Lottery and Sweepstakes Wins: How Florida Seniors Beat the Upfront Fee Prize Scam

In Fort Pierce, a retired widower named Frank answered a call from someone claiming to be from the “Federal Lottery Board.” Frank, the caller said, had won $2.5 million in a sweepstakes he had never entered. There was just one small step: a $1,500 “tax” had to be paid before the prize could be released, and it had to be paid today, by gift card. Frank paid. Then a “claims agent” called demanding another $2,000 in “customs fees.” He was out $3,500 before his daughter checked and found that no such agency exists. There is no federal lottery in the United States, and no real prize ever collects taxes or customs fees in gift cards.

This is the upfront fee prize scam, and it manufactures hope to get at money. According to the FBI Internet Crime Complaint Center, older adults lost $136 million to lottery, sweepstakes, and inheritance scams in 2025, up 57% from the year before. The Federal Trade Commission reports that older adults were nearly three times more likely to report a loss on a prize, sweepstakes, or lottery scam than younger adults, and that prize, sweepstakes, and lottery scams made up 15% of older adults’ reported dollar losses when the contact was by phone.

The wider picture is just as sobering: older adults reported $2.4 billion in fraud losses in 2024, up 300% from 2020, and more than 201,000 victims age 60 and older reported over $7.7 billion in losses to the IC3 in 2025. The defense is simpler than the offense: you cannot win a lottery you never entered, and no real prize ever requires an upfront fee. The senior who knows those two things renders the fake win powerless before the first fee is ever demanded.

The red flags, in one glance

If you see any of these, you already know the script:

• Red flag 01 A notice that you won a lottery or sweepstakes you never entered.

• Red flag 02 Any upfront “tax,” “customs fee,” or “processing fee” to release a prize.

• Red flag 03 A caller from a “Federal Lottery Board” or agency that does not exist.

• Red flag 04 A check for part of the winnings that arrives with a demand to send a fee back.

• Red flag 05 Payment demanded by gift card, wire, or cryptocurrency.

• Red flag 06 A “lawyer” or “claims agent” who charges to process winnings.

• Red flag 07 Pressure to keep the win secret until the fee is paid.

• Red flag 08 A prize notice using a real lottery name like Powerball or Mega Millions with a contact that is not the official lottery.

• Red flag 09 A “recovery” company that promises to get your money back for another fee.

• Red flag 10 A caller who already knows your name and address.

• Red flag 11 A deadline that expires today.

If it happens, this is your plan

Nine moves keep you calm, in control, and one step ahead, no matter how official the letter or the voice sounds:

1. 1

   Never pay any fee to claim a prize. The fee is the scam, full stop.

2. 2

   Remember you cannot win a lottery you did not enter. If you never played, the win is invented.

3. 3

   Hang up and do not call back. You never need to confirm anything with the number on the screen.

4. 4

   Do not deposit a suspicious check, and never send the difference back.

5. 5

   Verify any prize claim with the official lottery or sweepstakes company using the published number on its own website.

6. 6

   Report to the FTC at reportfraud.ftc.gov, to the FBI IC3 at ic3.gov, and to the Florida Attorney General fraud hotline at 1-866-9-NO-SCAM.

7. 7

   Report to the Florida Lottery at floridalottery.com if the scam uses its name.

8. 8

   Contact the bank if money was paid, and call the card issuer right away if you used gift cards.

9. 9

   Remember that falling for a prize scam does not make anyone foolish. The scammers are professionals at manufacturing hope.

The honest truth: what a real prize looks like

A fake win is scary, but it is also beatable, because the real system works the opposite way from the script. Here is what actually happens and what actually protects you:

• Real lotteries never charge taxes, customs fees, or processing fees before a prize is released.

• You cannot win a lottery you did not enter, and winners are never contacted out of the blue to collect a fee.

• Florida Lottery winnings are paid through official channels, never by a stranger with a gift card, a wire, or a cryptocurrency wallet.

• Real prize notices never demand secrecy, and real lotteries announce winners publicly.

• One call to the official lottery, using the number on its own website, settles whether a prize exists.

Where to report lottery and sweepstakes scams in Florida

Reporting a scam is protection, not embarrassment. Every report helps stop the next fake win:

• FTC Report any lottery or sweepstakes scam at reportfraud.ftc.gov.

• FBI IC3 Report fake prize and advance-fee fraud at ic3.gov with the caller’s number.

• Florida AG Call the state fraud hotline at 1-866-9-NO-SCAM.

• Florida Lottery Report at floridalottery.com if the scam uses the Lottery’s name.

• Local sheriff File with your local sheriff’s non-emergency line, such as pbso.org or ircsheriff.org. In immediate danger, call 911 first.

Frequently asked questions about lottery and sweepstakes scams

Quick, honest answers to the questions Florida seniors and their families ask me most. Tap a question to open the answer.

Beat the upfront fee prize scam

The senior who knows the scam is the one who beats it, and knowledge is your armor. Remember you cannot win a lottery you never entered, verify any prize with the official lottery, and never pay a fee to claim a win. Then share what you know at the dinner table and in the family group chat, because the senior who teaches the script protects a whole family. The Senior Scams hub holds every story in the series, the blog index holds every article, and the home page shows the full picture of how The Complete Real Estate Team helps families build, protect, and transfer generational wealth.

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