$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Victims receive an official-looking email claiming they won a lottery they never entered, then are asked to pay taxes or processing fees to claim the prize.
“lottery scam”
↑ 72%Key indicators
Estimated impact
$960
median reported loss
Scam breakdown
Scammers send mass emails claiming the recipient has won a large lottery prize, often millions of dollars
To claim the prize, victims are told to pay upfront fees for taxes, insurance, or processing
Each payment leads to additional fee requests, and no prize is ever delivered
What to do first
Legitimate lotteries never require upfront payment to claim winnings
Related terms
Real-world example
Based on reported patterns. Names and details are illustrative.
The setup
Steven, 35, a older adults, encountered what appeared to be a legitimate lottery and prize scams situation while using Email. Scammers send mass emails claiming the recipient has won a large lottery prize, often millions of dollars
Step 2
What happened next was calculated: To claim the prize, victims are told to pay upfront fees for taxes, insurance, or processing
Step 3
The pressure escalated quickly: Each payment leads to additional fee requests, and no prize is ever delivered
The outcome
Steven realized something was wrong when you are told you won a lottery you never entered or purchased a ticket for. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Legitimate lotteries never require upfront payment to claim winnings Steven's experience shows why you are told you won a lottery you never entered or purchased a ticket for and you must pay a fee, tax, or processing charge before receiving your winnings are the clearest early warning signs.
How to identify it
What to do now
What to save before reporting
How big is this problem
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.
$12.5B
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Imposters
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
Recovery and follow-up
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 lottery and prize scams cost Americans hundreds of millions of dollars annually, with losses especially high among people over 60
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. Global has dedicated agencies that handle fraud reports.
Report cross-border scams
econsumer.gov (ICPEN)
International Consumer Protection and Enforcement Network portal for reporting cross-border online scams. Reports are shared with consumer protection agencies in 40+ countries.
Interpol financial crime guidance
Interpol
International policing guidance on online financial fraud, romance scams, and investment fraud operating across borders.
Report phishing emails
Anti-Phishing Working Group
Global industry coalition for reporting phishing emails and URLs. Forward phishing to [email protected].
Explore further
Who is most at risk
Primary targets
Older adults, Low-income households
Geographic concentration
Global
Primary channel
Email — 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
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
Source notes
Frequently asked questions
Scammers send mass emails claiming the recipient has won a large lottery prize, often millions of dollars To claim the prize, victims are told to pay upfront fees for taxes, insurance, or processing Each payment leads to additional fee requests, and no prize is ever delivered
You are told you won a lottery you never entered or purchased a ticket for You must pay a fee, tax, or processing charge before receiving your winnings Email originates from a free email service like Gmail or Yahoo rather than an official lottery domain
Legitimate lotteries never require upfront payment to claim winnings Do not respond to or click links in unsolicited lottery winning emails Report lottery scam emails to the FTC at ReportFraud.ftc.gov
This scam primarily targets Older adults, Low-income households. It is most commonly reported in Global and typically appears on Email.
email lottery winner notification scam is currently on the rise with growing reports. It has been reported across US, UK, CA, AU. Last updated 2026-04-04.
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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.