It's played by deceiver when picked up (4)
I believe the answer is:
lyre
'it's played' is the definition.
(lyre is a kind of musical instrument)
'deceiver when picked up' is the wordplay.
'deceiver' becomes 'liar' (liar is a kind of deceiver).
'when picked up' shows a homophone (sound like) (pick up can mean to hear).
'liar' sounds like 'LYRE'.
'by' acts as a link.
(Other definitions for lyre that I've seen before include "Old instrument, like a harp" , "Ancient musical instrument - sounds mendacious" , "Ancient harp-like instrument" , "Music-maker" , "Plucked instrument" .)