UPI Frauds: Tips to use UPI safely and transact with ease

Some of the most common errors on the UPI platform are caused due to customers being confused among payment requests and collect requests. Since for many users, UPI is a new concept they are unable to tell the difference between the two and end up paying for something they were supposed to receive money for. 

Just like there are two sides to a coin, there are two sides to every story. While the digital medium has made lives a lot easier, even in terms of finances, there have been many cases of misuse of the digital media as well. With the increased use of UPI, there have been increasing chances of UPI frauds. However, a few careful measures can save you from falling prey to such fraudsters.

Don’t Share Passwords

 important tips that individuals should keep in mind. One should never share his/her UPI PIN with anyone and should change regularly to avoid falling prey to cyber-attacks. Also, make sure to inform the bank in case you receive anonymous calls asking for details such as your UPI PIN or ATM PIN. 

When in doubt, reject. If you suspect fraud or see an incorrect amount for a collect request you were expecting, reject the request. You can always ask the sender to resend it, post verification.

Fraudulent Apps

Such a fraud is less common and more complicated. However, it leaves a user even more helpless than the first. In this, a malicious actor poses as a customer care executive/ employee of a certain company or bank. They call the user under the false pretext of a technical error to get the users to cooperate.

Remember that you will never have to enter your PIN to receive money via UPI.

Other best practices

There are some other tips you can follow while using UPI to keep your money protected:

  • Pay attention to spam warnings: Third-party apps today highlight suspicious UPI requests from an unknown account with a spam warning.
  • Follow security practices: Implement biometric security for your UPI apps. Never share your device PIN or your UPI PIN in any form.
  • Check your account regularly: There might be minor red flags that you’re missing, which might be caught using this method.
  • Avoid open Wi-Fi: Check for trustworthy Wi-Fi before connecting.
  • Be sceptical of freebies: When someone calls you up for free gifts or cashbacks, it is best to avoid that call.
  • In case anything goes wrong, call official customer care numbers from within the app you’re using.

Despite being a relatively new payment method, UPI has already attracted a lot of attention from all corners of the payments ecosystem, as well as some unwanted targeting from malicious actors. However, if you stick to the practices mentioned above, you should be protected against the current, and perhaps even some of the future UPI frauds that might come your way. Stay safe, bank safer!

Frequently Asked Questions 

How do I report online money fraud?

In case of online fraud, you need to contact the company or bank that issued the credit/debit card and inform them about the fraudulent charge. You can ask them to reverse the transaction and give you a refund.

Is the bank responsible for UPI fraud?

No, the PSP (Payment Service Provider) is responsible for any losses incurred during any instance of online payment fraud.

What happens if I get scammed?

If at all you’ve been scammed, you should consider reporting the fraud to the responsible authorities to see if they can take any action, as well as to your state consumer protection office. You can also report scams to the FTC (Federal Trade Commission).

Do banks actually investigate fraud?

Yes. They do so as a protection service for their customers so that they don’t have to worry about the ever-increasing sophistication of fraud. The first thing the bank will do is try to substantiate that fraud has actually occurred. They will ask the cardholder to provide additional details about the transaction and how they know it’s fraudulent. Secondly, depending on the type and scale of fraud, the bank decides on whether higher authorities are needed to interfere with the matter.

Is it safe to share account numbers?

Yes, It is generally safe to give someone your basic bank account details like the account number to deposit money. But, If people ask for key pieces of information like your social security number and IFSC code, then it could be dangerous.

What happens if someone hacks your bank account?

If at all your bank account is hacked, you need to verify your account activity < call your bank < freeze your account < change your PIN and other relevant passwords < check your transaction history < file a police report.

Do banks refund fraudulent money?

Yes, banks are obligated to refund the money back in case of any fraudulent activity. In most cases, banks offer debit fraud protection and must refund the money as long as the customer follows the bank’s fraud reporting procedures in a systematic manner.