UPI Scams: How They Work and How to Protect Yourself

With the rise of Unified Payments Interface (UPI), digital transactions have become faster and easier than ever. However, this convenience has also led to a surge in UPI scams, where fraudsters trick users into losing money.

In this blog, we’ll explore common UPI scams, how they work, and the best ways to protect yourself from falling victim.


What Are UPI Scams?

UPI scams are fraudulent activities where scammers manipulate digital payment methods to steal money from users. These scams often rely on social engineering tactics—tricking people into revealing sensitive information or authorizing unauthorized transactions.

Fraudsters use WhatsApp, SMS, fake websites, and even phone calls to execute these scams, often impersonating banks, businesses, or government officials.


Common Types of UPI Scams and How They Work

1. Fake Payment Request Scams

How It Works:

  • The scammer pretends to buy something from you and sends a payment request via UPI apps like Google Pay, PhonePe, or Paytm.
  • Instead of sending money, they trick you into approving a "request money" transaction, which deducts money from your account.

How to Protect Yourself:

  • Never approve a UPI payment request from unknown people.
  • Remember: You don’t need to enter a UPI PIN to receive money—only to send it.

2. QR Code Scams

How It Works:

  • The scammer sends a QR code, claiming that scanning it will help you receive money.
  • When you scan the QR code, it instead authorizes a payment from your account.

How to Protect Yourself:

  • Never scan a QR code to receive money.
  • Verify transactions directly in your UPI app before making payments.

3. Fake Customer Support Scams

How It Works:

  • Scammers post fake customer care numbers online for banks or payment apps.
  • When you call, they pretend to be customer support and ask for your UPI PIN or OTP to "resolve your issue."
  • Once they have your details, they transfer money from your account.

How to Protect Yourself:

  • Always get customer care numbers from official websites or apps.
  • Never share your UPI PIN, OTP, or banking details with anyone.

4. Fraudulent UPI Links

How It Works:

  • Scammers send a message with a fraudulent link, claiming it will help you receive money or unlock special offers.
  • Clicking the link installs malware or redirects you to a fake UPI login page that steals your details.

How to Protect Yourself:

  • Never click on links from unknown sources.
  • Always log in through your UPI app, not a link from a message or email.

5. Job and Cashback Scams

How It Works:

  • Fraudsters offer fake jobs or cashback deals and ask for a "registration fee" via UPI.
  • Once you pay, they disappear, and the job or cashback never materializes.

How to Protect Yourself:

  • Avoid paying upfront fees for jobs or rewards.
  • Verify offers directly with official websites.

6. Fake Lottery or Investment Scams

How It Works:

  • You receive a message claiming you've won a lottery or investment bonus.
  • To claim the prize, scammers ask for a UPI payment as a "processing fee."
  • Once you pay, they vanish, and you never receive any winnings.

How to Protect Yourself:

  • If an offer sounds too good to be true, it probably is.
  • Never pay upfront fees for lotteries or investments.

How to Protect Yourself from UPI Scams

1. Always Verify Transactions

  • Check your UPI app before confirming any payments or refunds.
  • If someone claims they sent money but asks for a refund, verify it in your transaction history first.

2. Never Share Your UPI PIN or OTP

  • Banks and UPI providers never ask for your PIN, OTP, or password.
  • If anyone asks for these details, it’s a scam.

3. Avoid Clicking on Suspicious Links

  • Do not click on links in SMS, emails, or WhatsApp messages promising rewards, cashback, or payment confirmations.
  • Always log in through official UPI apps only.

4. Enable UPI Payment Alerts

  • Set up SMS and email notifications for all transactions.
  • This helps you track unauthorized deductions in real-time.

5. Use Strong Security Settings

  • Enable App Lock and Two-Factor Authentication (2FA) for your UPI apps.
  • Keep your phone and apps updated for better security.

6. Report Suspicious Activity Immediately

  • If you notice fraudulent transactions, report them to:
    • Your bank’s customer care
    • NPCI (National Payments Corporation of India)
    • Cybercrime Helpline (1930) or cybercrime.gov.in

What to Do If You’re a Victim of a UPI Scam?

  1. Immediately report the fraud to your bank and request to block transactions.
  2. File a complaint on the NPCI or RBI’s Digital Payments Grievance Portal.
  3. Report the scam to the cybercrime department at cybercrime.gov.in.
  4. Raise a dispute in your UPI app if the transaction was unauthorized.

Final Thoughts

UPI has made payments easy, but it has also opened doors for fraudsters. By staying alert, verifying transactions, and avoiding suspicious requests, you can protect yourself from UPI scams.

If you’ve experienced a UPI scam, share your story in the comments to help others stay safe!

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