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User Safety
Data Privacy India Malicious Apps Mobile Security UPI Scam UPI Payment User Safety

Upsurge in UPI Fraud Cases: How can you Guard Against These Scams

 

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.
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UPI Payment
AADHAR Cyber Fraud CyberCrime KYC Scam Online Payment Fraud PAN Reserve Bank UPI Payment

Viral KYC Scam in Mumbai Steals Rs 1 Crore from 81 Users

 


The UPI (Unified Payment Interface) payment system has significantly changed how online payments are made in India. The UPI system allows banking customers to transfer money instantly across bank accounts for all kinds of transactions, including online shopping and airline reservations, as well as grocery and vegetable purchases from roadside vendors. 

UPI daily transactions have increased from 24 crores a day in February 2022 to 36 crores a day. This is according to a Reserve Bank of India report. There is no doubt that online payments have grown in popularity, but they have also become a crucial hub for committing internet fraud as a result of the same.

There has been a significant rise in online payment activity in India since the pandemic. A newly implemented implementation of unified payment interface (UPI) applications has been implemented in the country to facilitate cashless money transfers. This shift is not widespread yet. 

Nevertheless, people are kept in the dark about such apps, and scammers have developed creative ways to swindle them. 

A widespread UPI fraud case has surfaced. Online con artists exploit "payment mistake" strategies to defraud victims and steal funds from their bank accounts connected to UPI. According to reports, 81 Mumbai residents have been cheated out of Rs 1 crore by a viral UPI scam that has spread across the country. 

As soon as the fraudster sends money to the victim's account through the UPI app, they claim that the transaction was a mistake, then return the money to them. Once the victim has been contacted, the caller asks for payment to continue the call. There is a possibility, however, that the fraudster could gain access to all the user's personal information if the user funds back via one of these UPI apps. Bank account details, and KYC information, such as PAN and AADHAR number, are among the information included in this. As a result, the con artist can then hack into the victim's bank account and do more damage to the victim based on the information in this file. 

An experienced cybercrime expert in Delhi, Pavan Duggal, argues that this approach combines malware phishing with social engineering to create a sophisticated blend of cybercrime attacks. Adding to the difficulty of this, he explained that it is a combination of malware phishing with human engineering that is making users of mobile payment applications vulnerable to online fraud. Therefore, current anti-malware programs may not be sufficient in protecting users. In response to such calls, he advises users to inform the con artist that they have notified their bank about the issue. 

As a result of scammers using applications that utilize UPIs to send money, such as Google Pay, the average individual is scammed. According to the FIR and victim statements, they then call them to claim that they made an error in transferring the funds to the account. A mystery caller calls a particular individual using the phone number that has been provided to ask them to return the money to them by using the same number. The con artists take money from a person's bank account as soon as they are sent money back in case they are sending money back in the form of UPI. 

Mr. Douggal advises users to say to the caller that he or she should pick up the cash at the nearest police station. The repayment should not be made through the app itself. It is also important to not take a screenshot of the payment being sent to a stranger as this establishes a personal connection with the person and will also allow access to their sensitive information. 

In case the victim pays back the money using an app called UPI on the victim's smartphone, the malware will infect the smartphone infected. Con artists can access all of their confidential data, including bank account details and KYC (Know Your Customer) information, including PANs and AADHAARs. 

When the con artist has this information, anyone can access the victim's bank account to continue harming anyone. 

As a security precaution, you must look for possible frauds and take appropriate steps to safeguard yourself against them. You can ensure your online transactions are safe and secure by knowing what to look out for and taking the necessary precautions.
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