7. Sweepstakes and Lottery Scams

The premise of the sweepstakes scam is simple but highly effective. You receive a phone call, an ornate letter, or an email enthusiastically declaring that you have won a massive international lottery or the Publishers Clearing House grand prize. The notification includes convincing details, perhaps even referencing a fake confirmation code.

However, there is a catch: before the organizers can release your millions, you must pay upfront fees to cover taxes, insurance, or customs duties. The scammer promises that this small upfront payment will be reimbursed once the winnings are delivered. After you send the first payment, they invent new fees, continuously draining your accounts until you run out of money or realize the truth.

The universal rule for combating this fraud is straightforward: you never have to pay money to win money. Legitimate lotteries and sweepstakes deduct taxes directly from the winnings before distribution; they do not ask you to front the cash. Furthermore, you cannot win a lottery you did not intentionally enter.