Common Types of UPI Frauds and Ways to Avoid Them

UPI transactions are one of the most important and convenient online transaction methods at present. This mode of transaction is hugely popular among all age groups, and almost every bank allows its users to link accounts with UPI payment methods. Hence, for online platforms, popularity enhances the chances of hacking. Users in the UPI ecosystem may also face the same issues.

In this article, there will be a discussion on common UPI frauds and their solutions. Keep reading to know more.

Team Digit

What Are the Common UPI Frauds?

Some of the common UPI scams are as follows -

1. Phishing

Phishing UPI fraud happens when you accidentally click on malicious payment links. These links direct the users to the UPI application and perform auto debit. In addition, these links also infect the device and cause further harm.

2. Fraud Sellers

This has become a very common fraudulent practice nowadays. Scammers usually place their phone numbers on business listicle sites, and when you purchase something, they ask for prepayment via UPI transaction. In these cases, receivers do not get any product, but the money gets deducted. It further enhances the chance of hacking your UPI account.

3. Fraud Through Screen Monitoring Apps

Downloading unauthorised applications can lead to this type of issue. In addition, sometimes, you can be asked to download these apps for payments by fraudulent sellers. Scammers collect your personal information, such as information of UPI applications, through these apps.

4. Money Mule

It is a greatly organised scam where fraud rings collect money by getting UPI information and storing them in a separate account. This intermediary account works like a money mule where money comes from different sources.

5. SIM Cloning

Frauds generally clone SIM by sending you an OTP, and once you share this OTP, your phone and SIM get trapped. Once scammers get your personal information, they can easily change your UPI details and scam you.

6. Deceiving UPI Handles

This type of UPI scam is very common on social media pages where you can reach out to false seller pages. Here if you provide any of your online transaction details, hackers will be able to intrude into your personal space.

7. Fake Calls

Frauds may act as bank employees and call you to ask for your personal details such as bank account number, UPI PIN etc. You should avoid these calls to stop them from tampering with your online transaction.

8. Malware

Malware is a common UPI scam that happens when you click on phishing emails. These emails contain infected links redirecting you to unsecured websites or downloading faulty third-party applications. Afterwards, frauds can copy your transaction details and use them wrongly.

9. Collect Request

Frauds may ask you to pay money for debit reversal or other refund-related causes. The scam occurs if you provide your data without verifying these collect requests.

How Do Hackers Execute UPI Frauds?

Investigations reveal that hackers generally follow a pattern to execute hacking. This is as follows:

Step 1: Hackers call their targets by disguising themselves as bank employees to make the whole process more reliable to the users

Step 2: They ask for basic information such as birthday, name, address etc.

Step 3: They ask to share any bank or UPI app-related issues

Step 4: As you mistakenly trust them and share your issues, they will ask to share your data

Step 5: They will also ask you to download any app that will scan every data from your phone

Step 6: Scammers will send a 9-digit code to users

Step 7: Upon providing the 9-digit code, scammers will get full access to users’ UPI application and bank account

Tips to Avoid UPI Frauds

To avoid harmful intrusion into your UPI account, you can follow the below-mentioned tips -

Read UPI-related RBI guidelines carefully.
Do not share any of your bank details with anyone asking as a bank employee.
Report any unauthorised debit as soon as you notice it.
Try to get customer service numbers from official sites only.
Be very careful with payment requests.
Do not click on spam links.
Avoid unauthorised shopping sites.

Therefore, consider this guide on UPI frauds to potentially identify and avoid the issues of getting scammed. Adhering to rules and implementing technical securities can avoid these frauds and enjoy seamless transactions.

FAQs About UPI Fraud

All

Can antivirus help in UPI scam?

Yes, antivirus software can help in UPI scams as they alert you about harmful applications and stop you from downloading them.

How to use UPI safely in public?

You should hide your PIN while putting it in public and avoid using public Wi-Fi to place your transaction.

Can someone hack my bank account with my UPI ID?

This possibility is limited, but there have been such instances before. A hacker might get access to your UPI account, thereby illegally transferring money from your account. Do not share your UPI credentials to avoid this issue.