Increasing UPI Scam in the country

With the rapid growth of digital payment transactions in India, UPI (Unified Payments Interface) frauds have become alarmingly frequent. According to the Reserve Bank of India’s Annual Report for FY 2023-24, the number of digital payment fraud cases soared to 36,075 from 9,046 in the previous fiscal year. Despite this significant increase in the number of fraud cases, the total monetary loss from such frauds decreased from ₹45,358 crore to ₹13,930 crore. 
 
The number of digital payment fraud cases increased by nearly four times, highlighting a rising trend in fraudulent activities as digital transactions become more widespread.
 
In a UPI overpayment scam, fraudsters send you a request for a small amount of money or ask you to accept a collect money request. They often use various tricks to distract you and ensure you do not notice the fraudulent activity.

 
You receive a UPI collect money request from an unknown number or ID. The amount requested is often small to avoid raising suspicion.
 
Scammers might call you pretending to be a customer service representative or bank official, providing a convincing reason for the request. They use distraction tactics to keep you preoccupied and not scrutinize the request carefully.
 
It is also possible that, scammers may call you pretending to be from a bank or customer service, distracting you with fabricated stories or urgent requests. They aim to keep you preoccupied so that you accept the request without verifying its authenticity.
 
Fraudsters may send fake messages or emails that appear to be from legitimate sources, asking you to click on a link and enter your UPI PIN, which they can then use to authorize transactions from your account.

The key takeaway is if you receive an unexpected payment, verify the identity of the person or entity who sent the money. Contact them through official channels rather than responding directly to the contact attempt.
By understanding the modus operandi of the UPI overpayment scam and following these protective measures, you can safeguard yourself from falling victim to such fraudulent activities. Always exercise caution when dealing with unexpected financial transactions and prioritize the security of your personal and financial information.

Ms. S Mohini Ratna - Editor VARINDIA