Social ,28 Mar 2025

UPI Frauds: Common Types of UPI Scams & Prevention Methods

​The Unified Payments Interface (UPI) has revolutionized digital transactions in India, offering a seamless and efficient payment experience. However, this convenience has been accompanied by a notable increase in fraudulent activities. Recent data from the Finance Ministry highlights a significant surge in UPI-related frauds:​

• Fiscal Year 2022-23: 7.25 lakh fraud cases reported, amounting to ₹573 crore.​
• Fiscal Year 2023-24: 13.42 lakh cases, totaling ₹1,087 crore—a substantial 85% increase from the previous fiscal year.​
• First Half of Fiscal Year 2024-25 (up to September 2024): 6.32 lakh cases, with losses reaching ₹485 crore. ​

These alarming statistics underscore the pressing need for heightened awareness and proactive measures to safeguard against UPI frauds.​

Common Types of UPI Frauds

Phishing Scams: Fraudsters send deceptive links via SMS, email, or messaging apps, impersonating legitimate banks or UPI service providers. These links lead to counterfeit websites designed to steal user credentials, including UPI PINs and OTPs.​

Prevention:

• • Avoid clicking on unsolicited links.​
  • Verify website URLs before entering sensitive information.​
  • Use official bank websites and apps for transactions.​

 

Fake Customer Support Calls: Scammers pose as bank representatives or payment service providers, requesting verification of account details. They may ask for UPI PINs, OTPs, or personal information to conduct unauthorized transactions.​

Prevention:

• • • Remember, banks and UPI apps never request PINs or OTPs over the phone.​
    • If you receive a suspicious call, disconnect and contact the official customer support number.​

 

QR Code Scams: Fraudsters send QR codes, asking users to scan them to receive money. Scanning these codes often authorizes a payment instead of receiving one.​

Prevention:

• • • Avoid scanning unknown QR codes from strangers.​
    • Remember, scanning a QR code typically initiates a payment, not receipt of funds.​

 

Fake UPI Payment Apps: Some scammers create apps resembling genuine UPI platforms. Once users enter their details, these apps capture sensitive information and transmit it to malicious actors.​

Prevention:

• • • Download UPI apps only from official sources like Google Play Store or Apple App Store.​
    • Check app reviews and developer information before installation.​

 

Remote Screen-Sharing Frauds: Fraudsters persuade victims to install remote access apps, such as AnyDesk or TeamViewer, under the guise of resolving payment issues. Once installed, they gain full control of the user’s device, facilitating unauthorized transactions.​

Prevention:

• • • Refrain from installing screen-sharing apps for banking purposes.​
    • If such an app is inadvertently installed, disconnect from the internet immediately and uninstall it.​

 

SIM Swap Fraud: Scammers clone a user’s SIM card by deceiving the telecom operator into issuing a duplicate. Once activated, they can receive OTPs and access linked UPI accounts.​

Prevention:

• • • If your SIM stops working unexpectedly, contact your service provider immediately.​
    • Enable email notifications for transactions to detect unauthorized activity.​

 

Loan & Cashback Scams: Fraudsters send messages claiming users are eligible for instant loans or cashback rewards. When users click the link and provide their details, scammers misuse the information to steal money.​

Prevention:

• • Avoid clicking on unsolicited loan or cashback offers.​
  • Use only trusted banking and financial apps for loans and rewards.​

 

How to Protect Yourself from UPI Frauds

• Enable App Lock: Protect your UPI app with an additional layer of security, such as a fingerprint or PIN lock.​
• Set Transaction Limits: Most UPI apps allow users to set daily transaction limits to prevent large unauthorized transfers.​
• Monitor Bank Statements: Regularly review your bank statements and UPI transaction history for any suspicious activity.​
• Use Strong Passwords & PINs: Avoid using easily guessable PINs like "1234" or "0000" and change them periodically.​
• Report Fraud Immediately: If you suspect fraud, report it to your bank, the National Cyber Crime Portal (www.cybercrime.gov.in), or call 1930, the cybercrime helpline.​

 

Conclusion

While UPI has transformed the way we transact, awareness and caution are key to staying safe from fraud. By recognizing common scams and following best practices, users can enjoy secure and hassle-free digital payments. Stay informed, stay vigilant!​