UPI Fraud in India: 7 Type of Scams & Safety Tips
In the year 2016, UPI was launched by the Indian government. This digital revolution has changed the way we handle money. Transferring funds is now as easy as sending a message. But while UPI has made our lives more convenient, it has also opened the doors to digital scams.
In 2024, India recorded a massive increase in UPI frauds, with thousands of users losing their hard-earned money to clever cyberthieves. Whether you’re sending money to a friend or paying at a local kirana shop, being aware of these scams can help protect your hard-earned money.
Let’s reveal the 7 latest UPI scams you should watch out for —and, most importantly, how to stay safe.
1. Clicking Links on SMS and WhatsApp
How it works:
Scammers send fake messages posing as banks, UPI apps, or government services like the RBI or NPCI. The received message contains a link asking you to “update your KYC” or “verify your UPI details.” Clicking it leads you to a website that looks real but is well designed to steal your UPI credentials.
Real Example:
In March 2024, a Delhi-based teacher clicked on a link claiming to be from Paytm for KYC verification. Within a few minutes, ₹38,000 was deducted from her account.
How to stay safe:
- You should never click on unknown links received via SMS or WhatsApp.
- Official UPI apps never send such links for KYC updates.
- Check the website address carefully — fake ones often use small spelling changes like “paytm-india.in” instead of “paytm.com.”
2. Fraudulent QR Code Scams
How it works:
The scammer sends you a QR code, pretending it’s for receiving money. But when you scan it, you’re actually sending money from your account.
Real Example
A man from Ajmer tried to sell his old sofa online. A buyer on OLX agreed, and then he sent a QR code saying, “Scan this and you’ll get ₹3,000 instantly.” That man scanned it — and ₹3,000 was debited, not credited.
How to stay safe:
- Keep Remember: QR codes are for sending money, not for receiving.
- Never scan QR codes sent by strangers.
- Use UPI apps only with trusted people or merchants.
Learn: How to Create UPI ID Without a Bank Account in 2025: A Practical Guide
3. Beware of Fake UPI Payment Screenshots—Don’t Get Fooled!
How It Works:
Scammers often pretend to pay for a product or service using UPI apps like Google Pay, PhonePe, or Paytm. Instead of actually transferring the money, they send a fake payment screenshot that looks real — hoping you’ll believe the transaction is complete.
This scam is especially common during:
Second-hand product sales (like phones, electronics, furniture)
Small business deliveries
Freelance or home services
4. Customer Care Number Scams
How it works:
You search for the customer care number of a UPI app or bank on Google. A scam number shows up. When you call, the scammer asks for your UPI PIN or sends a “remote access” app like AnyDesk or QuickSupport to “fix” the problem — and empty your account.
How to stay safe:
- Always visit the official website or UPI app for customer care numbers.
- Never share your UPI PIN or install unknown apps sent by “executives.”
- UPI support teams will never ask to control your phone.
5. Fake UPI Collect Requests – A Clever Trick to Steal Your Money
🔍 How It Works:
Scammers send you a fake UPI payment request that says something like
“Approve to receive ₹1,000.”
But here’s the trick— when you approve it, you’re not receiving money
You’re actually sending ₹1,000 to the scammer.
These frauds rely on confusion or urgency, especially during:
Online sales
Customer support scams
Lottery or cashback traps
6. Job Scams with UPI Payments
How it works:
Scammers offer fake job roles and ask for a “registration fee” or “training charge” via UPI. Once paid, they vanish.
Example:
In Hyderabad, several students were scammed into paying ₹500–₹2000 as registration for a “work from home” typing job through Google Pay. After payment, the “recruiter” disappeared.
How to stay safe:
- Legitimate jobs don’t ask for money upfront.
- Verify the company’s presence online.
- If it seems too easy or too good to be true, it usually is.
7. Remote Screen-Sharing Apps for UPI Theft
How it works:
You are tricked into installing screen-sharing apps like AnyDesk or TeamViewer. Once installed, the scammer can see your screen and guide you to open your UPI app, capturing all the details and your PIN.
How to stay safe:
- Never install apps at the request of an unknown person.
- Use your phone privately when making financial transactions.
- Be especially cautious if someone asks for your phone screen to be visible while using UPI.
What Makes UPI Users Vulnerable?
Here are 3 key reasons why users fall prey to UPI frauds:
- Trusting strangers too easily—especially in the context of online deals and urgent requests.
- Lack of awareness—Many don’t know how UPI apps work, especially older users.
- Carelessness while approving payments—a single tap can cost thousands of rupees.
Quick Tips to Stay Safe from UPI Scams
- Use UPI apps only from trusted sources (Google Play Store or App Store).
- Always double-check the recipient before sending money.
- Turn on UPI app notifications to track real-time transactions.
- Do not share your UPI PIN, OTP, or bank details with anyone.
- Use a strong lock (fingerprint, face ID, or PIN) on your phone and UPI app.
- Report fraud immediately to your bank and file a complaint on the National Cyber Crime Portal.
Summary
UPI is a fantastic tool that has made money transfers fast, easy, and efficient. But with great convenience comes great responsibility”. Scammers are getting more clever these days, so even we should stay alert.
If you use UPI daily — whether to pay bills, shop online, or send money — staying informed is your best defense.
Also Read: Best UPI Apps in India 2025 – Features, Limits & Safety Tips (PhonePe, Google Pay, Paytm, BHIM & More)
At MoneyPocket.in, our goal is to help you stay ahead of financial traps. Be smart, be safe, and spread this awareness with your family and friends — especially those who may be more vulnerable, like elderly parents or new digital users.
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