Fraudsters are becoming increasingly cunning, creating fake links and websites that mimic legitimate government portals. Examples include deceptive claims about PM Kisan subsidies, scholarships, or Ayushman Bharat health cards. Many unsuspecting citizens—both laypersons and even some legal professionals fall prey to these traps, risking identity theft and financial loss.
Below, we’ll empower you with the knowledge to spot fake schemes, understand your legal protections, and point you to more resources. We will also demystify technical jargon and integrate updates from Indian cybercrime law, including provisions under the Bharatiya Nyaya Sanhita (BNS) 2023.
What Are Fake Government Subsidy Schemes and Why Are They Dangerous?
Fake subsidy or grant schemes are fraudulent offers, often spread through:
- WhatsApp forwards
- Social media ads
- SMS and email campaigns
- Dodgy websites
These scams promise easy financial assistance (like the popular PM Kisan subsidy or new “earn ₹10,000 a day” programs). The links typically direct you to imitation websites that steal your personal data, sometimes even convincing you to transfer money (“processing fees”).
Modus Operandi
Scammers exploiting fake government grant or subsidy offers use a sophisticated, multi-step process designed to appear official and build trust. Here’s how they typically operate:
- Creation of Fake Portals and Communications:
- Fraudsters set up websites that mimic official government portals, frequently using similar logos and color schemes. These sites often use misleading domain names resembling real government addresses (like .org.in or minor alterations of .gov.in).
- They send mass communications—SMS, WhatsApp forwards, emails, and even fake letters—claiming you are eligible for a special subsidy, grant, or scholarship (such as PM Kisan, Ayushman card, or central scholarship schemes).
2. Social Engineering and Data Harvesting:
- Messages often urge urgency (“Apply before the deadline!”) and direct recipients to the fake site.
- Fraudsters trick people into filling out forms where they unknowingly share highly sensitive details such as their Aadhaar number, bank account information, PAN, and even OTPs.
- Some schemes involve fake mobile apps that steal data and intercept OTPs or bank credentials, a method recently exposed in several large-scale busts.
3.Payment Extraction:
- The scam typically culminates with requests for nominal “processing fees” or “application charges.” Victims are instructed to transfer money digitally, sometimes through UPI, or even cash deposits.
- Follow-up scams may demand additional payments for “clearance,” “taxes,” or “file opening charges,” becoming more aggressive if the victim is already ensnared.
4. Document and Credential Forgery:
- Many fraudsters forge government letterheads, fake signatures, and send doctored documents (for example, approval letters purportedly from a senior official) to add legitimacy.
- Some groups go so far as to offer fake interview calls or create robo-calls using AI tools, making the fraud even more convincing.
5. Disappearance and Laundering:
- Once funds are received, scammers typically break contact or request further payments under new pretexts.
- Laundered money is often funneled through multiple accounts including those of unwitting individuals or shell entities making recovery difficult.
How to Identify Genuine Government Portals vs. Fake Links
Key Verification Steps
- Check the Domain:
- Official Indian government websites always use .gov.in (e.g., https://pmkisan.gov.in).
- Sites with only .in, .org, or weird subdomains can be suspicious.
2. Cross-check with Official Sources:
- Use official government handles like PIB Fact Check on X (Twitter).
- Visit the parent ministry’s website to verify any claim.
3. Look for Cross-References:
- Authentic portals often link to/from other government sites and are mentioned in reputable news or government circulars.
- Fake sites rarely have this web of credibility.
4. Scrutinize Content and Design:
- Official sites are professionally written and updated.
- Common red flags include grammatical errors, sensational headlines (“Earn ₹10,000 a day!”), or requests for unnecessary personal information.
5. Contact for Clarification:
- If in doubt, reach out to the ministry or verify with cyber crime cells.
- You can tweet to @PIBFactCheck or use helplines for confirmation.
Technical Terms Explained
- Phishing: The act of tricking you into giving up sensitive info (like logins or OTPs) via fake websites or emails.
- Identity theft happens when someone poses as you, often misusing your personal details to commit fraud or even open bank accounts in your name.
- URL Spoofing: Creating a fake web address that looks like a real one.
Legal Protections:
Bharatiya Nyaya Sanhita (BNS) 2023
India’s BNS 2023, effective July 1, 2024, modernizes the approach to cyber fraud. The law:
- Expands the definition of cyber crimes, including online fraud, identity theft, and phishing
- Imposes penalties from 3 years up to life imprisonment for severe cases.
Key Provisions:
- Online fraud and identity theft are distinct offenses.
- Crimes involving economic loss, organized syndicates, or repeat offenders attract harsher sentences.
- Clearer structure for investigation, with technological tools used at every stage (e.g., digital evidence, quick-response mechanisms).
Other Relevant Laws
- Information Technology Act, 2000: Section 66C (identity theft), Section 66D (cheating by personation using a computer resource).
- Digital Personal Data Protection Act, 2023: Penalties for unlawful collection or use of your personal data.
If you suspect you are a victim:
- Helpline 1930 (for reporting cyber financial fraud).
- Contact your local cybercrime police station.
Digital Hygiene: Best Practices to Stay Safe
Checklist Before Clicking “Apply”
- Double-check the URL: Is it really .gov.in?
- Search the alleged scheme on official government portals.
- Never share your OTP, full Aadhaar, or bank details if unsure.
- Use government apps/portals such as DigiLocker or UIDAI for document verification not via random links.
- Educate your family and friends, especially those less tech-savvy.
If You’ve Already Shared Data
- Contact your bank immediately and freeze/safeguard your account.
- Register your grievance through the National Cyber Crime Reporting Portal to ensure timely action against cyber fraud.
- each out to your nearest police station and make use of the cybercrime helpline without delay.
Technical Terms
- Portal: An official online platform by the government for schemes or services.
- Authentication: Verifying your identity (usually with Aadhaar, OTP, etc.).
- Spoofing: A fake that mimics a real website or document.
Related News & Growing Threats
- In 2025, India is staring at cybercrime losses estimated at nearly ₹20,000 crore, driven largely by the rapid rise of AI-powered scams and deepfake-driven frauds.
- Fake approval letters, using AI tools, are proliferating.
- Even GST and tax-related subsidies are targeted by scammers.
- Advanced deepfake and AI content is making scams more convincing, requiring new vigilance.
Conclusion
Fake government subsidy and grant scams are a growing threat, blending technology, social engineering, and psychological manipulation. Fraudsters capitalize on the trust people place in official schemes and exploit news cycles about real government benefits.
With India’s cybercrime landscape evolving rapidly in 2025, vigilance is the best defense. Knowing the typical modus operandi of imitation websites, urgent yet enticing offers, requests for sensitive data, and small upfront payments is key to not falling prey. Stay informed, stay skeptical, and help build a cyber-aware India.
Also read about Don’t Fall for the PAN 2.0 Trap: How to Stay Safe and What the Law Says
