Alabama ranks tenth nationally for sweepstakes and lottery scams, according to a Vegas Insider study of Federal Trade Commission data.
Between 2020 and 2025, Alabamians lost approximately $18.9 million, about $1,430 per reported case. Vegas Insider says modern scams are using AI-generated messages, spoofed caller IDs and fake prize letters to deceive their targets.
Alabama is one of only five states, including Alaska, Hawaii, Nevada and Utah, without a state lottery, making residents more exposed to fake national prize scams.
Across the U.S., consumers have lost more than $660 million to lottery and sweepstakes scams over the past five years, including $351 million in 2024 alone, according to the study.
Some common tactics include fake international lottery notices, verification or tax fees, bogus checks and identity-validation requests.
The Alabama Attorney General’s Office have warned that scammers will request payment for fraudulent fees or taxes before releasing the money through wire transfers, prepaid cards or counterfeit checks.
Vegas Insider has tips for identifying lottery scams.
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