Phantom Vendor Creation and Invoice Scam

How Phantom Vendor Creation and Invoice Scam Works

Overview: The Phantom Vendor Creation scam targets Indian companies of all sizes by introducing completely fake suppliers. Fraudsters pose as legitimate businesses, submit fake bids, and eventually invoice for goods or services never actually provided. By using stolen or forged identity documents like PAN and GSTIN, they blend in with real vendors and exploit weak onboarding checks. How It Works: 1. Scammers approach companies via LinkedIn, cold emails, or phone calls, claiming to be new suppliers offering competitive prices. 2. They submit forged KYC documents and may produce shell websites or bogus references. 3. After 'winning' a bid or getting informal nods from fake internal contacts, they generate invoices for undelivered goods/services. 4. Payment instructions direct funds to personal or impersonated accounts often via UPI or IMPS. 5. Once the payment is processed, the vendor disappears and the company is left with untraceable losses. India Angle: This scam is highly prevalent among SMEs and even larger corporates in cities like Mumbai, Gurgaon, Pune, and Ahmedabad. Fraudsters exploit India's reliance on LinkedIn and digital vendor management systems, and make use of UPI and Aadhaar-linked accounts that are hard to trace. Real Examples: - An HR manager in Pune receives a LinkedIn proposal from 'Premier Resources Pvt. Ltd.' (recently registered), claiming to supply office hardware. After sending KYC documents and invoices, they push for immediate UPI payment. - A cold caller claims he's from an approved supplier but insists on payment after 'verbal approval' by a non-existent executive. Red Flags: - Vendors with no online presence or references. - GSTIN registration within the past 6 months and no transaction history. - Invoices demanding payments to personal UPI or IMPS IDs. - No traceable physical address [ADDRESS_REDACTED]. Protective Measures: - Rigorously verify any new vendor’s credentials, including GSTIN and physical address. - Call official company numbers to validate supplier identity. - Cross-check vendor KYC details with government databases where possible. - Never pay against invoices without a formal purchase order and written approval from recognised company personnel. If Victimised: - File a report with your local cyber cell (1930) and at cybercrime.gov.in. - Inform your bank immediately to freeze outgoing payments. - Notify relevant GST and tax authorities to flag forged identity use. Related Scams: - Stolen PAN/Aadhaar Identity Misuse - Fake LinkedIn Job Offer Cons - Shell Company Tender Frauds

Visual Intelligence:

BharatSecure's AI has identified this as a used in scams targeting Indian users.

Who Does Phantom Vendor Creation and Invoice Scam Target?

General public across India

Red Flags — How to Identify Phantom Vendor Creation and Invoice Scam

• Vendors lacking online presence and reviews
• GSTINs registered recently with no business history
• Invoices sent without a formal purchase order
• Requests for UPI/IMPS payment to personal accounts
• References only to unverifiable individuals

What To Do If You Encounter Phantom Vendor Creation and Invoice Scam

1. Do not click any links or share personal information
2. Block and report the sender immediately
3. Report at cybercrime.gov.in or call 1930
4. Inform your bank if financial details were shared

How to Report Phantom Vendor Creation and Invoice Scam in India

• Call 1930 — National Cyber Crime Helpline (24x7)
• File a complaint at cybercrime.gov.in
• Contact your bank immediately if money was lost
• Call RBI helpline: 14440 for banking fraud

Frequently Asked Questions

What is Phantom Vendor Creation and Invoice Scam?

Overview: The Phantom Vendor Creation scam targets Indian companies of all sizes by introducing completely fake suppliers. Fraudsters pose as legitimate businesses, submit fake bids, and eventually invoice for goods or services never actually provided. By using stolen or forged identity documents like PAN and GSTIN, they blend in with real vendors and exploit weak onboarding checks. How It Works: 1. Scammers approach companies via LinkedIn, cold emails, or phone calls, claiming to be new suppli

How does Phantom Vendor Creation and Invoice Scam work?

Overview: The Phantom Vendor Creation scam targets Indian companies of all sizes by introducing completely fake suppliers. Fraudsters pose as legitimate businesses, submit fake bids, and eventually invoice for goods or services never actually provided. By using stolen or forged identity documents like PAN and GSTIN, they blend in with real vendors and exploit weak onboarding checks. How It Works:

How to protect yourself from Phantom Vendor Creation and Invoice Scam?

Do not click any links or share personal information Block and report the sender immediately Report at cybercrime.gov.in or call 1930 Inform your bank if financial details were shared

How to report Phantom Vendor Creation and Invoice Scam in India?

Report to cybercrime.gov.in or call 1930 (National Cyber Crime Helpline). You can also contact your local police station's cyber cell.

Verify Any Suspicious Message

Check any suspicious message, link, or call for free at bharatsecure.app. BharatSecure uses AI to detect scams in real-time and protect Indian users.