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How to Spot Lottery Scams as Jackpots Climb

Powerball is at $516M and Mega Millions at $364M, a perfect hook for fake win calls and IRS texts. How to spot lottery scams and where to report them.

Jackpot Dreaming Editorial7 min read

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Jackpot figures are the official estimates as checked on Oct. 9, 2026, ahead of Mega Millions' Friday, Oct. 9 drawing and Powerball's Saturday, Oct. 10 drawing. They change after every draw. Jackpot Dreaming is a personal project and is not affiliated with any lottery.

Why big jackpots are a scammer's hook

When the billboard numbers climb, lottery dreams are everywhere, and that makes the oldest scam pitch easier to sell: You've won. Act now. Send money to unlock the prize.

In February 2026 the California Lottery warned of an uptick in reports to its security team: unexpected emails, calls and messages that congratulate someone on a "win," then demand taxes, processing fees or other charges before the prize can be released. Mega Millions publishes a standing scam advisory with the same core message: no representative of Mega Millions would ever call, text or email anyone about winning a prize.

Scammers do not need you to hold a real ticket. They only need you to want to believe one exists.

The three tells the FTC wants you to know

The Federal Trade Commission keeps a plain checklist for fake prize, sweepstakes and lottery scams. Three signs are enough to hang up:

  1. You have to pay to get the prize. Real prizes are free. "Taxes," "shipping," "processing" or "customs" charged before you receive anything is the scam.
  2. You have to pay to improve your odds. Real sweepstakes are free and by chance. Asking for money to raise your chances is illegal.
  3. You have to hand over financial or personal information. There is no legitimate reason to give a bank account, credit card or Social Security number to claim a prize someone cold-contacted you about.

Payment method is another giveaway. Scammers push wires, payment apps, cash, gift cards or cryptocurrency because those are hard to reverse. A check that arrives with instructions to deposit it and send some money back is a fake-check setup: it bounces weeks later, and you owe the bank.

How the pitches usually sound

"Congratulations, you won Mega Millions / Powerball"

You never bought a ticket for that drawing, or you live outside the game's market. Mega Millions is played only in the United States; Powerball sales are limited to participating U.S. jurisdictions (plus a 2026 UK expansion for Powerball ticket sales). A call claiming an "international" Mega Millions prize for someone outside the U.S. is a scam by definition.

Fake names show up constantly: "United States National Lottery," "Mega Millions Mobile Lottery," "USA UK Mega Millions Lottery," "Mega Millions Corporation," "Mega Millions International Lottery." Mega Millions is a game, not a corporation that cold-calls winners. Those entities do not exist.

"I'm a past jackpot winner sharing my prize"

Mega Millions warns that some scammers pose as prior jackpot winners giving money away. The ask is the same: fees, taxes or your bank account.

"This is the IRS; pay your lottery tax now or we'll arrest you"

The IRS's March 2026 Dirty Dozen list leads with phishing emails and texts (often with QR codes that open fake IRS sites) and AI-enabled phone impersonation with spoofed caller ID. The agency's own guidance is blunt: it generally contacts taxpayers by mail first; it does not leave urgent, threatening prerecorded messages; it does not call to demand immediate payment or threaten arrest.

For a real jackpot, federal tax runs through the lottery's withholding and your tax return, not a surprise phone demand. On prizes over $5,000, lotteries withhold 24% for federal tax under IRS rules. That's a down payment: a nine-figure cash option is taxed almost entirely at the 37% top rate, so winners owe more when they file. Setting that aside is normal. Wiring it to a stranger is not.

Pressure, secrecy and "verify at this number"

Scammers rush you ("limited time"), demand confidentiality, or give you a "verification" line that is part of the fraud. Look up the real lottery or IRS contact information yourself. Do not call the number they provide.

If you really did win: different threats, same calm checklist

Real winners face a different problem: pressure once their names go public, plus big decisions about lump sum versus annuity, privacy and advisors. A practical first-week checklist:

  • Sign the back of the ticket, photograph both sides and store the original somewhere secure.
  • Tell as few people as possible until you have professional help.
  • Do not rush the claim. Many states give about 180 days from the drawing to claim; some jackpot claims (for example California Powerball and Mega Millions jackpots) allow up to one year. Cash-option deadlines can be shorter in some jurisdictions, so check the selling lottery's rules. Florida notes that multi-state jackpots are generally not available to pay until about 15 days after the draw while funds are collected across lotteries.
  • Hire a tax attorney or CPA and a fiduciary financial advisor before you claim. Ask how they're paid and whether they've worked with sudden-wealth clients.
  • Model the tax gap. Use the Jackpot Dreaming calculator for a first pass on federal and state take-home, then confirm with your advisors.
  • Think about privacy early. In many states the winner's name is public. Where the law allows, trusts and claim strategies can help.

What to do if you get a scam pitch (or already paid)

  • Hang up. Mega Millions warns that engaging can land your contact details on a list shared with other scammers.
  • Do not click links or open attachments in unexpected "lottery" or "IRS" messages.
  • Report prize and lottery scams to the FTC at ReportFraud.ftc.gov, your state attorney general, and local consumer protection. Mail-based pitches can go to the U.S. Postal Inspection Service.
  • Report IRS-related phishing emails and texts to phishing@irs.gov. Suspicious IRS-related calls can be reported to the Treasury Inspector General for Tax Administration (TIGTA).
  • If personal information was exposed, start at IdentityTheft.gov.
  • If you already sent money, the FTC says the sooner you act, the better: contact your bank, payment app or wire service right away.

The short version

You can't win a lottery you never played, real lotteries don't cold-call winners or charge advance fees, and the IRS doesn't demand same-day payment by phone. If the dream ever does come true, the boring moves win: sign the ticket, get real advisors and understand your after-tax take-home.

FAQ

Will Powerball or Mega Millions call me if I win?

No. Official guidance from Mega Millions and state lotteries such as California is that they do not send unsolicited calls, texts or emails announcing a win. You find out by checking your ticket against published winning numbers, then claiming through the lottery that sold it.

Do I have to pay taxes up front to claim a jackpot?

No fee or "advance tax" goes to a stranger to unlock a prize. When you claim a real prize over $5,000, the lottery withholds federal tax (24%) and any required state withholding, then reports the win on Form W-2G. You may still owe more when you file.

What should I do in the first 24 hours with a real winning ticket?

Sign the back, photograph it, store it safely, tell almost no one, and contact a tax attorney or CPA before claiming. You usually have months, not hours, to claim, though cash-option windows can be shorter in some states.

Where do I report a lottery or IRS scam?

Prize scams: FTC ReportFraud.ftc.gov, your state attorney general and local police as needed. IRS-related phishing: phishing@irs.gov. IRS phone impersonation: TIGTA. If identity theft is involved: IdentityTheft.gov.

How much of a $516 million Powerball jackpot would I keep?

The headline is the annuity; the cash option is currently about $212.6 million before taxes. After federal tax near 37% and state tax where applicable, take-home varies widely by state. Run your state in the Jackpot Dreaming calculator for a current estimate, then confirm with a tax professional.

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