Common Types Of UPI Frauds And How To Avoid Them

India's Unified Payments Interface (UPI) clocked its highest-ever number of transactions at 8.7 billion in March 2023

<div class="paragraphs"><p>(Source: Freepik)</p></div>
(Source: Freepik)

UPI fraud is a growing concern in the present digital landscape. It is when criminals look to exploit vulnerabilities in the Unified Payments Interface (UPI) to gain unauthorized access and manipulate transaction data linked to UPI apps like Paytm, PhonePe, and others. 

Fraudsters also use social engineering techniques to communicate with victims via email or SMS convincing them to share confidential information such as bank details, UPI ID, and other financial data which can thereafter be used for malicious purposes.

Here are a few types of UPI frauds that you should know : 

  • Phishing Scam

Phishing scams are becoming increasingly common as fraudsters use different methods to steal our financial information. One of the most egregious forms of phishing is the UPI payment link scam, where deceptive links arrive via SMS. 

These links will appear to come from banking sites, and they are designed to look almost identical to the original URL in order to fool unsuspecting victims. Clicking on one of these fake URLs leads directly to the UPI payment app, which can automatically debit funds from any account chosen.

Those who fall victim to this scam not only lose money immediately, but their devices may also become infected with viruses or malware that can steal all personal and financial information stored on the device.

How To Save Yourself From Phishing Scam? 

To protect yourself from being a victim of such an attack, you should always double-check any payment links you receive before clicking on them and ensure that they are genuine. You should also keep your device secure by regularly updating your software and installing antivirus protection whenever possible. Being aware of new scam tactics being used by criminals is also key in handling suspicious messages and avoiding being tricked into giving away personal information or funds.

  • Unverified Links 

With the increasing popularity of UPI apps, users may be unaware that they do not always need to scan a QR code or enter their UPI pin in order to request or transfer money. This is a tempting action for malicious hackers, who frequently send out fake links with seemingly legitimate requests in order to steal financial information.

How To Save Yourself From The Unverified Links

Clicking on these links will lead to a page asking for your private UPI pin, or even scanning a QR code. Although this might seem like an obvious giveaway that it’s not a legitimate source, many users are unaware and end up revealing sensitive data. Connecting personal bank accounts directly with UPI apps can provide convenience, but it also increases the risk of getting hacked. It’s important for users to be vigilant about unverified links and only rely on sources that are confirmed secure before entering any confidential information.

  • Remote Screen Monitoring

Remote screen monitoring is a security concern when downloading apps from the app store. Since many of these unverified apps are not adequately checked for potential privacy breaches, it can be difficult to know which ones are safe and which ones can collect personal information or access UPI app data. This can not only lead to data leakage but also UPI fraud due to the access the third party may have had.

How To Protect Yourself From Remote Screen Monitoring

For those who want to guard against such privacy violations, certain precautions need to be taken. Verifying each app before installing them, using secure networks whenever possible, and ensuring that no malicious codes are embedded in downloaded items are all effective strategies for protecting against remote screen monitoring and other security threats. Investing in up-to-date antivirus software is also essential as this will help catch any potentially dangerous downloads before they can do any serious harm. Additionally keeping regular backups of your data creates an extra layer of protection in case anything goes wrong.

In conclusion, UPI frauds are a serious issue and one should take the necessary precautions to ensure online financial security. Taking steps like only downloading genuine payment apps from reliable sources, adding additional layers of security to your transactions, as well as keeping yourself updated with the latest advancements in fraud-detection techniques such as fingerprint and facial recognition can drastically reduce the potential for successful scams.

Additionally, using trusted payment gateways can go a long way in guaranteeing complete customer satisfaction. UPI frauds mostly occur when users become complacent or lack awareness.

Hence, staying aware is key and actively taking preventive measures can help strengthen your online security system significantly.

Will Users be charged for UPI transactions above Rs 2,000 starting April 1, 2023?