NPCI Dismisses Fraud Concerns Over 'Jumped Deposit' Scam On UPI

The National Payments Corp. of India has dismissed claims of fraud on the Unified Payments Interface platform linked to the so-called 'Jumped Deposit' scam. Addressing recent media reports, the NPCI clarified that the allegations are based on technical misconceptions and no such instances have been reported on the platform.

In a statement, the company reassured users that UPI remains a secure and robust payment system, emphasising that transactions cannot occur without the user's explicit authorisation. Simply opening a UPI or banking app does not initiate or approve any payment, the note said, as all transactions require users to manually approve requests by entering their UPI pin.

The clarification comes after reports described how scammers allegedly deposit a small sum of money into a victim’s account and then trick them into sending a larger amount.

Fraudsters reportedly contact victims claiming the deposit was accidental and request the difference to be returned. Victims, curious about the unexpected deposit, often check their balance by entering their UPI pin, after which, they unknowingly approve a fake payment request.

NPCI explained that UPI is a device-based payment system where the user’s account is securely linked to their registered number and specific mobile device. It reiterated that no external party can access or withdraw funds without the user’s direct action and that entering the UPI PIN, even for balance inquiries, does not authorise any withdrawal or payment.

The organisation advised users to remain vigilant but assured them that UPI is built with stringent safety protocols and regulatory measures. Major payment platforms, including Paytm, have also cautioned users to verify unexpected deposits with their banks and avoid sharing their UPI PIN under any circumstances.