Scams surge in creator economy as fake brands, fraud agencies target influencers

"Being a law student, I never thought I would ever become a victim of scammers. But last year, I lost Rs 1 lakh after a small fashion brand emailed me for collaboration. The company turned out to be non-existent--it was an unregistered entity," a lifestyle creator said on the condition of anonymity.

In the era of social media, creators--big or small--have become one of the softest targets for hackers and fraudsters.

Ritesh Ujjwal, co-founder of Kofluence, said there are several kinds of scams emerging from the growing interest in becoming a creator. One such scam is the steadily growing 'work-from-home' repost scam, which is targeting aspiring creators. In these cases, fraudsters promise payments for reposting content but first demand money in the form of registration fees, product purchases, or access fees to a campaign. Once the initial payment is made, the scammers disappear.

Ujjwal highlighted another digital malpractice called "data harvesting schemes", where individuals impersonate legitimate brands to steal personal data and account credentials from creators. These scammers may mimic real brand handles or websites, changing only a letter or symbol to trick creators into sharing sensitive information.

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However, the primary target of the hackers or scammers are often not the creators themselves but their followers. Annkur P Aggarwal, founder of Mango Creations, explained, "When hackers take over a YouTube channel, they often change its name and persuade users to make fraudulent transactions. On Instagram, they directly message followers asking for money".

'Easy targets'

Experts say nano influencers (1,000- 10,000 followers) and micro influencers (10,000 to 100,000 followers) are especially vulnerable to frauds, scams, and extortions. Creators who manage their own accounts, juggle multiple linked services, and reuse passwords are prime targets for phishing, account takeovers, and SIM-swap scams, Sujit Patel, CEO & MD of SCS Tech India Pvt. Ltd said.

Hitarth Dadia, CEO and Partner, NOFILTR.GROUP, pointed out that large creators are often better protected from scams and fake collaborations because they have experience and business managers handling operational details. However, they face a greater risk of intellectual property theft. "We have seen cases where individuals or coordinated groups, posing as agencies, approach top-tier creators to extract proprietary content strategies and audience insights for competitive intelligence," Ujjwal added.

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Experts have also noted a pattern--creators from non-metro cities are easier targets.

According to an IAMAI report, more than 60% of India’s internet users are from non-metro areas, which means a majority of the country’s online audience comes from smaller cities and towns. As a result, many new creators are emerging from Tier-2 and Tier-3 cities. However, because these creators often lack informal knowledge networks, industry events, and agency support, they are less likely to have access to organic warning systems that help prevent fraud.

Ujjwal also pointed out that scammers exploit language barriers in smaller towns. "They may circulate offers or contracts in English or deliberately complex language to confuse creators or get them to agree to unfavourable terms," he said.

'Fraud agencies'

It's not just individual hackers targeting creators--agencies are also exploiting the gold rush in the creator economy.

Storyboard18 spoke to a dozen nano and micro Instagram influencers, many of whom admitted they had been victim of fake collaborations or financial fraud at least once. Most shared experiences of brands or agencies ghosting them when asked for payments. One creator even took a legal action against a Gurugram-based influencer marketing agency that had a tie-up with a major ecommerce platform.

"I worked on 4-5 videos for the platform, but when the payment time came, I was made to wait for 4-5 months and still didn't get my fees," the creator said.

An industry expert claimed that several shell companies have sprung up in Delhi-NCR targeting smaller creators--asking them to film product content, then ghosting them or delaying payments for months.

While most brands and agencies operate in good faith, problems typically arise from a few bad actors or middle managers who misrepresent opportunities or delay critical communications.

Aggarwal shared one such incident, "A D2C iPhone cover brand asked my company to create a video ad. We delivered, but after receiving the video, they cut all ties with us and used the content on their platforms without paying".

Another creator with eight lakh followers said that she avoids influencer marketing agencies entirely. "These agencies take 20% of the fee brands offer. Some focus only on big creators, meaning large brand deals slip away from us. And even if we secure a deal independently, we still have to pay them their 20%," said Vanshika (name changed).

'Protection by platforms'

Creators currently have limited protection against fraud and identity theft on platforms like Instagram, YouTube, and Snapchat. While Instagram offers verified business badges and a Creator Safety program, its focus is largely on protecting advertisers from fraud rather than creators. YouTube also runs creator safety awareness programs, which mainly address copyright issues and monetization protections, which don't cover social engineering attacks.

"We run a community called Creators Camp where people can take guidance from senior creators and share experiences. We also organize online events called CreatorsCamp.in," Aggarwal said.

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However, LinkedIn can help creators verify whether a brand’s email ID is legitimate by allowing them to research the company profile and domain.

'What does Indian law say?'

The Indian legal framework offers several remedies for creators who fall victim to scams.

The Information Technology Act, 2000, criminalises identity theft (Section 66C), cheating by personation (66D), and privacy violations (66E), with additional protections under the Indian Penal Code for defamation and online harassment. The Digital Personal Data Protection Act, 2023, adds a modern privacy layer. Victims should report incidents via the National Cyber Crime Reporting Portal (cybercrime.gov.in) and coordinate with local police for FIRs, while preserving all digital evidence, Patel said.

Sonam Chandwani, Managing Partner KS Legal & Associates, explained that influencers in India targeted by impersonation or fake collaboration scams can seek protection under several legal provisions, though the remedies are scattered across statutes. The most immediate remedy is to file a complaint with the cybercrime cell for impersonation and fraud under the IT Act.

Simultaneously, criminal charges under the Indian Penal Code can be filed for forgery, defamation, and cheating. While there’s no specific statute solely for influencers, their image and likeness are protected under general personality rights, allowing them to seek injunctions and compensation for unauthorized use. Platforms hosting fraudulent content are also legally required to act upon complaints; failure to do so could cost them their liable immunity.

The individual or entity engaging in impersonation or faking collaborations faces both criminal and civil penalties. Criminally, such offences can lead to imprisonment of up to three to seven years along with fines under the IT Act and IPC. Additionally, any revenue earned through fake collaborations can be seized for restitution.

'Precautions'

Cybersecurity expert Ritesh Bhatia advises small creators to verify brands through official websites and company email IDs, and to remain cautious even if contacted via Gmail accounts. He also recommends insisting on formal contracts and never sharing personal details over DMs.

"If an offer feels too good to be true, it’s usually a scam in disguise," he said.

"I always check the sender's email id, verify information on Google, and request the agency's GST number to ensure the company is legitimate", said Shubhi, a lifestyle creator.

For larger creators, managing and filtering deals is easier. But for smaller creators, the desire for quick success often makes them more vulnerable to scammers, said a financial creator.

Aggarwal added that he only makes a brand video live after receiving payments. "I never share the video unless the money is paid".

Common red flags include generic Gmail or Yahoo addresses like xyzbrandcollab@gmail.com instead of a professional domain, poor grammar or spelling in communication, urgent calls to act such as “Only 3 spots left!” or “Pay today!”, requests for upfront money, suspicious links like insta-verification.info, and no verifiable presence on LinkedIn or the brand’s official website.

"To stay secure, creators should enable multi-factor authentication (preferably via authenticator apps), use unique passwords stored in a password manager, and lock SIM cards with carrier port-out restrictions. Maintaining separate professional and personal accounts, regularly revoking unused third-party app access, and verifying unsolicited brand approaches before engagement can further reduce the risk of compromise," Patel said.