Think Twice Before You Pay: Top UPI Scams Targeting Your Money and Data

UPI Fraud Awareness: 5 Common Scams and How to Stay Safe in 2024

By: Javid Amin
In today’s digital world, mobile payment platforms like UPI (Unified Payments Interface) have transformed how we handle financial transactions. The ease of sending and receiving payments through UPI apps has made it a preferred choice for millions. However, as more people rely on mobile payments, cybercriminals are constantly developing new ways to exploit this convenience. Scammers are now leveraging sophisticated technology and social engineering tactics to carry out UPI fraud, putting users’ hard-earned money at risk. Here, we’ll explore the types of UPI fraud, the methods used by scammers, and actionable steps to protect yourself and your financial assets.

What is UPI Fraud?

UPI fraud involves any deceitful practice aimed at tricking individuals into making unauthorized transactions or giving away sensitive information related to their UPI accounts. Scammers use various tactics to create realistic scenarios that manipulate victims into sharing UPI PINs, passwords, or even allowing remote access to their devices. Despite security features and regulations in place, cybercriminals find loopholes, making awareness and caution crucial for all UPI users.

5 Common Types of UPI Fraud

UPI fraud schemes can take many forms, from fake payment confirmations to using screen monitoring apps. Understanding these common scams can help you identify red flags and avoid falling victim.

1. Fake Payment Screenshots: The Illusion of a Successful Transaction

One of the simplest yet highly effective scams involves the creation of fake payment screenshots. In these cases, scammers generate realistic images that appear to show successful payments. Here’s how it typically works:

• The scammer pretends to buy something from the victim, shows them a fake payment screenshot, and claims the money has been transferred.
• Believing they’ve been paid, the victim hands over goods or sends a refund, only to later realize that no money was actually transferred.
• By the time the victim contacts their bank or UPI service, the scammer has already moved on.

How to Identify Fake Payment Screenshots:

• Always verify transactions by checking your own UPI transaction history directly in the app.
• Avoid trusting payment screenshots and instead confirm payments in real time through notifications or the app itself.

2. Impersonation Scams: AI Voice Cloning and Deepfake Technology

Advancements in technology have enabled cybercriminals to impersonate individuals convincingly. Using AI voice cloning and deepfake technology, scammers can mimic the voices or appearances of people you know, such as friends or family members.

• The scammer calls or sends a voice message pretending to be a relative or friend, claiming to be in an emergency and asking for immediate financial help.
• The impersonation is so convincing that victims often comply without question, sending money to an unknown account.

How to Spot Impersonation Scams:

• If you receive an urgent request from someone you know, verify their identity by calling them directly on their known number.
• Be cautious of messages or calls that come from unknown or unfamiliar numbers.

3. Fake UPI QR Codes: The Trap in a QR Code

In another clever scam, cybercriminals use fake UPI QR codes to mislead unsuspecting users. Here’s how it works:

• The scammer generates a fraudulent QR code that, when scanned, takes the user to a fake payment page.
• The fake page resembles a legitimate UPI payment portal but is designed to capture sensitive information such as UPI IDs and passwords.
• Alternatively, these QR codes may prompt unauthorized payments or even request personal banking details.

How to Avoid Fake QR Code Scams:

• Only scan QR codes from verified and trusted sources.
• Double-check that the URL or payment portal where you’re directed is legitimate.
• UPI platforms do not require you to scan a QR code to receive money—scanning is typically only necessary to make a payment.

4. Screen Monitoring Apps: A Window into Your Device

Screen monitoring apps are another tactic used by scammers to gain unauthorized access to users’ devices. These apps can capture everything on the screen, including passwords, UPI PINs, and other sensitive data.

• Victims are tricked into installing screen monitoring apps, sometimes under the guise of customer support or a security check.
• Once installed, the app records the user’s screen activity, allowing scammers to capture PINs, passwords, and other sensitive data as they are entered.
• With this information, scammers can easily access and control the user’s bank accounts or UPI apps.

How to Protect Against Screen Monitoring Apps:

• Avoid downloading apps from unverified sources or unknown links.
• Review app permissions carefully and do not allow access to apps that seem suspicious.
• Use reputable security software that can detect and block such spyware.

5. Phishing Links in Messages: A Click Away from Trouble

Phishing scams have evolved, and now scammers frequently use links in messages sent through SMS, email, or social media to target UPI users. These links often appear to come from legitimate sources, such as banks or payment platforms, and contain messages designed to create a sense of urgency.

• Upon clicking the link, users are redirected to a fake page that requests UPI credentials, PINs, or OTPs.
• Some links may also download malware onto the device, allowing scammers further access to sensitive information.
• Clicking on these links can compromise personal and financial data almost instantly.

How to Avoid Phishing Links:

• Avoid clicking on any payment links sent via SMS, email, or messaging apps, especially if they’re unsolicited.
• Always log into UPI apps or banking services directly, not through links.
• Look out for typos or grammatical errors in messages, as these are often indicators of phishing attempts.

Tips to Protect Yourself from UPI Fraud

1. Never Share Your UPI PIN: Your UPI PIN is like the PIN of an ATM card. Never share it with anyone, even if they claim to be from customer support or your bank.
2. Verify Before Payment: Before sending or accepting any payment, double-check that you’re dealing with a trusted source. Scammers often send fake payment requests disguised as legitimate transactions.
3. Check Your Transaction History Regularly: Regularly reviewing your UPI transaction history can help you spot any suspicious activity early.
4. Keep Your UPI App Updated: App updates often contain security patches. Make sure to keep your UPI app updated to the latest version to avoid vulnerabilities.
5. Enable Two-Factor Authentication: If your UPI or banking app supports it, use two-factor authentication (2FA) for an extra layer of security.
6. Use Strong Passwords: Ensure that your device and UPI app are protected with strong, unique passwords to prevent unauthorized access.
7. Don’t Save Sensitive Data on Your Device: Avoid storing UPI PINs, passwords, or other sensitive information on your phone.
8. Be Skeptical of Unknown Payment Links: Never click on unknown payment links, and avoid completing transactions prompted by unverified sources.
9. Limit App Permissions: Only grant necessary permissions to apps. Avoid giving sensitive permissions to unknown or untrusted apps.
10. Report Fraud Immediately: If you suspect fraud or unauthorized access, report it to your bank or UPI service provider right away to mitigate losses.

The Role of Awareness in Combating UPI Fraud

As mobile payment platforms like UPI become more integrated into our daily lives, understanding the risks and recognizing fraud is essential. Cybercriminals will continue to adapt their methods, but you can minimize risks by staying informed and exercising caution.

Final Thoughts: Staying Ahead of UPI Scammers

Cybersecurity is a shared responsibility. As users, we must stay vigilant, continuously educate ourselves, and encourage our friends and family to be mindful of UPI fraud tactics. Whether it’s by recognizing fake payment requests, avoiding suspicious links, or reporting fraud quickly, taking proactive steps can save time, stress, and money.

Staying safe on UPI isn’t just about protecting your money—it’s about safeguarding your digital identity in a world where scammers are constantly seeking new targets. With the right awareness and security practices, you can continue enjoying the convenience of UPI payments without falling victim to fraud.