Cyber LawEmployment LawInternship Related Frauds: Legal Safeguards and Remedies Every Student Must Know

For today’s students and fresh graduates, internships are no longer optional—they are a must-have stepping stone to build a career. Whether it’s gaining practical exposure, understanding workplace culture, or networking with industry professionals, internships bridge the crucial gap between learning and employment.

But in recent years, this bridge has also become a trap for unsuspecting students. Fake offers, fraudulent portals, and misleading ads are on the rise, preying on ambitious young minds. Many end up losing money, giving away personal data, or simply wasting their valuable time on sham assignments.

This blog will guide you through:

• How internship scams operate
• Legal safeguards available under Indian law
• Remedies if you are cheated
• Preventive steps to protect yourself

Why Internship Frauds Are Increasing

1. Digital-first applications – With most internships now advertised on job portals, social media, or messaging apps, it’s easier for fraudsters to appear “legit.”
2. High demand from students – Every graduate wants an internship, making them easy targets.
3. Low awareness of laws – Most students don’t know that fake internships can be criminal offences.
4. Minimal oversight – Unlike campus placements, internships often lack structured vetting by colleges.

Common Red Flags of Fake Internships

Here are patterns to watch out for:

• No corporate footprint – No official website, no verified LinkedIn presence, no registered address.
• Unprofessional communication – Entirely on WhatsApp, Telegram, or Gmail accounts instead of official domains.
• Upfront payments or fees – Demands for “registration fees,” “training charges,” or “security deposits.”
• Too good to be true – High stipends, zero workload, and no interview process.
• Vague job descriptions – Work limited to liking posts, promoting products, or doing repetitive data entry.
• Sensitive data requests – PAN, Aadhaar, or bank details without a proper legal framework.
• Referral or MLM model – Pressure to bring in more students, buy a certification, or invest in crypto/trading apps.

Golden Rule: If something feels wrong, it probably is.

If in doubt, Check the CIN(Corporate Identification Number) of the company offering internship. All the companies registered in India by the Registrar of Companies (RoC) have this.

Legal Safeguards: Your Rights Under Indian Law

If you face fraud in the name of an internship, several Indian laws can help you seek justice:

1. Bharatiya Nyaya Sanhita (BNS), 2023

• Sec 318 – Cheating and dishonest inducement (applies when you pay for a fake internship or don’t get promised stipends).
• Sec 336 – Forgery and using forged documents (covers fake offer letters with stolen logos).

2. Information Technology Act, 2000

• Sec 66C – Identity theft (if Aadhaar, PAN, or bank details are misused).
• Sec 66D – Cheating by impersonation through computer resources (fake companies, impersonation emails).

3. Digital Personal Data Protection (DPDP) Act, 2023

• Right to Consent – No platform can collect your personal data without informed consent.
• Right to Correction/Erasure – You can demand your data be corrected or deleted.
• Right to Grievance Redressal – You can escalate complaints to the Data Protection Board of India (DPBI).
• Special Protection for Under-18s – Requires parental consent and stricter safeguards.

4. Consumer Protection Act, 2019

• Fake internship ads qualify as misleading advertisements.
• Penalties:
  • Up to Rs10 lakh fine for first offence.
  • Up to Rs 50 lakh fine and imprisonment (up to 5 years) for repeat offences.

5. Trademark Act, 1999

• Misuse of logos of IITs, IIMs, Infosys, or any brand in offer letters is punishable.

6. IT (Intermediary Guidelines), 2021

• Platforms like LinkedIn, Instagram, and Facebook must remove fake ads within 24–36 hours of being flagged.
• They are required to have a grievance redressal mechanism and compliance officers.

Remedies: What to Do If You Are Cheated

If you fall victim to an internship fraud, don’t remain silent. Here’s a step-by-step action plan:

1. Collect Evidence – Save emails, WhatsApp chats, payment receipts, offer letters, and screenshots.
2. File a Cybercrime Complaint – Use the official portal www.cybercrime.gov.in. or Dial 1930 to file complaint.
3. Report Fake Ads – Use “Report” tools on LinkedIn, Instagram, or job portals. Send a written complaint to their grievance officer.
4. Approach the CCPA – File a complaint with the Central Consumer Protection Authority for misleading ads.
5. Involve Your College/Institute – Placement cells and student unions can issue circulars warning others.
6. Consult a Lawyer – Especially if there’s financial loss, identity theft, or misuse of documents.

Expert Insight

These concerns were highlighted by Adv. Ajay Sharma, Techno-Legal Advisor at CorpoTech Legal, while speaking with students during a webinar organised by Naksh Foundation and the Rotaract Club of Young Achievers. He explained how fraudsters are becoming increasingly sophisticated—using cloned websites, fake LinkedIn profiles, and even forged offer letters with IIT/IIM logos.

He urged students to be proactive in verifying opportunities and reminded them that the law is firmly on their side. With the DPDP Act, 2023, stronger IT rules, and the Consumer Protection Act, students now have more tools than ever to fight back. His closing remark resonated deeply: “Not every glittering offer is golden. If you have doubts, verify before you apply.”

✅ Preventive Checklist for Students

• Verify the company – Check MCA (Ministry of Corporate Affairs) registry, LinkedIn, and reviews. Ask the CIN (Corporate Identification Number) of the company, and check online about the company.
• Insist on an offer letter – Role, duration, stipend, and reporting structure must be mentioned.
• Use a secondary email – Keep your primary accounts safe.
• Never share sensitive data – PAN, Aadhaar, or bank details should only be given with legal backing.
• Take guidance – Consult your career services office or a trusted mentor.
• Stay cyber secure – Install antivirus software and beware of phishing links.

Real-Life Example

Ritika, a final-year student from Delhi, received an email offering an “IIT Delhi Internship” with a stipend of Rs 15,000. She was asked to pay Rs 3,000 as a “training fee.” The offer letter carried IIT’s logo. Luckily, she checked IIT Delhi’s official website and found a fraud alert. She saved herself Rs 3,000 and avoided sharing personal documents that could have been misused for loans.

Moral: Always cross-verify. Institutions rarely, if ever, charge students for internships.

Final Word

Internships are supposed to build your future, not break your trust. Unfortunately, scammers exploit the high demand for internships in India. But with vigilance, awareness, and knowledge of your rights, you can protect yourself.

Remember:

• If you spot red flags, walk away.
• If you fall victim, take action—don’t let fraudsters walk free.

An internship should be a win-win for both you and the organization—not a one-sided trap. Stay alert, stay informed, and ensure your career journey remains safe and authentic.