What it looks like
"Congratulations! You have been selected as the second place winner of $2,500,000 and a new Mercedes-Benz. To release your prize, a processing and insurance fee of $499 is required. Call our claims office at 1-888-XXX-XXXX."
An example. Real ones change their wording, amounts and names all the time.
How it works
The news comes by phone, mail, text or social media, often with a famous sounding name, an official seal and a winning number. Some letters include a real looking check. The prize is huge, and that is the point. When you think you just won millions, a few hundred dollars in 'fees' seems tiny.
Once you pay, there is always another cost: taxes, insurance, customs, a lawyer. Each payment is promised to be the last one. The callers may phone many times a day, act like friends, and later turn angry or threatening. People who pay once are often called again and again with new stories.
It fools smart people because real sweepstakes do exist, and winning is exciting. The rule is simple. If you have to pay to get a prize, it is not a prize. Real winners do not send fees up front, and taxes on a real prize are paid to the government, not to the company giving it away.
Signs it is fake
- You 'won' a contest you do not remember entering
- You must pay taxes, fees or shipping before you get the prize. Real prizes are free.
- A foreign lottery. The FTC says it is illegal for people in the US to take part in one.
- Payment by gift card, wire transfer, payment app, cash in the mail or cryptocurrency
- A check arrives to 'cover the fees', and you are asked to send part of it back
What to do
- Do not pay anything to collect a prize.
- Do not call back, and do not give your bank details 'so they can deposit the winnings'.
- If the calls keep coming, stop answering and block the number. People who respond often get passed along to other scammers.
If you already clicked, called or paid
- If you sent money, call your bank, the gift card company or the money transfer company right away.
- If you mailed cash or a check, also tell the U.S. Postal Inspection Service.
- Report it at reportfraud.ftc.gov and to your state attorney general.
Being fooled is not your fault. These messages are made by professionals to look real. Acting quickly is what matters. See what to do if you paid a scammer.
Not sure about a message?
Forward it to Uncle at +1 208 214 0093, or send a screenshot. He tells you plainly what looks wrong. He never asks for passwords or codes, and he never texts first. How it works.
Worried about a parent? With the Family plan, you get a heads up when a likely scam reaches them.
More common scams
Written by the Textuncle team. Last updated October 3, 2026.
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