Cryptocurrency lottery scams are becoming increasingly common. These scams typically arrive through emails, text messages, phone calls, or social media notifications, claiming that you’ve won a large prize in a competition you never entered.
Instead of receiving winnings, victims are often misled into sharing personal information, providing identity documents, or paying ongoing fees, with no legitimate prize ever delivered.
How the Scam Works
Account Creation Fraud
Scammers direct victims to create accounts with legitimate cryptocurrency exchanges, but instead of using the victim’s own details, they combine the victim’s phone number with a fraudulent email address. Victims are then asked to provide identity documents and record a verification video. This allows criminals to open and control a verified account under the victim’s identity, which can then be used for laundering funds or committing other crimes.
Fee Extraction Scam
Victims are told they must pay “processing fees” or “release taxes” before winnings can be released. An initial payment may be followed by requests for further costs — such as “insurance” or “government clearance.” Each payment increases the losses, while no prize is ever received.
Phishing and Fake Apps
Some scammers direct victims to fake lottery websites or fraudulent cryptocurrency apps designed to capture login credentials or private keys. These sites often display professional-looking dashboards showing fabricated balances to create the illusion of legitimacy before eventually locking the victim out.
Common Tactics Used
Lottery scams often appear convincing. Scammers may:
- Create fake dashboards displaying inflated balances and winnings.
- Use look-alike websites with URLs similar to legitimate companies.
- Claim false endorsements from celebrities, exchanges, or government agencies.
- Provide professional-looking documents, contracts, and ID “verification portals.”
- Allow small withdrawals initially to build trust before blocking access.
Psychological Pressure
In addition to technical deception, scammers use social manipulation to push victims into compliance:
Urgency: “Claim within 24 hours or lose your prize.”
Secrecy: “Do not tell your bank or family, or payment will be delayed.”
Authority pressure: Claiming connections with regulators, governments, or well-known businesses.
These tactics are designed to isolate victims and reduce the chance they will seek advice.
Red Flags to Watch For
Unsolicited contact about lottery winnings.
Requests to create accounts with specific personal details.
Demands for upfront fees, taxes, or insurance.
Pressure to keep winnings confidential.
Website addresses that differ slightly from official ones.
Requests to upload ID documents or record selfie verification videos.
Claims of partnerships with well-known companies that cannot be verified.
Important: Legitimate lotteries or cryptocurrency platforms never require upfront payments to release winnings.
What To Do If Targeted
Stop all communication immediately.
Do not send money or provide additional personal details.
Report the scam to Scamwatch (scamwatch.gov.au).
Lodge a report with the Australian Cyber Security Centre (ACSC) at cyber.gov.au.
Notify your bank, crypto exchange, or relevant platform.
Staying Safe
Treat unsolicited prize notifications with caution.
Be wary of secrecy requests and urgent deadlines.
Verify website addresses by typing them directly, not clicking links.
Use only official support channels for exchanges and regulators.
Discuss scams openly with friends and family — awareness is one of the strongest protections.