Flashy reels, luxury prizes, and the promise of instant luck are becoming a dangerous trap. What looks like harmless social media entertainment is now being exposed as a serious financial fraud.
Hyderabad City Police have issued a strong public warning against fraudulent lucky draw and prize draw scams promoted by certain social media influencers.
These scams are not just misleading. They are illegal and punishable under Indian law.
How Prize Draw Scams Are Fooling the Public
Several influencers with large online followings are promoting so-called lucky draw schemes that promise high-value prizes such as:
- Cars and bikes
- Residential plots
- Expensive gadgets and DJ equipment
These promotions are often packaged in flashy Instagram reels and short videos designed to look authentic and exciting. Influencers use emotional language and visual proof to create trust, encouraging followers to participate quickly before “slots close.”
In reality, these schemes are carefully designed to collect money from the public without delivering any prizes.
Why These Lucky Draw Schemes Are Dangerous
Commissioner Sajjanar explained that with betting app promotions coming under strict regulatory scrutiny, fraudsters have shifted tactics. Instead of openly promoting betting platforms, they are now using lucky draws and prize schemes as a cover for financial fraud.
Typically, victims are asked to:
- Buy low-cost tickets
- Make UPI or online payments
- Transfer small “entry” or “processing” fees
Once the money is collected, prizes are never delivered. In many cases, communication stops completely, leaving victims cheated with no accountability.
These scams often target youth, middle-class families and first-time online earners.
Red Flags of Prize Draw Scams
Citizens are advised to stay alert and watch for common warning signs:
- Guaranteed prizes with minimal effort
- Requests for entry fees or ticket purchases
- Influencers claiming “limited time” offers
- No transparent rules, winners list, or legal registration
- No verifiable address or customer support
If it sounds too good to be true, it usually is.
What the Law Says About Lucky Draw Scams
Under Indian law, unauthorised prize chits and money circulation schemes are illegal. Promoting or participating in such schemes can attract serious legal consequences.
Commissioner Sajjanar reiterated that these activities are not harmless promotions but criminal offences that cheat the public.
Influencers Will Not Be Spared: Police Warning
VC Sajjanar made it clear that social media popularity or celebrity status offers no protection from the law. Anyone found cheating the public under the guise of online lucky draws will face strict legal consequences.
Cases will be registered under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, a law specifically designed to stop fraudulent money circulation and prize schemes.
The commissioner also stated that authorities may take strong measures, including:
- Criminal cases
- Arrests
- Seizure of assets
The message from law enforcement is clear: online fraud will not be tolerated, regardless of who promotes it.
How to Report Prize Draw and Lucky Draw Scams?
If you come across a suspicious prize draw, lucky draw, or influencer-led giveaway that asks for money, tickets, or payments, report it immediately. Quick action can help prevent further losses and protect others from falling into the same traps.
1. Collect and Preserve Evidence
Keep all proof safely, including:
- Screenshots of reels, posts, stories, and comments
- Payment receipts, UPI IDs, transaction IDs
- Chat messages, emails, phone numbers, and social media profiles
- Links used for payments or registrations
2. Report to Cyber Crime Authorities
- National Cyber Crime Helpline: Dial the Toll-Free helpline immediately
- National Cyber Crime Reporting Portal: File a detailed complaint with all evidence.
3. Report on Social Media Platforms
- Report the scam account or reel on Instagram, YouTube, Facebook, or X
- Select options like Fraud, Scam, or Misleading Financial Activity
4. Inform Your Bank or Wallet Provider
- Contact your bank, UPI app, or payment wallet
- Request them to flag the transaction and prevent further misuse
Need Help?
If you have participated in a lucky draw scheme, transferred money, or feel an influencer promotion may have misled you, do not stay silent.
Reach out to us if you need guidance or are unsure how to proceed. We can help you understand your options and the correct reporting process.
Conclusion
Prize draw and lucky draw scams are no longer limited to anonymous fraudsters. They are now being promoted openly by influencers using social media fame to gain trust and cheat the public. The warning from Hyderabad Police Commissioner V.C. Sajjanar is clear and firm: no one is above the law.
Citizens must remain cautious, think before paying, and question offers that promise big rewards for small payments. Awareness, timely reporting, and refusal to engage with suspicious schemes are the strongest defences against these growing online frauds.
