Lottery Scams and Fake Sweepstakes Cost Americans $227 Million in 2020

OLIVER L. Author

Last Updated: July 5th, 2021

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After working in the gambling industry for over a decade, Oliver spotted an opportunity to setup a resource for lottery bettors. CompareTheLotto.com was founded in 2014 and launched a UK site firstly with a South African following shortly after and USA being launched in 2020.

Note: *The following article is purely for fun. It is based on individual opinions and does not constitute advice. The drawing of lottery numbers is entirely random. Please always gamble responsibly. #Ad. Find out more on our How Our Site Works page.

Playing the lotto is a fun and enjoyable pastime that can make a lucky few rich beyond their wildest dreams. It's a fantastic form of entertainment that gives its participants some exciting moments throughout the week and at weekends.

In recent years, though, a troubling increase in active scammers has meant more people than ever before have been scammed by those pretending to work for lotteries and prize draws.

Steve Baker, an investigator from Better Business Bureau, penned a report that estimates a sickening $227million has been lost to scammers in 2020 alone - that's a 33% increase on the year before.

How do the scams work?

It varies - but one example from Michigan is deemed typical of how scammers perform their cowardly acts.

Kathy Chapman told CBS News just how her 84-year-old father was bombarded by messages and phone calls from scammers purporting to be from Publisher's Clearing House (PCH). This company deals exclusively in magazine subscriptions with sweepstakes, giveaways, and prize-based games.

The con artists convinced the elderly gentleman - a man whose daughter says would never usually get taken in by a scam - that he had won $2.5 million, a brand-new BMW, and gold medallions. The catch? He would have to pay a series of taxes and fees before he could claim his riches.

Before long, the criminals had withdrawn thousands from the victim's accounts, alerting the Credit Union to suspicious activities. It was too late. Mr Chapman had lost $72,000.

Here are some of the things you should be aware of when playing the lotto:

1. It is impossible to win a lottery or contest that you never entered.
2. A winner will never be asked to pay a sum of money before receiving a prize.
3. Never pass on any banking details over the phone (that one's a general rule of thumb)
4. Should you receive a suspicious communication - particularly one with typos or grammatical errors - report it to the police straight away.

When playing lottery online, our advice is to stick with the established and regulated operators - such as the state operators themselves or the renowned Jackpocket.com.

If you’re interested in prize draws for cars, holidays and amazing experiences, we recommend you check out Omaze and consider making a donation to charity at the same time as having a chance to win big.