The Most Common Types Of UPI Frauds

Digital payments have changed how money is exchanged, making it extremely quick and convenient. One of the most popular modes of digital transactions is the Unified Payments Interface (UPI). UPI is very user-friendly and easy to use, as all we need is a UPI ID to send or receive money. However, we also have to be careful when using UPIs for our transactions, as UPI frauds in India are increasing. In 2022-23, more than 95,000 cases of UPI fraud were reported, so we must understand the different types of UPI payment fraud and stay alert and safe.

Common Types of UPI Fraud

UPI transactions enable real-time instant transfer of money and so are widely used by everyone throughout our country. So, it is even more important to stay alert and informed about the common types of UPI frauds to avoid falling victim to such UPI frauds. Some common types of UPI frauds are:

1. Impersonating Genuine Sellers: We often search for various shops and shopkeepers' numbers online. Fraudsters take advantage of this and list their numbers as a business or shop owner. Such imposters then take orders from innocent people and ask customers to pay money via UPI. After sending money, customers never receive the order. Such impersonating or acting like a genuine seller is a common way to fool customers.
2. Phishing: In this type of UPI fraud, customers receive an unsanctioned payment link that appears very similar to the original URL of a vendor or merchant. When a customer clicks on the link, their UPI app opens, and the customer enters their PIN. The money gets debited from the UPI app, leading to an unauthorised transaction.
3. UPI Fraud via Unauthorised Access due to Screen Mirroring Apps: Many times, fraudsters can call pretending to be a bank employee or even list their numbers as the customer care number of reputed and legitimate companies on Google. When you connect with them, they ask you to download apps like Team Viewer or Any Desk. This gives them complete access to your smartphone, and they can carry out unauthorised transactions.
4. OTP and PIN Fraud: This is one of the most common UPI frauds, in which customers unknowingly or innocently share their UPI PINs or OTP with scammers and fraudsters who can access the customer’s account.
5. UPI Fraud via Initiating A Collect Request: Sometimes, fraudsters convince customers to authorise a ‘collect request’ to receive money for a refund or debit reversal. The customers enter their PIN to authorise it, giving access to the fraudster.
6. Misleading UPI Handles: Fraudsters also set up fake social media handles and pages, such as @GPAYHELP or @BHIMCUSTOMERCARE, to mislead customers and contact customers who have lodged complaints on the official pages. Then, they pretend to be customer care executives and manipulate customers into sharing their personal information for financial transactions.
7. SIM Cloning: SIM cloning is the latest fraud that has become very popular since banks started requiring OTPs. If a scammer clones your SIM, they can obtain the OTP on their device and alter your UPI PIN. The scammer obtains your bank account information and identification and then resets your UPI PIN.
8. Malware: Another common UPI fraud is malware. You can download it by mistake from an unsecured website or by using a fake email attachment. Once you download it unknowingly, the purpose of malware is to retrieve and duplicate data from the compromised device.
9. Vishing: Vishing is when fraudsters pose as bank representatives and ask questions on the bank's behalf. These fraudsters create a web of lies and ask a lot of personal questions to obtain your personal information and password or PIN.

How Do Hackers Execute UPI Fraud?

Generally, fraudsters follow a set pattern for their plans, so we can summarise them in a step-by-step manner. This is how UPI frauds usually occur:

• STEP 1: A fraudster's first move is to try to get your attention, so it starts with a random call. Fraudsters avoid texting, so they pretend to be bank representatives who are calling about a harmless and regular issue.
• STEP 2: Once the call is connected, they ask verification questions like our date of birth, name, or phone number to make the call seem official and legitimate.
• STEP 3: Fraudsters will always tell you that there is some problem with your account or app. They will make up false stories that sound very convincing and try to get your personal information to solve the issue.
• STEP 4: Once you are convinced of an issue, the hackers will ask you to download some app like AnyDesk or ScreenShare on your phone.
• STEP 5: When you download any such app, it will ask for privacy permission like any other regular app. But these apps can easily access all the data on your phone.
• STEP 6: The fraudster will then ask you for a 9-digit OTP generated on your phone. When you tell them the code, they will also ask you to grant permission from your phone.
• STEP 7: When you give permission, the hacker can control your phone without your knowledge. They will steal passwords and initiate UPI transactions once they have full access to your phone.

This is how you can fall victim to UPI fraud. There are also a few other ways in which fraudsters may approach you. For example, they send an SMS asking you to forward it to another number they give you. Once you forward the message, they can link your phone number or account through UPI to their phone.

So, always stay alert and never give your personal financial information to anyone over the phone or via SMS.

Recovering From UPI Frauds: Step-by-step Guide to Retrieving Your Money

If, unfortunately, you fall prey to UPI fraud, these steps will help you get your money back. Registering a UPI fraud complaint with your bank and at the police station is important.

• Contact Bank: Contact your bank’s customer care and inform them about the fraud. Provide all necessary details of the UPI fraud and ask them for a refund for that transaction.
• Lodge Police Complaint: Lodge a formal fraud complaint at your local police station. Give them all the details, and attach your bank statements and any other communication proof that you have.
• Cybercrime Portal: You should also register a complaint on the official cybercrime portal of India and attach all necessary documents for official records.

How to Stay Safe From UPI Frauds and Scams in India

When you use online payment methods, you also have to become alert while using such methods. Financial literacy includes convenience, security of digital transactions, and protection of customers as per RBI’s ‘Go Digital, Go Secure’ initiative.

• Always remember, as per RBI guidelines for UPI frauds, you never need to share your PIN for any UPI transactions. You also never have to give your PIN to receive money; if you do so, your account will be debited, and money will be deducted from your account.
• The next thing to do is be cautious while receiving money on UPI, as fraudsters often misuse the ‘COLLECT REQUEST’.
• Always be careful of fake apps as such apps mirror your phone and give access to hackers to misuse them.
• Also, never click on links or download attachments from unsecured websites or messages.
• Lastly, never share any confidential financial information with anyone else.

Basic Do’s and Don’ts to Avoid UPI Fraud

Some basic Do’s and Don’ts to avoid UPI fraud are:

Dos:

• Secure your UPI PIN and never share it with anyone, even if they claim to be a bank representative.
• Verify and check all the details about the receiver carefully when paying someone via UPI.
• Use verified and trusted UPI apps and download them from the app store only. Also, regularly update them as most updates also include enhanced security measures.
• Ensure that you are using a secure Wi-Fi connection for all your UPI transactions.
• Check your transaction history regularly, and if you notice any unauthorised activity or transactions, immediately notify the authorities.

Don’ts:

• Never share your UPI PIN with anyone. Remember, banks or any financial institution will never ask for your PIN.
• Do not click on any suspicious links or messages asking for your UPI PIN or personal information.
• Do not authorise any transaction without verifying all details of the receiver and the amount of payment.
• Avoid using public or unsecured Wi-Fi networks for UPI transactions, as hackers can easily access these.

Frequently Asked Questions (FAQs)

1. Can I get my money back from UPI fraud?

   Yes, fraudulent UPI transactions or those done by mistake can be refunded. You must ask your bank or the UPI payment app to reverse the transaction. You can request a refund by providing information like your UPI ID or VPA.

2. Can a UPI transaction be reversed?

   It is possible to reverse a UPI transaction in some cases, such as accidental transfers, frauds, or technical errors. However, it will depend on whether the recipient acts upon your request or not.

3. Do banks refund scammed money in India?

   It is not guaranteed, but it is possible. Banks will investigate the matter and may reverse the transaction if you report it promptly and it is proven fraudulent.

4. How to spot a fake UPI ID?

   If you want to verify a UPI ID, you can cross-check it on your bank statement or within your UPI app’s transaction history.

5. How to report a UPI fraud?

   If you are suspicious of any fraudulent UPI activity, report it immediately.

   • Police Complaint: File a UPI fraud complaint at your local police station and provide all the necessary details.
   • UPI app support: Report the fraud to the UPI app’s customer care.
   • NPCI complaint: You can also file a complaint on the NPCI portal and give all the transaction details.

6. How do you get money back from UPI frauds?

   It is possible to get a refund after losing money in any UPI fraud. However, it depends on the bank policy, the type of scam, the amount of fraud, and how promptly you report the scam.