In the digital age, UPI has become the default payment system for many Indians, offering a convenient and efficient way to make transactions. While the convenience and accessibility of UPI have brought about a number of benefits, with the rise in adoption, the amount of risk involved with transactions has also increased starkly. This is because as most individuals have shifted to using UPI and online messengers like WhatsApp, they have also become the go-to platform for many scamsters and fraudsters, increasing the number of fraudulent activities. In fact, according to the Reserve Bank of India’s Annual Report, frauds rose to 36,075 in 2023-24 from 9,046 in 2022-2023. These alarming statistics highlight the importance of awareness, understanding and implementation of proper UPI fraud protection activities. What is a UPI Fraud? UPI fraud refers to unauthorised and fraudulent activities carried out by using a person’s UPI ID or PIN without their consent or knowledge. Fraudsters use calls to trick users into revealing personal and sensitive information like OTP PIN, UPI PIN, or passwords. These frauds can lead to financial loss, which is difficult to recover. Types of UPI Fraud Scamsters use various techniques to exploit users and know their personal information. To beware of them, the following are the types that will help you take necessary UPI fraud protection steps: Phishing: Fraudsters send fake emails or messages, pretending to be trustworthy sources like banks or any financial institution, to access the user's information by requesting they share OTP, PIN, or passwords. Fake UPI Apps: Users may unknowingly download a fake UPI app, which is a clone of a legitimate one. These applications are designed to steal their personal information. Malware: In phishing emails, when you click on infected links, you are taken to unsecured websites or download software that can steal your sensitive information or UPI credentials. SIM Card Cloning: Scammers duplicate your SIM card to get the OTP and control your messages and bank accounts. This is generally done when you receive an OTP, and once you share that OTP, your SIM and phone get trapped. Fake Calls: You may receive calls from fraudsters who pretend to be bank professionals and ask for your bank account number, card details, and more. Try to avoid these calls and immediately report or block them. How Does UPI Fraud Takes Place? While you have understood various tactics of scammers, here’s a step-by-step guide to how they execute the fraud: Fraudsters will call, pretending to be an official to make you trust them. To make it more reliable and genuine, they’ll ask for basic information like birthdate, name, address, etc. They’ll ask to share any UPI-related or bank issues. These people are always prepared with fake stories to make you believe them. Once the trust is built, they’ll make you download apps like AnyDesk to share the screen. These apps can access everything on your phone. To obtain permission, the scammer will then ask you for a code or OTP that has been sent to your phone. Once you share that code, they can access everything on your phone, including bank details and your UPI account. Tips To Avoid UPI Frauds UPI frauds are on the rise, and it is essential that users understand UPI fraud protection techniques to avoid becoming victims. Follow the below-mentioned tips: Enable 2-Factor Authentication (2FA): To make your transactions more secure, enable biometric 2FA, such as face scanning or fingerprint. Don’t Share OTP or PIN: Avoid sharing the OTP or UPI PIN with anyone. Remember that only fraudsters will ask for such information, and no official bank representative will do that. Monitor Transactions: Regularly check your bank balances and monitor your transactions to avoid unauthorised activity. Invest in UPI Fraud Protection Insurance: With fraud on the rise, platforms offer insurance to cover the loss incurred due to fraudulent activities. Download Trusted Apps: Download and only use trustworthy applications from official app stores for UPI transactions. Check Details: Verify the receiver's details, such as name, UPI ID, and amount, twice before sending the money or making any transactions. Be Careful of Any Suspicious Links: Don’t open random links you receive via email or SMS. Avoid making any transactions through these links. Strong Password: Always use a strong password with uppercase and lowercase letters, numbers, and symbols. Avoid using names or birthdates. To avoid fraudulent activity, it is also advisable to regularly update your UPI PINs. If you suspect any UPI fraud, here are the steps to follow: Notify your bank immediately and block your card or UPI account. File an FIR in police stations or a complaint on the NPCI (National Payment Corporation of India) portal. Consider a platform like Stashfin for the best loan protection insurance to cover the losses. If any SIM swap fraud is suspected, connect with the mobile operator. Final Thoughts As you explore using UPI for every transaction and move towards being cashless, it is always advisable to learn about UPI frauds and tips to prevent them. Some basic tips are frequent monitoring of your account, using trusted apps, avoiding public Wi-Fi, enabling 2FA, and changing the UPI PINs. At Stashfin, we prioritise customer satisfaction and offer security to the users. In the digital era, the platform understands the importance of protecting personal data. Advanced security measures provide peace of mind so that you can use the services without worrying about getting into fraud. You can get UPI fraud protection insurance from Stashfin, an additional safety measure to cover financial losses due to fraudulent activities. Remember to be cautious and stay informed of the activities via your bank account or UPI ID. With the right precautions and tips, you can enjoy the benefits of a digital payment system without compromising security.
