The Prize You Never Entered

The simulator

1. Step 1 of 6 First contact

   You open the message. It’s from Carol’s account, and it’s full of good news.

   C

   Carol JenningsSocial network

   1. They wrote: Hi, how are you? Have you heard about the Social Lottery? I won $100,000 last week and I’ve already got my money.10:12 am
   2. They wrote: I saw your name on the winners list too. You need to contact the claims agent to get yours. His name is Agent Mark Collins, just search for him on here.10:13 am

   Read this aloud

   Your friend says you've won too. What do you do?

   Not sure? Show a hint

   Is this how Carol usually writes to you? How could you check it’s really her?

   1. Message the agent. Carol’s a real friend, so it must be true.

      Risky choice

      It’s Carol’s account, but it may not be Carol writing. Scammers break into accounts and message the person’s friends, because a message from a friend is trusted. Contacting the agent puts you straight in touch with the scammers.

   2. Reply to Carol and ask if it’s really true.

      Better, but not the safest

      A good instinct, but if her account has been taken over, the scammer will answer, and the answer will be yes. The check has to happen outside the account, on a phone number you already have.

   3. Call Carol on her usual phone number and ask her. I don’t contact the agent.

      Safe choice

      That’s the way to check. In a real Australian case, a man’s cousin messaged to say he’d won too. When the man finally contacted his cousin directly, the cousin said his account had been hacked and he’d never won anything.

   Red flags at this step

   • A win in a lottery you never entered
   • A friend who suddenly writes to you about money
   • Being sent to an “agent” to claim

   What's really going on

   The “Social Lottery” doesn’t exist. In the case Scamwatch describes, it was called the “Facebook Freedom Lottery”. Scammers take over people’s accounts and message their friends, because we trust people we know. Scamwatch’s advice: “Always check whether offers are legitimate, even those passed on from people you know.”

2. Step 2 of 6 The hook

   Many people do message the agent, just to see. Suppose you did. He answers straight away.

   A

   Agent Mark CollinsSocial network

   1. You wrote: Hello, my friend Carol said my name is on the winners list.10:21 am
   2. They wrote: Congratulations. I can confirm you are one of our lucky winners. Your claim number is SL-2291-A, and your prize is $150,000 in cash.10:22 am
   3. They wrote: To release your winnings, please send your full name, home address, date of birth and phone number, so we can verify your identity.10:23 am

   He also sends a photo of a smiling woman holding a giant check, and a certificate with a gold seal.

   Read this aloud

   The agent wants your details to release the prize. What do you do?

   Not sure? Show a hint

   Did you ever enter this lottery?

   1. Send my details. They need them to pay me.

      Risky choice

      Your name, address, date of birth and phone number are valuable to criminals. They can be used to steal your identity, or to make the next scam more convincing. They also tell the scammers you’re interested.

   2. Ask for proof first, like a license or photos of other winners.

      Risky choice

      They’ll happily send proof. Certificates, gold seals and photos of winners holding giant checks are easy to make, and none of it can be checked. It’s there to make you feel sure.

   3. Stop. I never entered a lottery, so I can’t have won one. I block the agent and report the account.

      Safe choice

      That’s the key point. You can’t win a lottery or sweepstakes you didn’t enter. Blocking the agent ends the conversation, and reporting the account helps protect other people.

   Red flags at this step

   • A big prize and a claim number for a contest you didn’t enter
   • Congratulations from someone you’ve never heard of
   • Requests for your date of birth and home address

   What's really going on

   The FTC says real sweepstakes are free and are decided by chance alone. A claim number, a certificate and photos of past winners are props, there to make the prize feel real. In a case reported by a Missouri TV station, a fake profile used the name of a real lottery winner to offer people $150,000.

3. Step 3 of 6 The ask

   Suppose you keep going. The agent says your prize is ready, except for one small thing.

   A

   Agent Mark CollinsSocial network

   1. They wrote: Good news, your identity is verified. Your $150,000 is ready for release.2:40 pm
   2. They wrote: Before it can be sent, there is a one-time processing and tax fee of $250. By law, this fee cannot be taken out of the prize, so it must be paid separately.2:41 pm
   3. They wrote: Please pay within 24 hours, or the prize will go to the next winner. And keep this private for now. Winners who share the news before payment can lose their prize.2:42 pm

   Read this aloud

   You're asked to pay $250 to receive $150,000. What do you do?

   Not sure? Show a hint

   Why would a real prize company not simply take the fee out of the winnings?

   1. Pay it. $250 is nothing compared with $150,000.

      Risky choice

      That’s the sum the whole scam is built on: a small fee against a huge prize. But there is no prize. The $250 goes to the scammers, and it shows them you’ll pay. More fees will follow.

   2. Ask them to take the fee out of the prize and send me the rest.

      Better, but not the safest

      A good question, and one a real prize company would say yes to. The scammers will have a reason why they can’t, usually something official-sounding about the law or the bank. That refusal is your answer.

   3. Refuse. If I have to pay to get a prize, it’s a scam.

      Safe choice

      Exactly right. The FTC puts it plainly: “If you have to pay to get your prize, it’s a scam. Real prizes are free.” You can stop here and lose nothing.

   Red flags at this step

   • A fee, tax or charge to pay before you get a prize
   • “The fee can’t be taken out of the prize”
   • A 24-hour deadline
   • Being told to keep it private

   What's really going on

   This is the heart of every prize scam. The FTC says scammers ask for money for “taxes,” “shipping and handling charges,” “processing fees” or “customs duties” to release a prize. In the Australian case, the first fee was $250, to process the prize.

4. Step 4 of 6 The ask

   Suppose you paid the $250. Over the next week, the agent keeps coming back with news.

   A

   Agent Mark CollinsSocial network

   1. They wrote: Your processing fee is received, thank you. One last step. Your prize is held in a bank overseas, so an international transfer fee of $780 is needed.Tue 9:05 am
   2. They wrote: Transfer approved. Customs now need a clearance charge of $1,150 before the funds can enter the country.Thu 11:30 am
   3. They wrote: Final step: the government requires an anti-terror certificate to prove the money is clean. The fee is $1,900. After this, your prize is released the same day.Sat 4:15 pm

   Read this aloud

   Each fee is supposed to be the last. What do you do?

   Not sure? Show a hint

   How many times has this been the “last” fee?

   1. Keep paying. I’ve already paid so much, I can’t stop now.

      Risky choice

      That feeling is completely natural, and the scammers count on it. But each payment only makes the next request more likely. Stopping now is the only way to stop losing money.

   2. Pay this one, since it’s the final step, then insist on the prize.

      Risky choice

      It’s never the final step. In the Australian case, a man paid fee after fee over two weeks, each time believing it would be the last, and lost $1,500. The fees stop only when you stop paying.

   3. Stop, and tell someone I trust what’s been happening.

      Safe choice

      That’s the right move. Talking to a family member, a friend or your bank helps you see the pattern from the outside. It’s much harder for the scammers to keep pushing once someone else knows.

   Red flags at this step

   • One fee after another, each called the last
   • Official-sounding charges: transfer fees, customs, certificates
   • Excuses for why the fees can’t come out of the prize

   What's really going on

   Once someone has paid, scammers keep inventing new fees for as long as the person keeps paying. In the Scamwatch case, the second fee was for an “international transfer”, because the prize money was supposedly “sitting in a bank in America”. US prosecutors describe the same pattern: victims were told to pay taxes or fees, then told that more payments were needed.

5. Step 5 of 6 The ask

   Suppose you agree to one more payment. The agent explains how to pay it.

   A

   Agent Mark CollinsSocial network

   1. They wrote: For fast release, please buy gift cards for $1,900 from any store. Scratch off the back, then send me clear photos of the cards and the receipts.4:20 pm
   2. They wrote: If you’d rather pay cash, we can send a courier to your home to collect it this evening. He will give you a password so you know it’s him.4:21 pm
   3. They wrote: If the cashier asks what the cards are for, just say they’re gifts for your grandchildren.4:22 pm

   Read this aloud

   The agent wants gift cards, or cash handed to a courier. What do you do?

   Not sure? Show a hint

   Which real business asks to be paid in gift cards, or sends someone to your door for cash?

   1. Buy the gift cards and send photos of them.

      Risky choice

      Once you send the numbers, the scammers can spend the money on the cards, and it’s very hard to get back. The FTC says: “Only scammers ask for gift cards as payment.” If you’ve already sent them, call the company that issued the cards straight away, using the number on the back.

   2. Take out cash for the courier. It’s easier than gift cards.

      Risky choice

      Handing cash to a stranger at your door puts you and your money at risk, and cash can’t be traced. No real prize company sends someone to collect a fee. If a courier is on the way, call the police.

   3. Refuse. Gift cards and cash couriers are how scammers get paid. If anyone comes to collect, I call the police.

      Safe choice

      Exactly right. Real businesses don’t take payment in gift cards or cash at the door. If someone is coming to your home to collect money, call 911 (999 in the UK, 000 in Australia, 111 in New Zealand).

   Red flags at this step

   • Being asked to pay with gift cards and send photos of them
   • An offer to send someone to your home to collect cash
   • Being told what to say to the cashier

   What's really going on

   Scammers ask for gift cards, cash, wire transfers and crypto because these are hard to trace and hard to reverse. The FTC describes scammers asking for hundreds of dollars in gift cards, with photos of the card numbers sent as “processing and delivery fees”. In September 2026 a man was sentenced to eight years in New York for his part in a ring that took more than $9 million from over 200 older people, paid by check, money order, cash, wire and payment apps.

6. Step 6 of 6 Afterwards

   Suppose you’ve stopped paying. The messages stop, but calls start, from new “agents” about new prizes. Then a different kind of call arrives.

   Incoming call

   Caller ID: (202) 555-0148

   1. Caller: “Good afternoon. I’m calling from the International Lottery Commission. We’ve arrested the people who took your money, and we’ve recovered $4,080 in your name.”
   2. Caller: “To return it, we need a court release fee of $400. Once that’s paid, the money goes straight into your bank account. Can I take your bank details?”

   Read this aloud

   A "lottery commission" says it has your money. What do you do?

   Not sure? Show a hint

   Would anyone really charge you to give back money that was stolen from you?

   1. Pay the release fee. I’d love to get something back.

      Risky choice

      This is a recovery scam, often run by the same people or by others who bought your details. Real agencies and police don’t charge a fee to return stolen money. Paying, or giving your bank details, would only add to your losses.

   2. Ask for their website and look it up.

      Better, but not the safest

      Checking is good, but not through anything the caller gives you: scammers can make convincing websites and forged letters. Find the agency’s contact details yourself. A real one won’t ask you for a fee.

   3. Hang up, and report both scams myself, using official websites or phone numbers I look up.

      Safe choice

      That’s right. The FTC says government agencies and legitimate organizations “will never ask for money to help you get a refund.” Reporting is free, and it helps catch the people behind these scams.

   Red flags at this step

   • A call offering to recover money you lost
   • A fee to release “recovered” money
   • Being asked for your bank details

   What's really going on

   Once someone has paid, their details are often passed around. The FTC says scammers trade “sucker lists” of people who’ve been scammed before, so more calls often follow. If they won’t stop, ask your phone company about blocking them, or think about changing your number.