4 min readLast checked 11 Oct 2026

How to spot fake scheme and tender scams

How Indian small business owners can spot fake government scheme and tender scams: paid agents, look-alike portals and WhatsApp forwards, and how to verify and report them.

Government schemes and tenders attract fraudsters because the money is real and the rules are confusing. The good news is that most scams follow a few patterns. Learn them once and you will spot them every time.

Scam 1: the paid "agent" or "consultant"

The pitch: "Pay ₹X and we'll get your loan/subsidy sanctioned", "guaranteed approval", or "we have a contact in the department".

The facts:

  • For PMEGP, the Ministry of MSME has warned that private persons have been handing out fake "loan sanction letters" and charging money. It says the whole process runs online through one government portal run by KVIC, is totally free, and that no private party, agency, middleman or franchise is authorised to promote or sanction PMEGP projects (PIB, Ministry of MSME).
  • For Udyam, the official portal says registration is free and that, apart from the government portal and the government's single-window systems, no private system, agency or person is authorised to do MSME registration (Udyam portal).
  • For bank-linked schemes such as MUDRA, CGTMSE and PMFME, the loan decision is made by the bank. Nobody outside it can "guarantee" a sanction (see our scheme guide).

Paying a chartered accountant for real work, like preparing a project report, is different. A legitimate professional bills for the work done and never promises an approval.

Scam 2: fake and look-alike portals

Search results and ads often show websites that look official but charge a "registration fee". The Udyam portal itself carries the warning "Beware of Fake Sites" and says no other website, portal or app is official (Udyam portal).

How to check a site:

  • Look at the domain right before the first single slash. Official central portals end in .gov.in, for example udyamregistration.gov.in, gem.gov.in and eprocure.gov.in. A name like udyam-registration-online.com is not official, however it looks.
  • Type the address yourself or use a bookmark. Do not click ads.
  • Be suspicious of any "processing fee", "certificate fee" or "urgent fee" for a service the government provides free.

Scam 3: WhatsApp and social media forwards

Typical forwards read: "New scheme! Every MSME gets ₹5 lakh, apply in 24 hours", with a link, a form asking for your Aadhaar, bank details or OTP, or a request for a small "file charge".

What to do:

  • Never share an OTP, UPI PIN or net-banking password. No scheme needs them.
  • Look for the same scheme on the ministry's own website or on PIB. If you cannot find it, treat it as fake.
  • Send it to the PIB Fact Check Unit, which checks claims about the Government of India and charges no fee. You can WhatsApp +91 8799711259, email factcheck@pib.gov.in, or use factcheck.pib.gov.in (PIB Fact Check FAQ).

Scam 4: tender "fixing" and fake orders

Watch out for offers to "get you L1", sell "inside information" on a tender, or a "purchase order" from a government department that asks you to pay a registration or vendor fee first. Real tenders are published on official portals such as CPPP and GeM. Check that the tender ID exists on the portal before you do anything. Also note that GeM no longer charges sellers caution money (GeM), so be wary of anyone who asks for it.

A quick 5-point check

  1. Is the source a .gov.in site or an official bank?
  2. Is anyone asking for money to "process", "speed up" or "guarantee" something?
  3. Is anyone asking for an OTP, PIN or password?
  4. Is there pressure, such as "only today" or "last 50 seats"?
  5. Can you find the same thing on the official ministry or portal page?

Any "yes" to questions 2–4, or a "no" to 1 or 5, means stop and verify.

If you've been cheated

Act fast. The Ministry of Home Affairs runs the national cybercrime helpline 1930 and the National Cyber Crime Reporting Portal for reporting online financial fraud (MHA, Lok Sabha reply). Also tell your bank straight away, and keep screenshots, phone numbers and transaction IDs.

Last checked 11 Oct 2026 against the official sources linked in this guide.

Disclaimer: This guide is general information in plain English. It is not legal, tax or financial advice. Scheme rules, limits and portals change, so always check the official source linked above, and talk to your bank or a qualified professional before you apply or bid. OpportunityRaider is independent and is not a government website.

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