In the era of digital payments, the Unified Payments Interface (UPI) has revolutionised how we transact. However, with the rise of UPI adoption, there has also been a surge in UPI fraud. According to recent data, over 13.4 lakh cases of UPI fraud were reported in the 2023-24 financial year, resulting in losses exceeding ₹1,087 crore.
As a responsible citizen and user of digital payment platforms, it is crucial to stay informed about the common types of UPI fraud and learn how to protect yourself from falling victim to these scams. In this article, we will delve into the world of UPI frauds, explore the various tactics used by scammers, and provide you with practical tips to safeguard your hard-earned money.
Understanding UPI and How It Works
Before we dive into the common types of UPI fraud, let us first understand what UPI is and how it works. UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows users to transfer money between bank accounts using a smartphone.
To use UPI, you need to create a UPI ID, which is a unique identifier linked to your bank account. You can then use this UPI ID to send or receive money from other UPI users. The transactions are secured by a 4- or 6-digit PIN, which you need to enter to authorise any payment.
Common Types of UPI Frauds in India
Scammers are always on the lookout for new ways to trick users and steal their money. Here are some of the most common types of UPI fraud prevalent in India:
1. Phishing Scams:
Fraudsters send fake links or messages that look official to trick you into sharing your UPI PIN or bank details.
2. Fake UPI Payment Requests:
Scammers send a “payment request” on UPI asking you to approve it, pretending they’re sending you money — but you actually end up paying them.
3. Remote Access Scams:
Fraudsters ask you to install screen-sharing apps so they can secretly control your phone and steal your banking information.
4. QR Code Frauds:
Scammers send fake QR codes claiming you’ll receive money, but scanning them actually sends your money to their account.
5. Impersonation Scams:
Fraudsters pretend to be someone you trust — like a friend, relative, or bank official — to trick you into transferring money or sharing private details.
Identifying Potential UPI Frauds
To protect yourself from falling victim to UPI fraud, it is essential to know how to identify potential scams. Here are some red flags to watch out for:
· Unsolicited calls or messages claiming to be from your bank or a UPI service provider.
· Requests to share your UPI PIN, OTP, or other sensitive information.
· Unexpected payment requests from unknown sources.
· Suspicious links or attachments in emails or messages.
· Offers that seem too good to be true, such as winning a lottery or receiving a large sum of money.
What to Do If You Fall Victim to UPI Fraud
Despite taking precautions, if you find yourself a victim of UPI fraud, here are the steps you should take immediately:
1. Contact your bank and block your UPI account.
2. File a complaint with the cybercrime cell or on the National Cyber Crime Reporting Portal.
3. Change your UPI PIN and other account credentials.
4. Monitor your bank statements for any unauthorised transactions.
5. Report the fraud through your UPI app's complaint window.
Protecting Yourself from UPI Frauds
Prevention is always better than a cure. Here are some tips to help you protect yourself from UPI fraud:
1. Never share your UPI PIN, OTP, or other sensitive information with anyone.
2. Always verify the authenticity of payment requests before approving them.
3. Use a strong password and enable biometric authentication for your UPI app.
4. Regularly monitor your bank statements and UPI transaction history.
5. Avoid clicking on suspicious links or downloading unknown attachments.
6. Keep your smartphone and UPI app updated with the latest security patches.
Legal Rights and Compensation in UPI Fraud Cases
As per RBI guidelines, if you report an unauthorised UPI transaction within 3 days, your bank is liable to provide a full refund. If you report the fraud within 4-7 days, your liability is limited, ranging from ₹5,000 to ₹25,000, depending on the type of transaction.
However, if you report the fraud after 7 days, the refund eligibility is based on your bank's policy, and you may have to bear the loss. It is crucial to report any UPI fraud immediately to minimise your financial loss and increase your chances of getting a refund.
Final Words
UPI has undoubtedly made our lives more convenient, but it has also opened doors for scammers to exploit unsuspecting users. By staying informed about the common types of UPI frauds, knowing how to identify potential scams, and taking proactive measures to protect yourself, you can significantly reduce the risk of falling victim to these frauds.
Remember, your financial security is in your hands. Always be vigilant, verify before you transact, and never share your sensitive information with anyone. If you do fall victim to UPI fraud, act swiftly and report it immediately.
Along with practising safe digital habits, it’s equally important to safeguard your finances with the right insurance coverage. Trusted providers like Generali Central Insurance offer comprehensive protection plans that can help you stay financially secure against unexpected events or losses. Having the right insurance not only provides peace of mind but also ensures that you and your loved ones remain protected while you confidently navigate today’s digital financial world.
FAQs
1. Is it safe to share a UPI ID?
Sharing your UPI ID is generally safe, as it is a virtual payment address and does not contain sensitive information. However, never share your UPI PIN or OTP with anyone, as these are used to authenticate transactions.
2. How long does it take to get money back after reporting a UPI fraud?
The time taken to resolve a UPI fraud complaint varies depending on the case's complexity. However, banks are required to resolve the issue within 90 days of receiving the complaint.
3. Can banks reverse UPI transactions made due to fraud?
Yes, banks can reverse fraudulent UPI transactions if a complaint is filed within the stipulated timeframe and the fraud is proven.
4. Is there any helpline number for reporting UPI fraud in India?
Yes, you can report UPI fraud by calling the National Cyber Crime Helpline at 1930.
5. Are UPI transactions protected under RBI guidelines?
UPI transactions are governed by RBI guidelines, which require banks to compensate customers for unauthorised transactions reported within a specific time frame.
