UPI Fraud: Types and Steps to Not Become a Victim

A random call claiming you have won a prize. A payment request from someone pretending to be a courier company. A QR code sent ‘just to receive money’ but actually designed to drain your account. These are not stories from the news — they are real incidents happening to people every single day. And they all fall under one growing threat in India: UPI fraud.

Like every coin with two sides, the convenience of digital payments has also brought its share of risks. In this blog, we will help you understand the multiple UPI frauds in India, how to identify them in time, and the steps you can take to avoid being the next victim.

Common types of UPI frauds

1. Fake collect requests: Scammers send UPI requests posing as a refund or prize. Authorising such a request sends money to them instead of receiving it.
2. Phishing links: Messages or emails include links to spoofed payment portals. Entering UPI login or PIN details on these fake sites leads to credential theft.
3. QR code scams: Scanning a QR code doesn’t always mean you’re receiving money. Fraudulent codes can initiate payment transfers from your account.
4. Screen-sharing frauds: Fraudsters posing as bank representatives or customer support ask you to install remote access apps. Once connected, they can view and capture confidential details, such as UPI pins.
5. Lookalike or fake UPI ID: Some scammers create handles that closely resemble real ones. A single letter or digit change can send your money to a fake account.
6. Fake UPI apps: Downloading unofficial payment apps from unverified sources can expose your details to scammers.
7. SIM swap fraud: Scammers get a duplicate SIM card with your number and gain access to the UPI-linked bank accounts.

Also Read: 7 Common Types of Financial Fraud to Watch Out for

Ways to protect yourself against UPI fraud in India

1. Keep your UPI PIN and OTP strictly private: Never share it over calls, messages, or emails, even if the request appears to come from the bank. No bank or legitimate official will ever ask for these details.
2. Set a daily transaction limit: Placing a cap on your daily UPI transactions can help limit potential losses if a scam does occur. This feature is available in most UPI apps and is an effective safety measure.
3. Avoid scanning QR codes from unfamiliar sources: Fraudulent QR codes may reverse the intended direction of the transaction. Only scan codes from verified merchants, service providers, or people you may know.
4. Use only trusted, RBI- or NPCI-regulated apps: Stick to official UPI apps such as Paytm, PhonePe, GooglePay, BHIM UPI, or your bank’s official app. Avoid downloading payment apps from unverified websites or third-party app stores.
5. Review your transaction history regularly: Monitor your account for unfamiliar deductions. Never click on suspicious links, such as claiming a prize or fine-related payments.

Also Read: 10 Ways to Protect Yourself from Bank Fraud

Steps to take if you are a victim

1. Inform your bank immediately: The first step is to contact your bank or the UPI service provider as soon as you notice an unauthorised transaction. Request them to freeze further payments from your account and block any suspicious activity.
2. Call the National Cybercrime Helpine: This government-operated helpline is specifically for reporting urgent online and financial fraud cases. Call 1930 to register the said UPI scam.
3. File a complaint on the Cyber Crime Portal: Visit the official Cyber Crime portal and submit a detailed complaint. Include the transaction ID, date and time, the UPI ID involved, screenshots of any messages or payment confirmations, and a description of the incident.
4. Preserve all records and evidence: Do not delete any messages, emails, payment confirmations, or screenshots related to the fraud. These are vital for both bank investigations and police reports.

Every scam begins with a small lapse, such as a click on a suspicious link, a quick tap to approve a request, or a moment of trust in an unfamiliar call. UPI fraud thrives on these split-second decisions, and the only way to beat it is by staying alert at every stage of the transaction.

The immense convenience of UPIs should not come at the cost of one’s digital security. A few simple habits can significantly reduce the risk of falling for a scam, such as double-checking payment requests, verifying UPI IDs, and refusing to share your PIN or OTP. So, not every prize money is a win; it could be the start of a loss.

Frequently asked questions

1. What is UPI fraud?

   UPI fraud refers to fraudulent attempts to steal money or credentials via collect requests, phishing links, fake apps, QR code manipulation, impersonation, and remote access methods.

2. Are lookalike UPI IDs safe?

   Scammers use lookalike UPI IDs to imitate genuine/original handles. Send money only after verifying the recipient's details carefully.

3. How to get money back from UPI frauds?

   Report to your bank immediately, contact the National Cybercrime helpline (1930), and lodge a complaint on the Cyber Crime portal. Also, keep the documents and evidence ready.

4. Is it safe to share UPI ID?

   Sharing your UPI ID is safe. The risk comes only when you share your UPI PIN or OTP, which should remain private.

5. What is a SIM swap fraud in UPI?

   SIM swap fraud happens when scammers get a duplicate SIM card for your number and use it to access your UPI-linked bank accounts.