With the festive season around the corner, it's boom time for online shopping, making digital payments and ordering multiple bulk deliveries at home. However, this is also a time when scamsters are at the peak of digital frauds and look for every opportunity to take advantage of the increased transaction volumes and consumers' desire to grab the best deals.
With online scams becoming more sophisticated, fraudsters use technology and social engineering to make unsuspecting consumers a false sense of urgency and trust, from AI-generated phishing messages and deepfake videos to fake shopping sites and tampered QR codes.
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The Ministry of Home Affairs has said that losses due to cyber fraud in 2025 were approximately Rs 22,495 crore, highlighting the need to raise awareness during the festive shopping season.
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Here are five emerging payment scams that consumers should not fall prey to
1. AI-driven phishing and deepfake scams
Fraudsters are using artificial intelligence to come up with new ways to scam consumers. They are using fake customer service chats, disguised voices, deepfake endorsements of celebrities and deceptive phishing messages to push fraudulent offers or steal sensitive information.
Consumers may get delivery alerts, refund alerts or KYC messages which seem "genuine" but contain harmful links within. The biggest signs of a scam include unsolicited messages with offers that seem too good to be true and messages containing unknown links. If you are ever in doubt, verify the offer on the official website or app of the 'probable company' mentioned in the message, rather than clicking on the link that has come from a message or email.
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AI-driven phishing and deepfake scams are on the rise
Photo Credit: NDTV Profit
2. Fake shopping sites and look-alike sale pages
Fake websites posing as popular retailers are becoming increasingly common during big festive sales. These sites often have big sales and deals but could steal your payment information or take your money and not send any product, leaving you in the lurch.
Shoppers should be careful of misspelled web addresses, unrealistic discounts, missing contact information and vague return policies. Before making a purchase, it is important to verify the seller, review customer feedback and transact only through trusted platforms and secure payment channels.
3. QR code and payment request fraud
As digital payments become more popular, QR-code and payment-request scams are constantly evolving. Scammers may also share fake QR codes or UPI collect requests that appear to be cashback rewards, refunds or prize claims to deceive consumers to authorize a payment instead of receiving a payment.
Another rising danger comes from altered QR codes at retail stores. As a general rule, you should never need to enter a UPI PIN to receive money. Consumers should carefully review the details of any payment request and transaction before approving a transfer.
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4. Social engineering and impersonation fraud
Fraudsters are increasingly using the tactic of impersonating different officials to build up trust with the potential victims. The tricks are built on creating urgency appearing as if the victim needs to unblock the account, get the refund or resolve the issues connected with the goods' delivery. Becoming suspicious of any demands to share PIN numbers, CVV codes, OTPs or grant access to screen-sharing is warranted. Financial institutions do not call people asking for such details, while using official channels to validate the requests is the safest approach.
5. Credential theft and account takeover attempts
Fraudulent account takeover is a technique used by cybercriminals to gain unauthorised access to bank accounts or payment accounts by using stolen passwords or through phishing links to break authentication. Once they break into an account, these fraudsters can proceed with purchase transactions. Some of the mistakes that indicate fraud include notifications of uninvited OTPs, unknown login attempts and password resetting notifications that users have not requested for.
If consumers want to ensure they do not get tricked into any online fraud, they should use strong passwords that are unique for every account, establish multi-factor authentication and notifications about transactions. Advancements in technology are instrumental in the fight against fraud which are getting sophisticated as commerce changes.
For example, tokenisation technology, detection of fraud based on artificial intelligence and advanced authentication tools have made it possible to establish a major trust in payments and commerce systems. Global networks, such as Mastercard, are continuously investing in security innovations that aim to protect businesses and consumers from fraud. However, remaining vigilant is still one of the best ways to protect customers against fraud.
What to do if you suspect fraud?
If you suspect being a victim of a scam concerning a payment, you must take urgent action. Begin by contacting your financial institution or credit card provider to protect your account and notify them of what happened. Consumers must also reach out to the National Cyber Crime Helpline by dialling 1930 or visiting cybercrime.gov.in.
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