I received a message saying I've won a lottery/prize but need to pay a fee first, is this a scam?

I got an email/SMS/WhatsApp message claiming I've won a huge lottery or prize from a foreign company and need to pay processing fees or taxes to claim it. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

I received a message saying I've won a lottery/prize but need to pay a fee first, is this a scam? is governed in India primarily by Bharatiya Nyaya Sanhita, 2023 – Section 318, Information Technology Act, 2000 – Section 66D and Foreign Exchange Management Act, 1999. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

This is almost always advance-fee fraud, a form of cheating under Section 318 BNS, aggravated to Section 66D IT Act cheating by personation where a fake company/lottery organisation identity is used to induce payment.

Genuine lotteries never require winners to pay 'processing fees', 'customs duty' or 'taxes' upfront before releasing winnings — legitimate prize disbursement deducts applicable tax (like TDS under Section 194B of the Income Tax Act) from the prize itself, it is never collected separately from the winner beforehand.

Foreign lottery participation itself is also restricted under FEMA, 1999 for Indian residents, meaning many of these schemes claim to be 'international lotteries' you never actually entered, which is itself a red flag of fraud.

Once you pay one 'fee', scammers typically invent further fees (insurance, bank charges, etsc.) to extract more money — the correct response is to stop all payment and communication at the first request itself.

Report the sender's number/email/website to cybercrime.gov.in, and if any payment has already been made, follow the standard fund-trace process through your bank and the 1930 helpline immediately.

What to do next: 1) Do not respond to or pay any 'fee' demanded to release a prize; 2) Block the sender and preserve the message as evidence; 3) Report at cybercrime.gov.in, especially if any payment was made; 4) Warn friends/family circulating similar messages.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Bharatiya Nyaya Sanhita, 2023 – Section 318 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.

Disclaimer: This information is for general awareness and does not constitute legal advice. Statutes and their interpretation change, and outcomes depend on the facts of your case. Please consult a qualified advocate before acting on it.