A prize message can be exciting to receive because it puts a life-changing amount of money within reach. That hope is what scammers use first.
This is the trap federal prosecutors described in June 2026, when six people were charged in Connecticut over an alleged impersonation scheme. These six people allegedly pretended to represent a well-known sweepstakes company and told victims that they had prizes worth millions waiting; as long as they could first provide the upfront “taxes”.
That payment demand is one of the main sweepstakes scams warning signs; a legitimate social casino needs to offer a no-purchase entry route, often called an alternate method of entry (AMOE). Also, prize redemption happens through the player account, not through a cold call or private message.
This article looks at 10 major online sweepstakes scams, the tactics behind them, and the signs that separate real social sweepstakes play from prize fraud.
List of the 10 biggest sweepstakes scams in history
This sweepstakes scams list is ordered mainly by reported losses or court-documented losses, so cases with exact dollar totals are ranked by those figures. However, where prosecutors only give a broad amount (for example for the 2026 Connecticut PCH impersonation ring), the ranking uses that range instead.
1. Mail Tree: the $28 million global prize-letter operation
The Mail Tree case shows how a fake prize letter can turn a small fee into a much bigger loss. The FTC said the operation took more than $28 million from consumers in the US and other countries, including Australia, Canada, France, Germany, Japan, and the UK.
The letters used the same basic pressure point:
- People were told they had received a large prize, usually worth over $2 million
- The prize was described as "guaranteed"
- To collect it, they had to send a $20-$30 fee within 10 days
- People were warned that they would forfeit their prize if they didn’t pay on time
However, the operators had no connection to any sweepstakes and so they could not give away or pay anyone the promised prizes. This is one of the classic examples of sweepstakes lottery scams, where although the fee is reasonably low, the promise behind it is fake.
2. Next-Gen sweepstakes mail scheme: almost $25 million returned worldwide
Next-Gen shows how a prize scam can spread across borders through ordinary mail. In 2022, the FTC said it was returning almost $25 million to 244,745 consumers in the US and abroad, including people in Canada, the UK, and more than 50 other countries.
The scheme used personalized letters sent on a large scale:
- The letters told people they had received, or were likely to receive, a large prize
- Some letters mentioned prizes of up to $2 million
- People were asked to pay a fee of $9.00 to $139.99
- Many consumers paid more than once before they realized it was a scam
Next-Gen belongs as one of the strongest sweepstakes scams examples because even though the fee was relatively small, the scheme ended up reaching people all around the world.
3. Publishers Clearing House FTC case: the $18.5 million deception settlement
This case is a bit different from the other cases on this list, because it was an FTC action against the Publishers Clearing House (PCH) company over alleged deceptive online sweepstakes entry and sales practices.
The FTC said PCH agreed to pay $18.5 million to consumers and change its online process after the agency alleged several issues surrounding PCH:
- That they had deceived people into thinking that consumers couldn’t enter sweepstakes without purchasing a product
- That they had deceived people into thinking that purchasing a product helped increase their chances of winning
- That they had sent out emails with deceptive subject lines that led people to believe the email was related to official documents
- That they had added deceiving shipping and handling fees
- That they had misrepresented that ordering was “risk-free”, even though people who wanted refunds had to return products as their own expense
In 2025, the FTC said it was sending refunds to 281,724 affected consumers.
The bottom line is that this case shows why prize entries, purchases, fees, and prize claims should always be kept separate.
4. Global prize-notice scheme: the $15 million mass-mailing scam
According to the DOJ, Laura Stamps and others involved in this scheme mailed millions of prize notices that made people believe they had been personally chosen for a large prize.
The payment request looked small next to the promised amount:
- People were asked to pay $20 to $50
- Some people received a low-value item or a report about sweepstakes opportunities instead
- People who replied once were then sent more scam mail
The DOJ said the scheme took more than $15 million from mostly elderly and vulnerable victims.
5. Jordan Trought: the $9 million international sweepstakes fraud ring
Jordan Trought’s case shows how a sweepstakes fraud ring can move across borders and use several payment methods at once. The DOJ said the wider scheme took more than $9 million from more than 200 elderly victims in the US.
The fake prize story followed a familiar pattern:
- Victims received calls or texts saying they had received a major prize and a luxury car
- They were told to pay taxes or fees first
- Money was sent by check, money order, cash, wire transfer, Zelle, or Venmo
- Some victims also had their bank accounts taken over
Trought pleaded guilty in 2026, with the DOJ saying he was one of the ring’s leaders.
6. Melinda Bulgin: the $6.7 million fake-authority case
Melinda Bulgin’s case shows how scammers can make a fake prize sound official. DOJ archive material says Bulgin was convicted after a trial linked to an international Jamaican lottery fraud scheme, with over 100 identified victims and more than $6.7 million in reported losses.
The first caller would tell victims they had received a large prize. Then, a second person would call pretending to be from the FBI or IRS to “confirm” that the prize was real and say that taxes or fees had to be paid first.
The scheme also used:
- Checks and cash collected from victims
- Fake letters sent by mail
- Photos of fake checks to make the prize look real
That extra caller is what made the prize sound official, but that was part of the pressure, not proof.
7. 2026 Connecticut PCH impersonation ring: the alleged multimillion-dollar “sponsor” scheme
The Connecticut case brings the pattern into 2026. Federal prosecutors charged six people, five Jamaican nationals and one US citizen, with fraud and money laundering offenses over an alleged PCH impersonation scheme. The DOJ says the group allegedly targeted elderly people across the US and claimed they had received prizes worth millions.
The alleged setup had several layers:
- Victims were told to pay upfront taxes or fees
- Some were told to send money to other victims through a “sponsor program”
- Some people allegedly shared their driver’s licenses, bank details, and credit card information, which the defendants allegedly used for their own personal expenditures
- Prosecutors also alleged that Social Security benefits were moved into accounts controlled by people in the scheme
This is one of the newer online sweepstakes scams to watch; never send money to another “winner” or “sponsor” because it can be part of moving stolen funds.
8. Roshard Carty: more than $600,000 and a fake $22 million PCH prize
The DOJ said Carty posed as a PCH employee and told a 73-year-old victim that she had received a $22 million prize and a car. He then said she had to pay taxes and fees before the prize could be released.
The pressure built slowly:
- Carty told the victim the FBI was recording the call
- He told her not to tell anyone about the prize
- The first cash requests were small
- But he then started claiming that the money had been lost or stolen, so he could ask for more
The scheme became more aggressive as time went on, with Carty pushing the victim to borrow against her home, then sell it. When she tried to stop contact, he used different phone numbers and texting apps to try and get in touch with her, and then sent tow trucks and pizza deliveries. He even asked her landlord to conduct a welfare check.
The victim lost more than $600,000 and Carty pleaded guilty and was sentenced to three years in prison.
9. Suffolk County/Queens pair: the alleged $257,000 in-person PCH scheme
In Suffolk County, New York, two men were arrested in February 2026 and accused of targeting a 92-year-old resident with a fake PCH prize story. The victim was allegedly told he had received an $18 million prize, but had to pay taxes and fees first.
What makes this case stand out is the in-person step:
- An alleged “representative” went to the victim’s house with paperwork
- The defendants allegedly returned over several days to collect money
- On one occasion, they allegedly took the victim to his bank
- The case involved about $257,000, including a $200,000 cashier’s check
This is one of the more hands-on sweepstakes scams examples in the list. However, paperwork and home visits still don’t make a prize claim legitimate.
10. Southern District of Alabama ring: the alleged $200,000 cash-shipment scam
The Southern District of Alabama case shows how risky it is when a prize claim leads to mailed cash. In February 2025, the DOJ said four Jamaican nationals were arrested over an alleged lottery scam involving more than $200,000 sent through over 100 cash shipments.
The alleged pattern was as follows:
- Victims across the US were told they had received a lottery prize
- They were allegedly told to send “taxes” before the prize could be released
- The cash was sent to fake names at addresses controlled by the defendants
This case is based on a criminal complaint, so the claims are still allegations, but sweepstakes scams warning signs include requests to mail cash outside a verified account process.
How a sweepstakes scam actually works: sweepstakes scams warning signs
Most sweepstakes scams begin with a message the person wasn’t expecting, which might arrive by phone, email, letter, text, or social media. The name used often sounds familiar, such as PCH or a lottery office.
The story usually goes as follows:
- The person is told a large prize is waiting
- The scammer says one final step is needed before it can be released
- The step is usually a fee, tax, shipping cost, insurance cost, or processing payment
- The payment method is often hard to reverse, such as a wire transfer, gift card, payment app, mailed cash, check, money order, or crypto
- There’s usually a deadline by when to send the money to have the prize released
Some scams like to add more pressure by sending fake paperwork, bringing in another caller pretending to be an official, or telling the victim to keep the prize a secret.
Just keep in mind that real sweepstakes are free to enter and no one can sell better odds. A prize claim is a scam if someone asks for money or account details first.
How to tell a legitimate social sweepstakes casino apart from a scam
A legitimate social sweepstakes casino works very differently from a prize scam. A scam often starts with an unexpected call, text, email, letter, or social media message saying a prize is waiting, whereas a legitimate platform handles prize redemption through your account, published terms, and identity checks.
These are the biggest differences:
- A legitimate social casino won’t contact you out of nowhere to say a prize is waiting
- It won’t ask you to pay taxes, gift cards, courier charges, mailed money, or “release fees” before letting you redeem your prize
- It must offer a no-purchase entry route
- Prize redemption should happen through your player account, not through a private caller or message
A trusted platform will send you back to its own account pages, terms and support channels, and won’t ask you to follow a stranger’s payment instructions.
For more context on how legitimate social sweepstakes platforms work, readers can take a look at our sweepstakes casino guide.
What to do if you’re targeted
If someone contacts you about a prize and asks for money first, stop replying. Don’t pay anything, and don’t send documents, bank details, card details, gift card codes, checks, or cash.
Keep anything that could help show what happened, such as:
- Screenshots
- Phone numbers
- Letters and envelopes
- Payment receipts
- Usernames or social media profiles
Report the scam to the FTC at reportfraud.ftc.gov. If the message came by mail, report it to the US Postal Inspection Service too.
If you’ve shared any personal information, use identitytheft.gov for the next steps.
Older victims, family members, or caregivers can also contact the National Elder Fraud Hotline at (833) FRAUD-11 or (833) 372-8311.
Conclusion
The pattern across these cases is the same: an unexpected prize claim followed by a demand for money or information. This is what separates prize fraud from legitimate social sweepstakes play. A real social sweepstakes platform uses account-based prize redemption, has published terms, and a no-purchase entry route, which means that it won’t ask for any kind of money before a prize can be redeemed.
