Digital payments in India have seen record-breaking growth over the past few years. UPI is not just a payment system, but has become a part of everyday life for the general public. While UPI has provided convenience, it has also become a new weapon for cyber fraudsters. In this report, we will explore:
- What is a UPI scam?
- How is it carried out?
- The most common methods used by fraudsters.
- Experiences from real victims.
- Expert advice.
- And most importantly preventive measures.
What is UPI Scam?
UPI scams are cyber frauds in which fraudsters steal money from people using UPI apps (Google Pay, PhonePe, Paytm, etc.). This fraud is perpetrated using both technical and psychological methods.
The dangerous aspect of UPI scams is that money can disappear from an account in just 5–10 seconds, and most people don’t even understand where the mistake occurred.
How Does UPI Scam Happen to You?
According to a report by India’s Cyber Cell, UPI scams are expected to increase by 38% in 2024–25. Let’s see how:
1. Pretend to Receive Payment, But Money is Deducted
The fraudsters say:
“We’re sending you money, just click on the link or scan the QR.”
As soon as the person scans the QR code instead of receiving the money, the money is deducted from their bank.
2. Customer Care Scam (Fastest Growing Method)
Searching for “Customer Care Number” on Google will yield fake numbers.
The fraudsters, posing as company support, say: “An OTP must have arrived, please let me know.”
Your UPI is hacked as soon as you provide the OTP.
3. UPI Lite / Auto-Pay Activation Scam
As soon as you open the fake link, “UPI Auto Pay Activated” appears on your mobile, and the fraudsters automatically withdraw money every day/hour.
4. Screen Sharing App Fraud
Scammers trick you into downloading apps like AnyDesk or QuickSupport.
They say: “We’ll guide you step by step.”
As soon as you install the app, the scammer can access your entire phone and monitor UPI operations.
5. Fake Cashback / Reward Scam
“₹500 cashback received, claim it” Such messages are circulating on WhatsApp/Twitter.
As soon as you open the link, you’re asked to enter your UPI PIN.
This is where the scam takes hold.
6. Job/Loan/Shopping Fraud Links
- Loan approval
- Free credit
- Cashback
- Free mobile offer
- Online part time job
These have a Pay Now or Verify Now button, The entire UPI system is hijacked upon clicking.
Story of a UPI Scam Victim
Tina Sharma, a resident of Rohini, Delhi, saw an advertisement online for a used bike.
The seller claimed to be in the army.
He asked tina to send an “Advance Token” of ₹2,000. As soon as tina opened the link, ₹40,000 disappeared from his account within 5 seconds.
Tina says: “I thought I was getting paid, but both times I got a deduction. That’s when I realized it was a scam.”
This isn’t just one case, thousands of such complaints are filed every month.
Why Are UPI Scams On the Rise? (Expert Analysis)
According to cybersecurity experts:
1. People’s blind trust in UPI People think UPI is 100% secure. Yes, the system is secure, but users aren’t.
2. Lack of awareness: People still believe scanning a QR code means “getting money,” which is incorrect.
3. A flood of fake websites and links: The number of fraudulent links on WhatsApp, Telegram, and Instagram ads has increased rapidly.
4. An explosion of customer care scams. It’s easy for fraudsters to post fake numbers on Google.
7 Ways to Identify UPI Scam
- No one sends a QR code to send money.
- Links that say “pay,” “verify,” “bank,” or “lite” = 100% scam.
- Someone says, “Tell me/Forward the OTP” – it’s a scam.
- Never get customer care numbers from Google.
- Cashback links on WhatsApp are always fake.
- UPI PINs are only required when sending money.
- PINs are never required to receive money.
Surefire Ways to Avoid UPI Scams
- Never share your UPI PIN with anyone.
- QR codes are only for making payments, not for receiving them.
- Never install screen sharing apps.
- Always get customer care numbers from the official website.
- Always keep App Lock, Phone Lock, and SIM Lock on UPI apps.
- Always turn off UPI Auto Pay.
- Keep SMS alerts on.
What to do immediately if you get scammed by UPI? (Emergency Steps)
- Immediately call the 1930 Cyber Fraud Helpline.
- File a complaint on cybercrime.gov.in.
- Ask the bank to put the account on “hold.”
- Immediately report the matter to UPI App’s customer support.
- Save all screenshots, chats, and call records.
Taking action quickly increases the chances of getting your money back.
Conclusion
UPI is a convenience, not a threat; but carelessness is the biggest risk. UPI has brought India to the forefront of the digital world. But just as every technology brings risks, a new face of fraud has emerged with UPI.
The greatest strength of a responsible user is caution, awareness, and timely action.
FAQ’s of UPI Scam
Q1. Can Money be Refunded Using UPI?
Yes, if you immediately call 1930 and the transaction is still processing.
Q2. What if the QR is Scanned?
If the QR is fraudulent, money may be deducted from your account.
Q3. Does Fraud Occur Only through the UPI PIN?
Most frauds occur due to misuse of the PIN/OTP.
Q4. Is UPI 100% secure?
UPI is secure, but misuse makes it unsafe.
Q5. On Which Website Should I Complain About UPI Scam?
In case of UPI scam, file a complaint on the official website of Government of India cybercrime.gov.in.