
UPI has been the most popular mode of transaction for the last few years. The convenience and real-time banking facility provided by UPI has changed the way people do banking and manage their day-to-day transactions.
With the rise of digital banking, fraudsters have also found their own ways and psychological tactics to trick UPI users. They snatch banking information from individuals using psychological tactics and use it to commit UPI fraud.
By raising UPI fraud awareness and taking some preventive measures against fraud, you can protect yourself and guard your personal information from these frauds. This blog will educate you against UPI fraud and how to safeguard yourself against it.
What is UPI (Unified Payments Interface)?
Unified Payments Interface (UPI) is a system that supports multiple bank accounts in a single mobile app. It offers several banking features, seamless transactions & merchant payments. While UPI transactions are designed to be secure, user awareness and caution are essential to avoid fraud.
Advantages of using UPI for Payment!
Easy peer-to-peer transactions and individual-to-merchant transactions
Real-time Transactions
Supports multiple bank accounts into a single account
What is UPI Fraud?
UPI frauds are malicious activities conducted by the frauds via sending fake UPI transfer requests or fake payments to your device. Fraudsters use tactics like phishing and creating fake UPI IDs to scam users. Awareness of these frauds by taking several cautious measures can help you save yourself from the danger of fraud and losing your hard-earned money.
Common Types of UPI Frauds
Fake UPI QR codes
Fraudsters send malicious links and fake QR codes to the inbox of users. This tactic is used to steal the sensitive banking information of a victim and sometimes OTP.
Legitimate sellers
This is the most common scam: fraudsters aim to trick you and get an OTP from you. They mask themselves as a legitimate seller by using the names of trusted individuals from genuine banks and lending institutions. They try to win the trust of the user by their appealing words and convince you to send them OTP.
Fake payment screenshots
Fraudsters create fake payment screenshots. They send such screenshots to users and make them believe that they have actually received a good amount of money. Later, they demand you to send their money back to the account information they provided.
Phishing
Phishing is a scam happening through calls, emails, and text messages. Fraudsters send you fake emails with malicious links. Once they visit the link and enter their sensitive banking information, these fraudsters get access to that information. They misuse your personal information and boost their fraudulent activities.
Fraud Sellers
Fraud sellers are the ones who use online marketplaces to carry out fraudulent activities. They run ads where you can find products at the cheapest rate, and usually, if you notice, they won’t offer you a COD option. They ask you to transfer money via UPI payment, and you never receive the product in return.
Fraud Through Screen Monitoring Apps
In this tactic, fraudsters reach out to the victim via a call or a text message and impersonate them as a trusted banking individual. They use a concern of solving the query raised. Further, it asks for access to the user's screen via Anydesk or similar software. These apps allow them to easily access the information you are entering on your device.
Malware
Malware is one of the most common types of fraud. When you download the file from a fake mail attachment or WhatsApp message, it can copy the data from your device. A recent fraud has been disguised, where you get a wedding invitation in Whatapp. If you pay close attention, instead of .jpg, .jpeg or .pdf, the extension of the file would be .apk. When you click to see the invitation, instead of an image or invitation, the malware will be downloaded onto your phone. This grants permission to the fraudsters to have access to your sensitive data, stored in your device.
Money Mule
Money mule is when fraudsters use your personal information and create fake banking accounts with it. Further, they use this account to receive and transfer money snatched with fraudulent activities.
SIM Cloning
In this scam, fraudsters clone your sim, it can be used to receive the OTP without your involvement. It can even be used to change your UPI PIN.
Misleading UPI Handles
Fraudsters use random UPI addresses to snatch your money from you. These scams occur online via social media, online marketplaces, and WhatsApp messages.
Collect Request
The fraudsters use a collection request trick, where they get the money out of you via UPI, and they offer you a refund tactic or debit reversal to win your trust. Once you click on the collection request, you will be asked to enter the PIN and immediately, the money will be debited from your bank account.
What should you do if you become a victim of UPI Fraud?
Document the Proofs: Whatever you have against the fraud, keep documenting it. Take screenshots wherever it is necessary. Write down the portal address. Keep a record of the transaction details.
Inform the Corresponding Bank: Once you become enlightened that you have been scammed by UPI frauds, the first thing to do is to contact your respective bank and inform them about the incident. Consider securing your accounts and freezing it until the issue gets resolved.
Lodge Fraud Complaint: File a police complaint on an immediate basis. The sooner you report it, the sooner you can get the solution.
Report The Incident on Cyber Crime Portal: Report the crime on the National Cyber Crime Reporting Port. Submit the proofs you have documented earlier.
Change PINs: Consider changing your UPI PINs time and by for security. Do not share your UPI PINs, even in the worst-case scenarios. Always keep an eye on unauthorized transactions.
How do we remain safe from these UPI Frauds?
Trust your Gut!
Beware of random calls you receive that seem suspicious. If you receive a call from a number that is not from your country, you should simply avoid it. In case, you have picked up any strange call and suspect the fraud, you should immediately drop that call.
Pay Attention to SPAM Warnings
Your UPI app sends warnings when it detects unusual activity or even when you are simply attempting to pay using a new device from a new location. Pay attention to these spam warnings and take necessary actions if it is required.
Beware of Malicious Apps
You should not download any app via random app websites. Only use authorized app stores to download genuine apps and services. Even when you download any app from the play store, check for its legitimacy before proceeding with it. Frauds clone genuine banking apps and submit them to the play Store.
Follow Security Practices
Never share your OTP with strangers under any circumstances. You can also protect your UPI with a biometric PIN. Additionally, you can install an anti-virus in your devices to constantly be safe against malware.
Never Open Emails without checking authenticity
Never open a mail if it has a suspicious subject. Do not click on any link you receive randomly on your device via mail. It is the easiest way to give others access to your private data by downloading malware.
Avoid Using Open Wi-Fi
Do not just use any wifi because it’s free. Especially do not proceed with any bank-related activities or process UPI transactions while on a random Wi-Fi. Hackers often use this source to access your private data.
Keep Track of all Banking messages
Always keep an eye on your bank accounts. Sit for a while and go through the transactions. If you find any suspicious behavior, consider reporting it to the respective bank authorities right away.
Be Safe! We do not ask for OTPs over the call!
We all know that precaution is better than the cure. Once you have lost your money to these UPI fraudsters, you might experience certain financial and mental stress. It is always better to stay educated and aware of these frauds.
Being an RBI-approved NBFC, at Chinmay Finlease Limited, we do not ask for money, OTPs, or personal information, from our users over the call, message, or email. Chinmay Loan App follows an authoritative and encrypted process, where we have dedicated customer support representatives to help you with the process.
Quick Blog Summary
Here’s a quick summary to save yourself from potential frauds:
Don’t share your OTP
Do not download apps you don’t trust
Double check the credibility of the UPI you are making payment
Do not receive suspicious calls
Install Anti-virus for additional device security
Avoid clicking on suspicious URLs received via SMS or email
Stay Safe, and let’s meet in another blog!
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