Year in and year out, lottery and contest scams are some of the most lucrative scams for conmen. You may be told that you have won a large lottery or contest. To further gain your confidence, you may even be told that the contest or lottery has been approved by the FBI or that the contest is sponsored by a big company with which you may be familiar, such as Clorox, a legitimate company whose name was used by scammers to steal money from unsuspecting victims. Most of these lottery scams involve you having to pay various processing fees or even income taxes to the lottery sponsor.
It is hard enough to win a contest you enter, so you should be particularly wary when told that you have won a contest that you never even entered. Legitimate contests and lotteries do not have processing fees that you have to pay and they do not collect income taxes from you. The sponsor either would pay the taxes on your behalf or provide you with an IRS Form 1099 informing you of how much money was paid on your behalf to the IRS or you would be responsible to pay the IRS directly. You would not pay the income taxes on the prize to the contest sponsor.
And beware of your winnings coming to you in the form of a certified bank check. Unsuspecting victims have deposited these checks and waited for the check to clear before sending processing fees only to find that the check was a forgery and their own bank had only given them provisional credit for the check so that once it bounced, the victim not only lost the “winnings” but also the processing fees.