India is going digital as more and more individuals use the internet to shop, order food, and complete other activities.
According to a Times of India (TOI) report, in March 2023, Unified Payment Interface (UPI) transactions reached a record high of 865 crores, with a record value of Rs 14.07 lakh crore. The number of transactions totaled 728 crores, which was 18% greater than in February 2023.
However, as UPI transactions have increased, so have instances of online fraud and frauds. More than 95,000 fraud cases using UPI transactions were reported in 2022–2023, up from 84,000 cases in 2021–2022 according to the Union Ministry of Finance.
Let's focus on UPI frauds in more detail, along with certain precautions you might take.
UPI PIN request
With the promise of sending money, fraudsters occasionally seduce their victims. To receive the money, they then request that their target enter their UPI PIN. The scammer can easily utilise the victim's UPI PIN to withdraw money if they comply and enter it.
Let’s take a look at how UPI scams take place and what you can do to protect yourself.
“For receiving money, no PIN is required. Anyone asking you for a PIN is a scammer,” Prashant Gautam, DCP of the Intelligence Fusion and Strategic Operations (IFSO) unit of Delhi stated.
Customer care fraud
Fraudsters who pose as customer service representatives are also taken in by the public.
A government teacher was recently tricked after calling the number that appeared to be the top search result on Google, thinking it was the Google Pay customer service number.
The con artist promised to assist the teacher when he complained about inaccurate transactions on the Google Pay app and requested his personal banking information. Following the teacher's disclosure of the information, the fraudster withdrew Rs 2.50 lakh from his bank account.
Cybercriminals will occasionally threaten customers with the blocking of their e-wallet if they do not complete KYC or update their Aadhaar or PAN information under the guise of customer service representatives. Later, "under the guise of verification, they ask the victims to download third-party access apps," the police officer continued, "through which they get remote access to the digital wallets."
Money sent by 'error'
Scammers typically send money to their potential targets via UPI apps like Paytm, Google Pay, PhonePe, etc., according to a Delhi Police official, and then contact them to claim that they made a mistake.
The cybercriminal then sends the victim a URL and requests that they use it to repay the money.
If a person clicks on the link, they lose control of their bank account and digital wallet, which the scammer can then access.
Prevention tips
Here are three strategies you should learn to use as self-defense against such frauds.
Avoid engaging with fraudsters: Please don't continue if the caller's identity or the source of the information they are sharing are unclear to you or if you are unfamiliar with the number. Especially for food and beverage establishments, be aware of phone numbers listed on public websites as they might not be legitimate. Always confirm someone's identity by checking again. Never forget that your bank will never phone or text you asking for any type of private information.
Be mindful of the golden rule while receiving payment: No PIN is needed in order to receive money. The 'request money' feature of payment apps is frequently abused by scammers. They will pretend to be interested in purchasing a product you may have posted for sale online. You will NEVER be asked for a PIN if money needs to be debited to your bank account, so keep that in mind at all times.
Watch out for fake apps: Many fraudulent or malicious apps try to trick you by appearing to be something else. The software will have a similar appearance to the original bank app and be simple to download. Your personal information will be shared with scammers if you unintentionally download and install the bogus app, giving them access to your account and enabling them to steal money.
Beware of fake banking apps like Modi Bhim, BHIM Payment-UPI Guide, Bhim Modi App, and BHIM Banking Guide that have been accused of obtaining consumer personal information under the guise of offering a useful service.