- UPI transactions hit 16.99 billion in January 2025, but frauds are also rising.
- Banking fraud cases surged by nearly 300% in FY 2023-24, reaching 36,075 cases.
- Common UPI scams include phishing, fake UPI apps, QR code frauds, and impersonation.
- Essential safety tips: Verify UPI IDs, avoid unknown payment links, and never share your UPI PIN.
Unified Payments Interface (UPI) has become a cornerstone of India’s digital economy, enabling seamless and instant money transfers. With its widespread adoption, UPI transactions hit a record 16.99 billion in January 2025, amounting to Rs 23.48 trillion. However, this rapid growth has also led to an alarming rise in fraudulent activities. According to RBI data, banking fraud cases surged by nearly 300% in FY 2023-24, reaching 36,075 cases.
To safeguard your money, it’s essential to recognize and understand the different types of UPI frauds. Here’s a deep dive into common scams and how you can protect yourself.
Common Types of UPI Frauds & How They Work
1. Phishing Scams
Phishing is one of the most common UPI frauds where fraudsters impersonate bank representatives through fake emails, SMS, or phone calls. They trick users into revealing their UPI PIN, OTP, or login credentials, leading to unauthorized transactions.
How to Avoid: Never share your UPI PIN or OTP with anyone. Banks or payment apps will never ask for such details over calls or messages.
2. Fake UPI Apps
Scammers develop fraudulent UPI apps that mimic legitimate platforms like Paytm and other UPI apps. These fake apps steal user credentials and access linked bank accounts.
How to Avoid: Only download UPI apps from verified sources like Google Play Store or Apple App Store. Always check user reviews before installation.
3. QR Code Scams
In this scam, fraudsters send QR codes to victims, claiming that scanning the code will credit money into their accounts. However, scanning actually initiates a payment request that deducts money from the user’s bank account.
How to Avoid: Remember that QR codes are only for making payments, not receiving them. Never scan a QR code from an unverified source.
4. Request Money Scams
Scammers send deceptive payment requests via UPI apps, disguising them as refunds, salary deposits, or rewards. If the victim enters their UPI PIN, they unknowingly authorize a payment.
How to Avoid: Always check if the request is legitimate before approving any payment. UPI transactions do not require a PIN to receive money.
5. Reward & Lottery Scams
Victims receive calls, messages, or emails claiming they have won a lottery or reward. Fraudsters then ask them to share their UPI details to claim the prize, leading to unauthorized transactions.
How to Avoid: Be cautious of too-good-to-be-true offers. Legitimate organizations do not ask for payments to claim prizes.
6. Fake Payment Screenshots
Fraudsters generate fake UPI transaction receipts and send them to sellers or service providers as proof of payment. Many people fall for this scam and hand over goods or services without verifying the actual payment.
How to Avoid: Always verify payments through your UPI app or bank statement before handing over products or services.
7. UPI ID Fraud
Scammers create fake UPI IDs resembling genuine ones (e.g., @ptys instead of @ptyes) and trick users into sending money to the wrong account.
How to Avoid: Double-check the recipient’s UPI ID before making a transaction. Save frequently used UPI IDs to prevent errors.
8. Impersonating Genuine Sellers
Scammers pose as online sellers and request advance payments via UPI. Once the payment is made, they disappear without delivering the product.
How to Avoid: Only shop from verified sellers and platforms. Avoid making full payments upfront to unverified sellers.
Fraudsters impersonate customer care representatives and convince users to install screen mirroring apps like AnyDesk or TeamViewer. These apps give scammers access to the user’s phone, allowing them to conduct unauthorized transactions.
How to Avoid: Never install unknown apps upon someone’s request. Banks and UPI platforms never ask users to install third-party apps for issue resolution.
How to Stay Safe from UPI Frauds
- Enable UPI App Lock: Use fingerprint or PIN lock on your UPI app for additional security.
- Verify Before Transacting: Double-check UPI IDs and seller credentials before making payments.
- Avoid Clicking on Unknown Links: Never click on unsolicited payment links received via SMS, email, or WhatsApp.
- Do Not Share Your UPI PIN: Banks, UPI apps, or government agencies will never ask for your UPI PIN.
- Report Fraud Immediately: If you suspect a fraudulent transaction, report it immediately to your bank and the cybercrime helpline (1930).
While UPI has transformed the way Indians handle digital transactions, the rise in UPI-related frauds highlights the need for vigilance. Understanding different fraud techniques and implementing security measures can help protect you from financial losses. Always verify before making payments, never share sensitive details, and report suspicious activity to the authorities. Stay informed, stay secure!
