Types of UPI frauds and how to stay safe from them

Unified Payments Interface (UPI) has revolutionised digital transactions in India by offering seamless, real-time payments. However, as UPI usage increases, so do fraudulent activities. UPI payment frauds involve scammers exploiting unsuspecting users to steal money though deceptive means. Understanding the types of UPI frauds and knowing how to stay safe can help protect your finances.

6 Types of UPI frauds

Here’s a list of some of the most common UPI frauds and their solutions:

1. Phishing scams

Fraudsters send fake links through SMS, emails, or social media, which trick users into entering their UPI transaction ID, UPI PIN, OTP, and card details on fake websites.

How to stay safe:
 

• Never click on suspicious links or enter payment details on unknown websites.
• Always check the website URL before proceeding with any transactions.

2. Fake customer support calls

Scammers pretend to be bank representatives or payment app executives. They ask for sensitive information such as UPI ID, OTP, and card details or PIN, giving false assurances that they will “resolve issues” or “verify accounts.”

How to stay safe:
 

• You may have a question like “Is it safe to share UPI ID?” You can share your UPI ID, but never share your UPI PIN, OTP, card details or transaction details.
• Banks and payment apps never ask for confidential details over calls.

3. Unauthorised payment requests (Collect request scams)

Scammers send a request for payment with the disguise of a refund or cashback. Money gets deducted if the user accidentally accepts.

How to stay safe:
 

• Always approve collect requests only when there is an ongoing transaction.
• Crosscheck the receiver details before approval of payments.
• Spam/block the collect requests which looks suspicious.

4. Screen-sharing and remote access frauds

Fraudsters make users download screen-sharing applications and gain access to their mobile screens and financial applications.

How to stay safe:
 

• Don’t download apps from suspicious websites without verification.
• Don’t give anyone your OTP or even screen access for anything.

5. Fake UPI handles and QR code frauds

Fraudsters create fake UPI IDs that look similar to the actual ones or send fake QR codes or links that authenticate money transactions when scanned.

How to stay safe:
 

• Always check UPI IDs before sending money.
• Do not scan QR codes or click on payment links from unknown sources.

6. SIM swap fraud

Scammers get a duplicate SIM card with your number and gain access to the UPI-linked bank accounts.

How to stay safe:
 

• If your SIM has stopped working suddenly, report it to your service provider immediately.
• Activate multi-factor authentication for enhanced security.

Five smart tips to avoid UPI fraud

As UPI frauds are on the rise due to a lack of awareness, you must follow the tips given below to avoid fraudulent activities.

• Use your UPI PIN only for payments; it is not required when receiving money.
• Always verify the recipient’s name before proceeding with a payment via your UPI ID. Avoid transactions without confirmation.
• Enter your UPI PIN only on the official app's UPI PIN page and never share it with anyone.
• Scan QR codes solely for payments; do not use them to receive money.
• Avoid installing screen-sharing or SMS-forwarding apps if prompted by unknown sources, especially without understanding their purpose.

How to lodge UPI fraud complaints

If you get cheated, place a complaint about UPI frauds immediately:

• Report through UPI app: Use the complaint window under the ‘Report’ section on the app to raise an alarm for suspicious transactions.

• Call your bank: Through your bank’s customer care, stop further transactions.

• Call 1930: File instant fraud reporting via the cyber-crime helpline.

IDFC FIRST Bank: Safe and secure UPI transactions

With IDFC FIRST Bank, your UPI transactions are fast, secure, and hassle-free. The Bank has advanced fraud detection mechanisms and multi-layer authentication in place to safeguard users from UPI frauds.

Why IDFC FIRST Bank for UPI transactions?

Choosing a reputed bank like IDFC FIRST Bank for UPI transactions offers several advantages:

• Real-time fraud monitoring to detect suspicious activities.
• Secure UPI ID verification for every transaction.
• 24/7 fraud assistance to report and resolve UPI fraud complaints.
• Seamless integration with savings accounts for safe digital transactions.

Moreover, IDFC FIRST Bank’s savings account provides:

• Competitive interest on savings account funds.
• Monthly interest payout for enhanced monetary growth.
• Easy video-based KYC procedure to open an account.
• Zero fees on all common savings account services.
• Unlimited ATM withdrawals.

Conclusion

While UPI has made digital payments easier than ever, vigilance is the key to avoiding fraud. Be aware of various types of UPI frauds and practice safe banking with IDFC FIRST Bank to enjoy easy and secure digital transactions.

In case of any grievance with the bank, you may raise your concern as per the customer redressal policy of our bank. Visit https://www.idfcfirstbank.com/support/grievance-redressal for more information.