Digital payments have become an essential part of everyday life in India, with millions of people using Unified Payments Interface (UPI) to send and receive money within seconds. From shopping online and selling second-hand products to paying shopkeepers and splitting bills, UPI has made financial transactions faster and more convenient. However, the growing popularity of digital payments has also created opportunities for cybercriminals to cheat unsuspecting users.
Beware From UPI Fraud
One of the most common tricks used by online scammers is to convince people that they must enter their UPI PIN to receive money. Fraudsters often target individuals selling used smartphones, furniture, household appliances, clothes and other products through online marketplaces and social media platforms. They may pretend to be interested buyers, claim that they have already initiated a payment, and then send a fake QR code or payment link to complete the transaction.
The most important rule to remember is simple: You do not need to enter your UPI PIN to receive money. A UPI PIN is generally required to authorise a payment from your bank account, not to receive money into it. If someone asks you to enter your PIN to collect a payment, receive a refund or claim money, stop and verify the transaction before proceeding.
How Do UPI Payment Scams Work?
Cybercriminals often use social engineering to manipulate victims into making mistakes. Instead of directly stealing a person’s banking details, they create a situation in which the victim unknowingly authorises a payment to the fraudster.
For example, suppose you have listed an old television, mobile phone or piece of furniture for sale on an online marketplace. A person contacts you, expresses interest in the product and agrees to pay the advertised price without much negotiation. The person may even claim to be purchasing the item for a family member or arranging a quick pickup.
After gaining your trust, the supposed buyer may say that they are ready to transfer the money immediately. They might send a QR code, a payment request or a link and instruct you to scan it and enter your UPI PIN to receive the amount.
This is where the fraud takes place. If the QR code or payment request is designed to collect money from your account, entering your UPI PIN could authorise a debit instead of a credit. The victim may believe that they are accepting a payment when, in reality, they are sending money to the scammer.
Fraudsters may use similar tactics while pretending to issue refunds, release security deposits, process prize money or complete online transactions.