Introduction

 

Unified Payments Interface (UPI) has transformed digital payments in India, enabling fast, cashless transfers for everyone—from street vendors to large enterprises. With convenience, however, come risks. UPI fraud is rising as cybercriminals continuously devise new tricks to exploit unsuspecting users.

 

This article explains how UPI fraud happens, outlines the most common scam techniques, and, most importantly, provides practical steps you can take to protect your money. If you use UPI, this guide is essential.

 

What Is UPI Fraud?

 

UPI fraud occurs when a cybercriminal tricks a user into authorizing a transaction, sharing confidential information, or installing malicious apps, leading to unauthorized withdrawals from a bank account.

 

Important:

 

• UPI fraud does not require hackers to breach bank systems.
• Most frauds arise from social engineering and user mistakes.

 

Common Types of UPI Fraud in India

 

1) Fake “Receive Money” Requests

This is the most common UPI scam. How it works:

• The fraudster claims to be sending money and asks you to “approve” or “enter PIN” to receive it.
• In reality, you are authorizing a payment, not receiving one.

Reality check: You never need to enter a UPI PIN to receive money.

 

2) Customer Care Scam

Fraudsters create fake customer support numbers found in Google search results, WhatsApp, or social media pages. They ask for:

• UPI PIN
• OTP
• Screen-sharing access

Once obtained, they drain funds quickly.

 

3) QR Code Scam

Scammers send a QR code claiming refunds, cashback, prize money, or payment verification. When scanned, it initiates a debit transaction instead of a credit.

 

4) APK File & Fake App Scam

Fraudsters send links that claim to “update your UPI app,” “install bank security apps,” or “KYC pending – urgent.” These apps can:

• Record keystrokes
• Read SMS
• Capture OTPs

 

5) SIM Swap Fraud

Criminals duplicate your SIM card using stolen personal data. Once the SIM is cloned, they receive OTPs, reset UPI credentials, and may drain bank accounts.

Why UPI Frauds Are Increasing

• Rapid digital adoption
• Low cyber awareness
• High trust in phone calls and messages
• Fear-based tactics (e.g., “Your account will be blocked”)
• Lack of user verification

 

Cybercriminals exploit urgency and fear, not technical loopholes.

 

How to Protect Yourself from UPI Fraud (Must Follow)

 

1) Never Share UPI PIN or OTP: Bank officials never ask for your PIN or OTP. Customer care never needs your PIN.

2) Verify Before Clicking Any Link: Avoid unknown SMS or WhatsApp links. Do not install apps from outside the official Play Store. Do not click shortened URLs.

3) Read Before You Approve: Before entering your UPI PIN, verify:

• Is this a “Pay” or a “Collect” request?
• Is the amount correct?
• Do you recognize the receiver’s name?

4) Enable Transaction Alerts: Turn on SMS and in-app notifications. Review statements regularly.

5) Avoid Screen Sharing Apps: Do not install or use AnyDesk, TeamViewer, or QuickSupport. They grant remote access to your device.

6) Update Your Phone & Apps Regularly: Keep your UPI apps updated and apply phone security updates promptly.

 

What to Do If You Become a Victim of UPI Fraud

 

Time is critical—act quickly.

1. Inform Your Bank: Call the official bank helpline and block UPI access immediately.
2. Call the NPCI Helpline: Dial 1930 for the India Cyber Crime Helpline.
3. Register a Complaint Online: Visit cybercrime.gov.in to file a report.
4. Preserve Evidence: Save screenshots, note down relevant phone numbers, and collect transaction IDs.

 

Cyber Safety Checklist for UPI Users (Quick Summary)

• Never enter a PIN to receive money.
• Never scan QR codes for refunds.
• Do not trust urgency-based messages.
• Use official apps only.
• Report fraud immediately if it happens.

 

Why Cyber Awareness Matters Today

 

UPI fraud is less about hacking into systems and more about social engineering. Awareness is your strongest defense. At CyberKnights, we aim to educate users, prevent financial loss, promote cyber hygiene, and strengthen digital trust.

 

Conclusion

 

UPI is safe when used correctly. By following basic cyber safety practices and staying informed about fraud techniques, you can enjoy digital payments with greater confidence. Share this article with family, friends, and colleagues—especially senior citizens and first-time UPI users.