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Maryland Lottery Warns Players About Rising Prize Scam Threats

by Nancy

Lottery players are being urged to stay alert as scams promising fake prizes continue to target unsuspecting victims. One Maryland man nearly lost his savings after receiving a fraudulent check for $450,000, along with a fake congratulatory letter.

Thomas Johnson of Baltimore said he was stunned when he received the check in the mail. “I looked at it and was like, wow, I’m a winner,” he told WMAR2, a local ABC affiliate.

But excitement quickly turned to suspicion. Johnson realized the letter instructed him to pay taxes upfront using a debit or credit card. “They were going to tell you just pay the taxes… and then, of course, they got you,” he said.

The Maryland Lottery has since warned players to be cautious. Officials stressed that legitimate contests never require winners to pay money upfront. “No legal lottery in the U.S. will ask for payment to release your prize,” a spokesperson said. “If taxes are owed, they’re deducted from your winnings before you receive anything.”

In one scam circulating in Maryland, victims received letters claiming they had won $7 million for paying utility bills on time. To claim the prize, they were told to pay $4,000 in fees. Officials say scams like these are often sent to thousands of people, and fraudsters only need one victim to profit.

The Federal Trade Commission (FTC) reports that lottery and sweepstakes scams ranked among the top three most common frauds last year. Consumers lost over $338 million in 2024 alone.

Experts say the biggest red flag is being told you’ve won a contest you never entered. The Maryland Lottery and organizations like Publishers Clearing House only notify winners through official methods, such as certified mail or phone calls, and never ask for money.

Authorities have already made arrests in the state. Earlier this year, two brothers were accused of stealing $3.5 million over three years through a lottery scheme.

The Maryland Lottery also advises players to protect their personal information. Never give out your Social Security number, banking details, or other sensitive data to claim a prize. Officials also warn players to ignore anyone claiming to be a representative of Mega Millions or Powerball, as no such roles exist.Players who suspect a scam should report it to the FTC and their state lottery office immediately.

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