Unified Payments Interface (UPI) has transformed digital payments, but the rise in UPI fraud complaints highlights growing security concerns. Many users struggle with how to get money back from UPI frauds or filing a UPI fraud complaint with RBI; therefore, this emphasizes the need for awareness. Moreover, the Reserve Bank of India has guidelines to protect users, specifically addressing questions like whether UPI transactions are limited to prevent misuse. Users can stay secure in the digital payment landscape by understanding common scams and, consequently, adopting preventive measures. In this blog, we will help you explore UPI frauds and, in turn, provide actionable tips to safeguard your hard-earned money.
| The rate of UPI fraud in India has been increasing. In FY24, there were 1.34 million reported cases, amounting to a loss of Rs 1,087 crore. This represents an 85% increase from the previous year.
UPI fraud occurs when an individual or entity illicitly obtains access to a user’s UPI account through various means, resulting in unauthorized fund transfers. |
Common Types of UPI Frauds
Many victims are unsure how to get money back from UPI frauds, while others seek assistance through the UPI fraud complaint RBI mechanism or a UPI fraud complaint number provided by banks. Understanding UPI-related frauds is essential. Moreover, being aware of these scams and the RBI guidelines for UPI frauds in banks is crucial for securing your finances and filing timely complaints. Therefore, below are the most common types of UPI frauds and how they operate.
Phishing Scams
Fraudsters use fake emails or messages to direct users to fraudulent websites or apps. These platforms trick victims into entering sensitive details such as UPI PINs, passwords, or bank account credentials, which are then misused to access their funds.
Vishing Attacks
Scammers typically pose as representatives from banks or government institutions. Moreover, through persuasive phone calls, they skillfully manipulate users into sharing personal details like OTPs, UPI PINs, or account numbers. Often, they claim to be resolving fake account issues, making their deception even more convincing.
Fake UPI Payment or Transfer Requests
Scammers typically send counterfeit UPI payment confirmations in an attempt to convince users of a completed payment. Furthermore, they may send fraudulent transfer requests with the intention of tricking users into unknowingly transferring funds.
QR Code Scams
Fraudsters generate malicious QR codes that, when scanned, redirect users to fake websites or fraudulent apps, allowing the scammers to capture sensitive UPI credentials and steal money.
Impersonation
Scammers often impersonate trusted organizations, family members, or friends. As a result, they gain users’ trust and, in turn, persuade them to share sensitive data or approve payments.
SIM Cloning
Fraudsters typically clone a user’s SIM card to intercept OTPs. As a result, they can reset UPI PINs, thereby gaining unauthorized access to accounts and conducting fraudulent transactions.
Screen Monitoring App Exploitation
Malicious screen-sharing apps like AnyDesk or TeamViewer are used to secretly monitor user activity. Fraudsters use these tools to steal UPI PINs, OTPs, or banking details during a transaction.
Malware Attacks
Scammers often install malware on devices through fake email attachments, links, or unsecured websites. As a result, these malicious programs extract sensitive data, thereby enabling unauthorized access to UPI-linked accounts.
Fake Sellers in Online Marketplaces
Scammers pose as sellers on e-commerce platforms, accepting payments for products that are either never delivered or counterfeit, causing financial loss to buyers.
Money Mule Schemes
Fraudsters use intermediary accounts, known as money mules, to launder stolen money. As a result, victims unknowingly transfer funds to these accounts, which in turn makes it harder to trace the fraud.
Collect Requests
Scammers exploit the “collect payment” feature in UPI apps by sending deceptive requests. Consequently, users, often unaware, approve these requests, ultimately leading to unauthorized transactions.
Deceptive UPI Handles
Fraudsters, in an attempt to deceive users, create fake UPI IDs resembling legitimate ones. As a result, they trick individuals into transferring money to the wrong account, often by imitating trusted entities.
Recent UPI Scams in India
With scams constantly evolving, therefore, it’s vital to understand how fraudsters operate to file an effective UPI transaction fraud complaint and safeguard your money. To help you stay informed, below are the most recent scams, their tactics, and prevention tips.
1. Jumped Deposit Scam
How It Works: Scammers initially deposit small sums into your account. Subsequently, they fabricate stories requesting a larger refund. As a result, victims unknowingly enter their UPI PIN to authorize these transactions, leading to financial loss.
Tactics Used: Fraudsters exploit trust, urgency, and curiosity by pretending it was a mistaken transfer or an emergency.
2. Collect Request Fraud
How It Works: Fraudsters often send spam ‘collect money’ requests that are cleverly disguised as legitimate payment approvals. Consequently, approving these requests can result in unauthorized deductions.
Tactics Used: Fraudsters attach deceptive labels like subscription renewals or bill payments, confusing users into approval.
3. Fraudulent QR Code Scams
How It Works: Fake QR codes shared by scammers lead users to transfer money instead of receiving it. These scams often occur during online purchases or refunds.
Tactics Used: Fraudsters impersonate sellers or service providers, urging victims to scan QR codes for payments or refunds.
Steps To Stay Safe from UPI Frauds
By following these steps, you can minimize the risk of falling victim to UPI scams and safeguard your finances effectively
1. Never Share Your UPI PIN: Your UPI PIN is only for authorizing transactions. Avoid sharing it with anyone, even if they claim to be from your bank or a trusted organization.
2. Verify Requests Before Approving: Double-check all collect requests or payment approvals. Decline requests from unknown sources or those with suspicious descriptions.
3. Avoid Clicking on Unverified Links: Refrain from clicking on links in unsolicited emails or messages. Fraudulent links can lead to phishing scams or malware installation.
4. Do Not Scan Unverified QR Codes: Only scan QR codes from verified sources. Fraudulent QR codes can redirect funds to scammers’ accounts instead of making payments.
5. Report Suspicious Transactions Immediately: Use UPI fraud complaint platforms or contact your bank immediately if you suspect unauthorized activity. Reporting quickly can improve the chances of recovery.
6. Stay Skeptical of Unexpected Deposits: If you receive an unexpected deposit, verify it with your bank. Scammers may use this to build trust and initiate the “Jumped Deposit Scam.”
7. Keep UPI Apps Updated: First, regularly update your UPI app to ensure you have the latest security features. Additionally, use trusted UPI apps only, and furthermore, enable additional security measures like biometrics or two-factor authentication to enhance your protection.
| Citizen Financial Cyber Fraud Reporting and Management System has been introduced to streamline the reporting of cyber financial frauds.
The Cybercrime Backend Portal, allows citizens to report frauds easily through the 1930 National Helpline, which is operational across all States and Union Territories. |
Ways to Lodge a UPI Complaint
1. Via UPI App
Open your UPI app (e.g., PhonePe, Google Pay) and navigate to the “Help” section to report issues. You can select the transaction in question and file an online UPI fraud complaint directly.
2. Through Your Bank
First, contact your bank’s customer service and provide details such as the UPI transaction ID and the amount. Moreover, banks are obligated to resolve UPI fraud complaints promptly.
3. Using the NPCI Portal
First, visit the NPCI website. Then, file an NPCI fraud complaint, ensuring you include all details of the fraudulent transaction. Additionally, make sure to provide your UPI ID and transaction ID to facilitate quick processing.
4. Dialing the Cybercrime Helpline
Call the national UPI fraud complaint number to report fraudulent transactions. Follow up on the Cybercrime Reporting Portal for further action.
5. Through RBI’s Ombudsman
If the issue remains unresolved, then lodge a UPI transaction fraud complaint on the RBI’s CMS Portal. In this case, provide the transaction details and explain the issue in order to facilitate escalation.
6. In-Person at Bank Branches
First, visit your bank branch and file a written UPI fraud complaint, including the transaction details. Additionally, ensure that you collect an acknowledgement for tracking purposes.
7. Email or Social Media Support
Reach out to your UPI app or bank via their official email or social media channels. In fact, many platforms provide fast responses. Furthermore, they offer clarifications, such as whether there is any limit on UPI transaction policies.
Helpline Number for Reporting UPI Fraud
Below is a table listing the key contact points for reporting UPI frauds, addressing banking issues, and filing complaints through relevant portals:
| Contact Type | Details |
| Primary Contact | NPCI Helpline: 1800 120 1740 |
| Bank-Specific Contacts | Contact your bank directly: Numbers are available on your bank’s website or in your statements. |
| Other Relevant Contacts | RBI Helpline: 14448 |
| National Cyber Crime Reporting Portal: cybercrime.gov.in |
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Frequently Asked Questions
Q. What is UPI Fraud Through Fake Payment Apps?
A. Fake payment apps mimic the interface of trusted UPI platforms to deceive users. Fraudsters trick victims into entering their UPI credentials or authorizing transactions, leading to unauthorized fund transfers.
Q. How Can OTP Scams Compromise Your UPI Security?
A. In OTP scams, fraudsters often pose as bank officials or service providers. Consequently, they convince users to share their OTPs. As a result, this allows unauthorized access to UPI accounts, which, in turn, enables scammers to reset PINs or authorize payments.
Q. What is the Role of QR Codes in UPI Frauds?
A. Fraudsters use fake QR codes to redirect funds to their accounts instead of the intended recipient. Scammers often pose as sellers or service providers and convince victims to scan these codes for refunds or payments.
Q. Can Fake Customer Care Calls Lead to UPI Fraud?
A. Yes, fake customer care calls are a common method of UPI fraud. Scammers impersonate bank representatives or payment service agents, tricking users into sharing UPI PINs, OTPs, or other credentials.
Q. What is SIM Swap Fraud in the Context of UPI?
A. SIM swap fraud occurs when scammers duplicate your SIM card to intercept OTPs and reset UPI PINs. By gaining control of your mobile number, they can access your UPI-linked accounts and perform unauthorized transactions.
Q. How Do Fraudsters Misuse Screen-Sharing Apps for UPI Fraud?
A. Fraudsters convince users to download screen-sharing apps like AnyDesk or TeamViewer. They then remotely monitor activities, capturing UPI credentials and PINs during transactions to carry out fraud.
Q. What Precautions Prevent UPI Fraud During Online Transactions?
A. Before transactions, verify payment requests, and QR codes. Never share UPI details via calls/messages. Use official UPI apps, and update and enable security features.
