'Pay Taxes/Fees to Release Winnings' Advance-Fee
You 'won' a prize but must first pay taxes, customs, insurance, or a release fee — the fee is the scam and the prize never comes.
Think a message like this reached you? You can check it right now.
What this scam is
This is the engine behind most lottery and sweepstakes scams: to receive your winnings, you must first pay something — taxes, customs, insurance, a bank release, a delivery fee. Each payment leads to a new one. Legitimate winnings never require an upfront fee, and taxes on real prizes are handled through official channels, not paid to a caller by gift card or wire. If you must pay to get paid, it is a scam.
What it usually looks like
- A prize notification requiring an upfront fee.
- Fees labeled taxes, customs, insurance, or release.
- Payment by gift card, wire, or crypto.
- New fees appearing after each payment.
Common warning signs
- Any fee required to receive winnings.
- Untraceable payment methods.
- Escalating, ever-changing fees.
- A prize you never entered to win.
Example wording scammers use
“Your prize is ready — pay the $500 release/insurance fee to have it delivered.”
“A customs charge is required before your winnings can clear to your account.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Repeated upfront 'fees.'
- Untraceable payments.
- To keep you paying toward a fake prize.
What to do
- Never pay a fee to claim winnings.
- Hang up or delete; do not send gift cards, wire, or crypto.
- Verify with the supposed sponsor through official channels — expect no real prize.
- Tell someone you trust.
What to do if you already responded
- Contact the gift-card/wire provider immediately.
- Keep all messages.
- Report at reportfraud.ftc.gov.