Our lives have become considerably simpler as a result of UPI, but there are drawbacks as well. With more UPI payments being made, there is a higher risk of UPI fraud as con artists come up with creative new ways to trick users. In the first two quarters of 2022, about 1.4 lakh UPI frauds were reported. Thought not! By exercising caution when making online payments, you can protect yourself from con artists.
What is UPI ?
The fundamental definition of UPI should come first. A user can transfer money from one bank account to another immediately, safely, and conveniently via the UPI (Unified Payments Interface) digital payment system, which was launched by NPCI in 2016. When sending or receiving money, paying bills, or even shopping online, UPI id, a virtual payment address connected to a bank account, is used. through different UPI-compatible applications, including Google Pay, PhonePe, Paytm, or the UPI app of the user's bank. Every UPI transaction must be verified and authenticated using the UPI PIN that the user has specified.
What are UPI Frauds ?
When con artists hack into your account and take your money or private information, this is known as UPI fraud. Phishing, the most prevalent form of UPI fraud, involves sending phony emails to potential victims in order to obtain their private data. Calls asking for your UPI PIN and other information are another possible method. Malware, money mules, SIM cloning, and vishing are a few other examples of internet fraud.
Common UPI Fraud
Understanding how fraudsters abuse the payment system is necessary before you can protect your account. The typical UPI scam kinds that you should be aware of are as follows:
The most frequent form of UPI fraud is phishing, in which users are sent unauthorized websites that resemble the authentic URLs of banks or businesses. Unassuming clients open the link, giving criminals access to their money.
Screen monitoring from a distance
The request to download third-party software for verification or complaint resolution comes from con artists posing as bank staff. Once they have downloaded these untrusted apps, they have remote access to your phone and are free to utilise any data you have saved there as they see fit.
Dishonest UPI handles
Social media pages that appear like they belong to legitimate businesses are faked by scammers. Numerous unsuspecting individuals fall for this con and provide these sites with their personal information as well as their UPI handles.
Calls from fraudsters posing as bank personnel or government officials may occur. In order to convince you to give them your PIN or OTP, they concoct a network of lies. They start stealing your money as soon as they have access to your bank accounts.
A sophisticated fraud scheme known as a "money mule" involves tricking victims into allowing thieves to use their accounts to launder money that has been taken or obtained illegally. Victims are contacted, and they are persuaded to accept money into their account in exchange for tempting commissions and to transfer it to other accounts at their request.Innocent people become targets of police investigations when the scam is reported.
The sophisticated fraud technique known as SIM cloning is very recent. In order to hack your phone, scammers clone your SIM card here. To reset your UPI PIN and use it maliciously, they next get your bank account details and ID proof.
UPI fraud prevention tips
Following these security precautions will help you to protect from UPI Scams now that you are aware of how con artists might con you.
1. Preventing UPI PIN fraud
Never share your UPI PIN to anyone pretending to be a representative of a bank or governmental agency. Never will one of these organisations request your PIN. Do not fall into the trap set by the scammers, who make you afraid of losing access to your account or missing some crucial updates.
2. Fair payment terms
Once you are certain of the requestor's identity, only proceed with the payment request. To notify you of phony requests, use spam filters in your UPI application. Recall that receiving payments to your account does not require you to click "pay" or enter your PIN.
3. Never allow someone to use the controls on your phone or computer
Even people who pretend to make crucial setting adjustments or update your KYC shouldn't have access to your computer or mobile device controls.
4. Avoid clicking on dubious links that you get in your email or SMS
Do not click on shady links sent to you by email, WhatsApp, SMS, social media sites, or any other form of communication. They might lure you in with promises of winning the jackpot or international employment, but all they really do is send you to phishing sites where they steal your personal data.
5. Only utilise verified apps
These days, there are numerous apps accessible for shopping, gaming, and obtaining stocks and loans. Use only trusted apps to ensure your safety. They can be downloaded from reputable websites like the Google Play Store, Apple App Store, or Windows App Store.
6. Frequently alter your UPI PIN
It's a good idea to change your UPI PIN once a month to keep your account secure. If not every month, then at least once every three months.
7. Create UPI payment restrictions
Set a UPI transaction limit for each day. Should you become a victim of fraud, it can lessen its effects.
Prevention is always preferable to cure, as they say. In order to avoid UPI fraud, always keep a record of your bank transactions and go by the safety advice. Utilising secure payment methods is one approach to keep protected. To protect your personal data and financial transactions, we have put in place security standards and procedures.