Is "won a prize but have to pay shipping to claim it scam" a scam?

Question

Is "won a prize but have to pay shipping to claim it scam" a scam? How do I know, and what should I do?

Accepted Answer

Yes — this is a known, dangerous scam. A call, letter, or email says you've won a sweepstakes, lottery, or sweepstake from Publishers Clearing House, Reader's Digest, or a foreign lottery. To claim the prize, you must first pay shipping, processing fees, taxes, or "insurance" — often by gift card or wire transfer. Red flags: You did not enter the sweepstakes / lottery they say you won • Real prizes never require you to pay taxes or fees upfront — taxes come later, separately, to the IRS • Prize value is huge ($100,000+) and out of proportion to anything believable • Payment of fees is requested by gift card, wire transfer, or cryptocurrency — never by check • Caller claims to be from PCH, Reader's Digest, or a foreign government lottery. What to do: It is illegal in the US to play a foreign lottery by mail or phone — and most calls about them are scams regardless • Publishers Clearing House does NOT call winners by phone. They show up in person, with the winning notification crew. There is no fee • Stop sending money. Each new 'one more fee' is the scam's pattern. There is no prize • If you have sent money, dispute the gift cards / wire with the issuer and your bank immediately • Report to the FTC at https://reportfraud.ftc.gov and the FBI's IC3 at https://www.ic3.gov.

Is “won a prize but have to pay shipping to claim it scam” a scam?

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