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The Federal Trade Commission has a new warning for anyone who gives to charity or enters contests. In an October 2026 consumer alert, the agency described a charity sweepstakes scam in which callers and advertisers use a real charity’s name, or one that sounds close, to sell a prize that does not exist. The FTC’s test fits in one sentence: “The moment someone tells you to pay to claim your prize, you know you’re dealing with a scam.”
How the charity sweepstakes scam works
According to the alert, the pitch can arrive by phone or through ads on social media and search engines. The scammer asks for payment or personal details, such as a Social Security number. Neither is part of a real prize. The FTC says, “Legitimate sweepstakes are free and by chance,” and notes that paying to enter or improve your odds is not allowed. That makes any link between a donation and a prize a red flag.
Caller ID is not proof
The alert also challenges a common habit. Scammers “can fake caller ID,” the FTC says, so a screen showing a company or a government agency does not confirm who is calling. The phone is only one route. The FTC also points to paid ads on social media and search engines, and it advises scrolling past them.
What the FTC suggests checking
For a charity, the agency recommends research before giving. For a contest or a company, it suggests searching the name with words such as “complaint,” “review” or “scam,” and not relying on the first results. Two FTC pages go deeper: one on donating safely and avoiding scams, and one on fake prize, sweepstakes and lottery scams. Our guides on government impersonation scams and on spotting a scam text show how the same pressure tactics appear in other disguises.
The cost of paying
Any charity sweepstakes scam ends the same way, with a payment. The FTC says paying a scammer tends to bring more calls, mail and spam, not a prize. Its advice is blunt: “Never pay to get your prize.” For anyone who already sent money or personal details, the alert links to ReportFraud.ftc.gov, the FTC’s reporting site.
