$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
car winner notification scam
Victims receive a call, email, or letter claiming they won a new car but must pay taxes, registration fees, or delivery charges before receiving it.
“lottery scam”
↑ 72%Key indicators
Usually targetsOlder adults
Often hitsRetirees and seniors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$640
median reported loss
Typical range$40 – $4.0K
Recovery rate~15%
Scam breakdown
1
Scammers contact victims claiming they won a car through a random drawing or promotional event
2
To claim the vehicle, victims are told they must pay upfront fees for taxes, shipping, or registration
3
Payments are collected and the vehicle is never delivered, or the scammer demands additional fees indefinitely
What to do first
Legitimate car giveaways handle tax obligations as part of the prize and never require upfront payment
Related terms
free car scamvehicle prize fraudcar giveaway registration fee scamLottery and prize scamsPhoneRisingOlder adultsLow-income householdsRetirees and seniorsImmigrants and visa holdersUnited StatesUnited Kingdomfree car scamvehicle prize fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Kevin, 35, a older adults, encountered what appeared to be a legitimate lottery and prize scams situation while using Phone. Scammers contact victims claiming they won a car through a random drawing or promotional event
Step 2
What happened next was calculated: To claim the vehicle, victims are told they must pay upfront fees for taxes, shipping, or registration
Step 3
The pressure escalated quickly: Payments are collected and the vehicle is never delivered, or the scammer demands additional fees indefinitely
The outcome
Kevin realized something was wrong when you won a car from a contest you never entered. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Legitimate car giveaways handle tax obligations as part of the prize and never require upfront payment Kevin's experience shows why you won a car from a contest you never entered and you must pay taxes, registration, or delivery fees upfront before receiving the vehicle are the clearest early warning signs.
How to identify it
- You won a car from a contest you never entered
- You must pay taxes, registration, or delivery fees upfront before receiving the vehicle
- The organization sponsoring the contest has no verifiable online presence
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Legitimate car giveaways handle tax obligations as part of the prize and never require upfront payment
- ✓Verify the promotion by contacting the sponsoring company independently
- ✓Report car prize scams to the FTC and your state attorney general
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC warns that prize scams involving vehicles and high-value goods are a common variant used to target vulnerable consumers
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓Legitimate car giveaways handle tax obligations as part of the prize and never require upfront payment
- ✓Verify the promotion by contacting the sponsoring company independently
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC warns that prize scams involving vehicles and high-value goods are a common variant used to target vulnerable consumers
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Older adults, Low-income households
Geographic concentration
United States, United Kingdom
Primary channel
Phone — Lottery and prize scams
Why this group is vulnerable
Older adults are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC warns that prize scams involving vehicles and high-value goods are a common variant used to target vulnerable consumers
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about car winner notification scam
How does the car winner notification scam work?+
Scammers contact victims claiming they won a car through a random drawing or promotional event To claim the vehicle, victims are told they must pay upfront fees for taxes, shipping, or registration Payments are collected and the vehicle is never delivered, or the scammer demands additional fees indefinitely
What are the warning signs of car winner notification scam?+
You won a car from a contest you never entered You must pay taxes, registration, or delivery fees upfront before receiving the vehicle The organization sponsoring the contest has no verifiable online presence
What should I do if I encounter car winner notification scam?+
Legitimate car giveaways handle tax obligations as part of the prize and never require upfront payment Verify the promotion by contacting the sponsoring company independently Report car prize scams to the FTC and your state attorney general
Who is most at risk for car winner notification scam?+
This scam primarily targets Older adults, Low-income households. It is most commonly reported in United States, United Kingdom and typically appears on Phone.
Is car winner notification scam on the rise?+
car winner notification scam is currently on the rise with growing reports. It has been reported across US, UK. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
AI impersonation
↑ 34%AI voice clone family emergency scam
A caller sounds exactly like a family member in distress and pressures the victim to send money immediately before verifying the story.
What to do first
Hang up and call the family member back directly using a known number.
Targets
Parents
Seen in
U.S.
Smishing
↑ 27%Bank verification text phishing scam
A text message claims a suspicious bank event happened and pushes the victim to a fake login page before they stop to verify the sender.
What to do first
Do not tap the link from the text.
Targets
Mobile banking users
Seen in
Global
Identity theft
↑ 17%Medical billing identity fraud
Stolen identity details are used for medical claims or treatments, leading to fraudulent bills and corrupted records for the victim.
What to do first
Review insurance explanations of benefits regularly.
Targets
Families
Seen in
U.S.
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.