Introduction

Technology has revolutionised every aspect of your life, including how you transact online. Gone are the days when you had to go to the bank for money transfers. These days, you can make payments instantaneously through a single click. One such mode that simplifies online payments is the Unified Payments Interface (UPI), which you may be using in your daily lives like millions of users.

From instant and simplified transactions to 24/7 accessibility, UPI offers you various benefits. However, it comes with certain drawbacks, too. A prominent drawback is the rise in UPI fraud. The only way you can tackle this problem is by becoming aware of it and taking steps to avoid it. Keep reading to learn about UPI frauds, common scams, and tips to protect yourself.

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Understanding UPI Fraud

Any fraudulent activity or scam within India’s UPI system is termed UPI fraud. Such frauds in the digital realm are trickier for you to identify and resolve than the ones committed in the physical realm. UPI enables you to make instantaneous and easy mobile phone transfers to users across different bank accounts. However, with the increase in UPI’s popularity, there’s also been an increase in UPI frauds. Fraudsters use various techniques to exploit lingering gaps in the UPI ecosystem. Fraudsters can access your accounts and authorise fraudulent transactions by tricking you into divulging sensitive information.

Common Scams

Here are some of the most common UPI scams that you have to be aware of.

• Phishing

The most common technique for executing UPI fraud is phishing. In this, you are asked to share sensitive personal information, such as your UPI PINs, passwords, etc., through phone calls, emails, or messages. If you inadvertently divulge such information, the scammers instantly use it to transfer funds from your account to their personal accounts.

• QR Code Fraud

In this, scammers send you QR codes that you are asked to scan to receive money. When you scan such codes, you unknowingly grant access to transfer funds to the fraudsters.

• Fake UPI Request

Another UPI scam that’s becoming alarmingly common is where scammers send you fake UPI payment requests. The fake request usually seems authentic, and you may authorise them. By doing this, you unwittingly fall prey to scammers.

• Remote Access Fraud

In this, you are convinced by scammers to download different remote access applications such as TeamViewer, AnyDesk, etc., to resolve a so-called technical issue. However, once any such app is downloaded, the scammer gains remote access to your device and sensitive information on it, such as your UPI credentials.

• SIM Swap Fraud

In this, fraudsters clone your phone number or SIM and use it to authorise UPI transactions and obtain OTPs. Unfortunately, these frauds aren’t easy to identify until you suffer a noticeable financial loss.

Tips to Prevent UPI Frauds

Prevention is better than cure, and this holds true for UPI frauds, too. The simplest way you can avoid falling prey to UPI fraud is to know what you can do to prevent them. Here are some tips to remember:

• You should keep all your sensitive and private information, such as UPI passwords, PINs, OTPs, and IDs, safe. Also, be mindful of whom you share such information with.
• You should always identify and verify the source of any payment requests, calls, or messages to ensure they are genuine.
• You should scan QR codes only from trusted sources and double-check them with the sender.
• You should regularly review your bank statements to monitor your UPI activity and look for any fraudulent ones.
• You should avoid sharing your contact number with unknown individuals and websites.
• You should always download applications from trusted and authorised sources and never click on any links from unknown or suspicious numbers.

What Should Victims of UPI Frauds Do?

Sometimes, even after you take precautions, you can fall prey to UPI scams. In such situations, follow the steps given below:

• Immediately contact your bank and alert them when you notice the UPI fraud. To prevent further loss, freeze your bank and UPI account until the issue is resolved.
• Contact your local cybercrime cell and lodge a complaint about the fraud. You can also report frauds telephonically through the National Cybercrime Reporting Cell.
• Once you alert the concerned authorities, the next step in damage control is to change your UPI PIN.

Conclusion

UPI has revolutionised the world of financial transactions and made it easier, more convenient, accessible, and efficient for you. Unfortunately, it also allowed fraudsters to prey on you. To safeguard your finances, be vigilant and update yourself about the common scams used and tips to protect yourself. Awareness and prompt action are keys to fighting and preventing UPI fraud.

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