What are the warning signs of a lottery, prize & inheritance scam?

Watch for: You 'won' a lottery you never entered; Asked to pay any fee to receive a prize or inheritance; Documents look official but contain spelling or formatting errors; Contact via Gmail/Yahoo addresses, not a real corporate domain.

How can I tell if this is a scam?

Stop and verify independently. Contact the organisation using details you look up yourself, never the ones in the message, and don't act on urgency. You can also paste the message into the ScamShield AI scam checker for a risk assessment — it gives guidance, not a guarantee.

What should I do if I clicked the link or replied?

Stop all contact, change the password on any account you logged into and turn on two-factor authentication, and watch your accounts for changes you didn't make. Delete the message. No real lottery or estate ever requires upfront payment. Never share ID, bank or passport details with the sender. Search the exact wording online — these scripts are reused for years.

What should I do if I already sent money?

Contact your bank immediately and ask about stopping or recalling the payment, keep all evidence, then report the scam. Be wary of anyone who later offers to recover your money for a fee.

Where should Australians report this scam?

Report scams to Scamwatch (National Anti-Scam Centre), report cybercrime to ReportCyber, forward scam texts to 7726, and contact IDCARE if identity details were exposed. Contact your bank first if money is involved.

All scams

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Lottery, prize & inheritance scam

You've 'won' a prize or inherited millions — just pay a small fee to release the funds.

Senior

How it works

An email, letter or call tells you you've won an overseas lottery, Microsoft draw, or that a long-lost relative left you an estate. To release the funds you must pay 'taxes', 'legal fees' or 'insurance' upfront — often a few hundred dollars at first, then thousands as new fees appear. The prize and the inheritance never exist.

Common scenarios to watch for

This scam shows up in several different shapes. Recognise the pattern, not just one message.

Reporting locationHotlines on the printed checklist will match this location.

Overseas lottery 'win'

Letter or email says you won a Spanish/UK/Microsoft lottery you never entered. Releasing the winnings requires you to pay 'tax' or 'transfer insurance' upfront.

"Congratulations! Your email won £980,000 in the UK National Promo. Pay £420 in processing fees to claim."

Red flags to spot

Did you actually buy a ticket or enter this lottery?
Are you required to pay a fee to receive the prize?
Is the contact a Gmail/Yahoo address, not a corporate domain?
Are they asking for ID, passport, and bank details upfront?

Long-lost relative inheritance

A 'barrister' overseas claims a distant relative with your surname died leaving millions. To release the estate you must pay legal stamp duty, then more and more fees.

"Barrister Okafor here. Your late uncle Mr Chen left US$8.4m unclaimed. Send $480 stamp duty to begin transfer."

Red flags to spot

Did you have any actual knowledge of this relative?
Are documents full of formatting errors, mismatched fonts, or odd English?
Are you asked to keep the matter confidential from family?
Do the fees keep growing each time you pay one?

Prize-draw scratchcard in the mail

A glossy scratchcard arrives showing you 'won' a car or cash. Calling the number gets you a hard sell to pay 'administration' or join a paid timeshare presentation.

"You've WON! Mercedes A-Class or $50,000. Call 1800-xxx and quote code 9921 to claim."

Red flags to spot

Did the card arrive unsolicited with no entry on your part?
Are 'winners' asked to pay any kind of admin or release fee?
Does claiming require attending a sales presentation?
Is the prize hotline a premium-rate or overseas number?

Red flags

🚩You 'won' a lottery you never entered
🚩Asked to pay any fee to receive a prize or inheritance
🚩Documents look official but contain spelling or formatting errors
🚩Contact via Gmail/Yahoo addresses, not a real corporate domain
🚩Pressure to keep the win 'confidential' from family

What to do

1Delete the message. No real lottery or estate ever requires upfront payment.
2Never share ID, bank or passport details with the sender.
3Search the exact wording online — these scripts are reused for years.
4If you've already paid: stop all further payments, report to Scamwatch and your bank.
5Warn elderly relatives — this scam disproportionately targets seniors.

Who's targeted

Seniors and isolated retirees.
Anyone replying to unsolicited 'win' emails.

Why it works

A life-changing win is hard to dismiss.
Each 'fee' is small relative to the imagined prize.

Common variations

Different shapes of the same scam — recognise the pattern.

1Microsoft / Google lottery you 'won'.
2Long-lost relative leaving you millions.
3Foreign prize requiring 'currency conversion tax'.

If you've already been scammed

1Stop all further payments and block the sender.
2Report to Scamwatch and warn elderly relatives.
3If you shared ID, call IDCARE.

Frequently asked

Are any of these ever real?▾

No legitimate lottery, prize or estate ever requires upfront fees.

What if they have a lawyer's letterhead?▾

Letterheads are easy to fake. Verify any law firm via the state legal society.

Should I tell my family?▾

Yes — scammers ask victims to keep wins 'confidential' precisely to prevent this.

Questions people ask about this scam

How does the lottery, prize & inheritance scam work?: An email, letter or call tells you you've won an overseas lottery, Microsoft draw, or that a long-lost relative left you an estate. To release the funds you must pay 'taxes', 'legal fees' or 'insurance' upfront — often a few hundred dollars at first, then thousands as new fees appear. The prize and the inheritance never exist.
What are the warning signs of a lottery, prize & inheritance scam?: Watch for: You 'won' a lottery you never entered; Asked to pay any fee to receive a prize or inheritance; Documents look official but contain spelling or formatting errors; Contact via Gmail/Yahoo addresses, not a real corporate domain.
How can I tell if this is a scam?: Stop and verify independently. Contact the organisation using details you look up yourself, never the ones in the message, and don't act on urgency. You can also paste the message into the ScamShield AI scam checker for a risk assessment — it gives guidance, not a guarantee.
What should I do if I clicked the link or replied?: Stop all contact, change the password on any account you logged into and turn on two-factor authentication, and watch your accounts for changes you didn't make. Delete the message. No real lottery or estate ever requires upfront payment. Never share ID, bank or passport details with the sender. Search the exact wording online — these scripts are reused for years.
What should I do if I already sent money?: Contact your bank immediately and ask about stopping or recalling the payment, keep all evidence, then report the scam. Be wary of anyone who later offers to recover your money for a fee.
Where should Australians report this scam?: Report scams to Scamwatch (National Anti-Scam Centre), report cybercrime to ReportCyber, forward scam texts to 7726, and contact IDCARE if identity details were exposed. Contact your bank first if money is involved.

General scam awareness information. ScamShield AI cannot guarantee that every scam will be detected or that a message is legitimate.

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