Common UPI Fraud Techniques to Watch Out For

Introduction

Unified Payments Interface (UPI) has revolutionised the way Indians transact, offering a convenient, secure, and instantaneous payment system. With the exponential growth of UPI transactions, however, comes an increased risk of fraudulent activities. Fraudsters are continuously devising new techniques to exploit unsuspecting users and steal their money. In this blog, we’ll delve into some of the common UPI fraud techniques prevalent in India, empowering users to recognise and avoid falling victim to these scams.

Understanding UPI Fraud : UPI misrepresentation includes unapproved exchanges or misleading practices pointed toward fooling clients into sharing delicate data or allowing admittance to their UPI accounts. Fraudsters utilize different strategies, including social designing, phishing, and malware, to complete their plans. Understanding the normal UPI misrepresentation procedures is pivotal for clients to successfully defend their funds and individual data.

1. Phishing Attacks :Phishing is a prevalent technique used by fraudsters to trick users into revealing their UPI credentials or sensitive information. Phishing attacks often involve deceptive emails, text messages, or phone calls that appear to be from legitimate sources, such as banks or payment service providers. These messages typically contain links to fake websites that mimic the interface of genuine UPI apps, prompting users to enter their login credentials or OTP (One-Time Password) details.Once users unwittingly provide their information on these fake websites, fraudsters gain access to their UPI accounts and initiate unauthorised transactions. To avoid falling victim to phishing attacks, users should exercise caution when clicking on links or providing personal information online. Legitimate banks and payment service providers will never ask users to disclose their login credentials or OTP details via email, text message, or phone call.

2. SIM Swap Fraud : Using a replica SIM card for the victim’s cellphone number, fraudsters can intercept OTPs issued during UPI transactions by engaging in SIM swap fraud. Usually, fraudsters use forged documents or assume the identity of the real number owner to fool mobile network companies into issuing a duplicate SIM card. After obtaining the victim’s mobile number, they can use it to intercept OTP messages provided by payment service providers or banks and carry out illicit transactions.

Users who suddenly lose network connectivity or receive notices regarding SIM card replacement requests that they did not make should get in touch with their mobile network operator right away to reduce the danger of SIM swap fraud. Users can also activate extra security measures like UPI PINs and biometric authentication.

3. QR Code Fraud : In order to divert UPI payments to their own accounts, scammers use fraudulent QR codes in place of real ones. Usually, fraudsters make fictitious QR codes that mimic those used by payment service providers or retailers, then carefully place them in public areas or on phony goods. The money is transferred straight to the fraudster’s account rather than to the intended receiver when gullible people use these phony QR codes to make payments.

Users should confirm the legitimacy of QR codes before scanning them to make payments in order to prevent becoming victims of QR code fraud. They can accomplish this by comparing the QR code to the merchant’s or payment service provider’s official website or app. Users should also be cautious when scanning QR codes.

4. Remote Access Fraud : Social designing tricks include fraudsters manoeuvring clients toward revealing their UPI qualifications or individual data through mental control or misdirection. These tricks frequently exploit human feelings like apprehension, interest, or desperation to fool clients into making moves that undermine their security. Normal social designing methods utilised in UPI extortion incorporate pantomime, pretesting, and goading.

To protect against social designing tricks, clients ought to stay cautious and doubtful of spontaneous solicitations for individual data or delicate information. They ought to abstain from sharing their UPI accreditations, OTP subtleties, or other delicate data with obscure people or elements, no matter what the affection or desperation of the solicitation. Also, clients ought to instruct themselves about normal social designing strategies and be mindful while cooperating with new or dubious correspondences.

Conclusion

UPI fraud risk rises in tandem with UPI’s continued ascent to prominence as India’s preferred payment method. Criminals are always developing new ways to take advantage of gullible people and embezzle their money. Users can prevent being victims of fraud by being aware of the prevalent UPI fraud schemes described in this blog and by implementing proactive security measures. To prevent UPI fraud and guarantee a safe and easy digital payment experience for all Indian users, watchfulness, scepticism, and awareness are essential.