Yes, it is absolutely possible to hack PUBG mobile. People use modded apps.
What are modded apps?
People make a few changes in the code of the actual game. This enables the player to gain a few advantages. But they run on the same server as that of the original game. But these modded games require rooted phones.
What kind of hacks do people use?
1] Auto Aim - Just shoot anywhere near the enemy and this bot will automatically hit the enemy.
2] Enemy detector - It becomes difficult to find a hidden enemy. But this unethical enemy detector marks the hidden enemy.
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3] Speed Boost - Those who use a speed boost rapidly move from one place to another. Within a blink of an eye, the hacker gets disappeared.
4] Unlimited Ammo/Health - These hackers never die or never run out of bullets. They are fully equipped with enormous bullets and life.
5] Free Royal Pass points - These hackers get free access to premium clothes, dance moves, skins, etc. Ideally, they should have bought these points using money or earned them using skills. But hackers just get that for free.
6] Wall hack - Where they can shoot easily even through the wall. Majorly through one layer of object.
I have seen only these hackers. Please let me know if you have seen more.