• Wire fraud, 18 U.S.C. § 1343, covers anyone who, having devised "any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises," uses wire, radio or television communication in interstate or foreign commerce to carry it out. The maximum is 20 years in prison, or 30 years if the violation affects a financial institution or involves federal disaster or emergency benefits.
• Mail fraud, 18 U.S.C. § 1341, covers the same kind of scheme carried out through the Postal Service or a private or commercial interstate carrier. The maximum is also 20 years, with the same 30-year exception.

Both Justice Department cases above were brought as conspiracies to commit these crimes. A criminal case is brought by the government, not by you, and a conviction does not guarantee repayment. If you want to know whether you have a civil claim against anyone, our guide on when a lawyer helps after a scam explains the options and their limits.

Where to report a prize or lottery scam

The FTC's list for prize scams:

• The FTC at ReportFraud.ftc.gov. Spanish speakers can report at ReporteFraude.ftc.gov.
• Your state attorney general and your local consumer protection office.
• The U.S. Postal Inspection Service "If the prize promotion came in the mail." Reports go through uspis.gov/report. The Postal Inspection Service says: "If you've been affected by a lottery scam and the U.S. Mail® has been used in any way, we want to help."
• IdentityTheft.gov "If a scammer used your personal information."

If the scam reached you online, the FBI's Internet Crime Complaint Center at ic3.gov also collects complaints in its Lottery/Sweepstakes/Inheritance category. If you or someone you know is 60 or older and has been a victim of financial fraud, the Justice Department's National Elder Fraud Hotline is 1-833-FRAUD-11 (1-833-372-8311); see our elder fraud guide. Our full guide on where to report a scam lists what each agency does with a report.

How common are lottery and sweepstakes scams?

• FBI IC3, 2025 Annual Report. IC3 received 5,623 complaints in its Lottery/Sweepstakes/Inheritance category in 2025, with reported losses of $194,147,851. IC3 defines the category as one where "An individual is contacted about winning a lottery or sweepstakes they never entered, or to collect on an inheritance from an unknown relative." The figure includes inheritance scams, so it is not a lottery-only count.
• FTC, Protecting Older Consumers 2024-2025 (December 2025). The FTC found that in 2024 older adults were "nearly three times (172%) more likely to report a loss on a prize, sweepstakes, or lottery scam" than younger people. When the contact method was a phone call, prize, sweepstakes and lottery scams made up 15% of older adults' reported dollar-loss cases, behind business impersonation (40%) and government impersonation (23%).

These are different datasets and should not be added together. Both count only what people chose to report.

Related guides

• Scams and fraud: your rights and where to get help
• How to get money back after a scam
• Where to report a scam
• Fake check and money mule scams
• Gift card scams
• Elder fraud
• Government impersonation scams
• Romance scams

Last updated: October 2, 2026.

This article provides general legal information about United States federal law and agency guidance as verified on October 2, 2026. It is not legal advice. For your specific situation, contact the payment company you used, the agency named above, or a lawyer licensed in your state.

Frequently Asked Questions

Do you have to pay taxes or fees to collect a sweepstakes prize?

If someone asks you to pay to get a prize, the FTC says it's a scam: real prizes are free, and a fee for taxes, shipping and handling, processing or customs duties means you are dealing with a scammer.

Does Publishers Clearing House call winners?

PCH says on its scam prevention page that the real Publishers Clearing House will never call you or ask you to pay money to enter or claim a prize. That is a company statement; PCH directs people to report impostors to the FTC at ReportFraud.ftc.gov.

Is it illegal to play a foreign lottery?

The FTC says it is illegal for U.S. citizens to play a foreign lottery. The federal statutes (18 U.S.C. 1301 and 1302) make it a crime to bring in, carry, ship or mail lottery tickets, lottery advertising, and payments for tickets. A foreign lottery win you never entered is a scam.

I deposited a prize check and sent some money back. What now?

Tell your bank right away and do not send any more. The FTC warns that once the bank learns the check is fake, it will want you to pay back the funds. Report the scam at ReportFraud.ftc.gov.

Can I get my money back from a lottery scam?

It depends on how you paid, and money sent by wire, gift card, crypto or cash is hard to recover. Contact the payment company immediately using a number you look up yourself; our money-back guide explains the rules by payment method.

What must a legitimate sweepstakes tell me?

A telemarketer running a prize promotion must disclose the odds, that no purchase or payment is required to win or participate, and how to enter without paying (16 C.F.R. 310.3(a)(1)(iv)). Sweepstakes mail must say no purchase is necessary (39 U.S.C. 3001(k)).

Can a contest legally charge me to enter?

A real sweepstakes cannot; the FTC says it is illegal to ask you to pay or buy something to enter or to increase your odds. A skills contest can charge, but the FTC warns players can pay round after round and end up with nothing.

Where do I report a fake lottery or sweepstakes call?

Report it to the FTC at ReportFraud.ftc.gov, your state attorney general, and the U.S. Postal Inspection Service if it came by mail. People 60 or older who have been victims of financial fraud can call the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).

Why do lottery scammers keep calling me?

People who answer or pay are often called again. A May 2026 Justice Department case involved a man who sold the personal information of millions of older Americans to Jamaican lottery fraud scammers; he received a 121-month sentence.