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Tata Capital > Blog > Personal Use Loan > How To Prevent Yourself From Falling A Victim to 5 Types Of UPI Frauds in India

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How To Prevent Yourself From Falling A Victim to 5 Types Of UPI Frauds in India

How To Prevent Yourself From Falling A Victim to 5 Types Of UPI Frauds in India

With the digital world booming, digital transactions are on the rise. Here, UPI transactions have become the most convenient means. Just enter a four-digit number, and you are all set. However, the most suitable option poses some security concerns and loopholes. 

According to the Reserve Bank of India reports, Indian banks have reported 4,071 fraud cases. Furthermore, as per media reports, more than 80,000 UPI frauds are recorded in a month in India. This information may leave you concerned but worry not as you can prevent yourself from these frauds with some preventive measures. How? Let’s understand in this blog.

But first, be aware of the five types of UPI frauds in India. Let’s begin.

Different Types of UPI Frauds in India

Digital transactions offer a hassle-free user experience. However, they are prone to some UPI related frauds. What are they? Let’s explore.

  • Phishing

With this practice, hackers send you bogus emails to access your data. After opening an email, if you enter critical details like your PIN or password on their site, the hacker receives your key information within seconds and misuses it.

  • Unverified links

Hackers usually send fake links by using the option “request money” to purchase from you. Once you click that link, it asks you to scan a QR code or enter your UPI PIN. If you provide these details, it’s a jackpot for hackers, as they get a hold of your crucial information, which may be misused, resulting in a UPI scam.

  • Deceptive UPI handles

Using this method, fraudsters create fake UPI handles containing some financial institution-associated terms that make you trust them and use them by entering vital details.

  • SIM cloning

With SIM cloning, fraudsters try to duplicate your SIM to access your mobile number and mobile SIM. After doing that, they get control over your text messages, OTP, PIN, and other sensitive information, resulting in UPI frauds.

  • Malware

You often click on the link in bogus emails by mistake. This leads to you downloading software that further enables fraudsters to hack your digital transaction app data from the infected device.

How Can You Prevent Yourself From UPI Payment Frauds?

  • Don’t engage with fraudsters

Your bank or NBFC never asks you for sensitive information over a call or email. So, if you receive a call or email regarding the same, don’t engage with them unless and until you cross-check their identity. Hackers are always on the lookout for engaging ways to cheat people through UPI payment frauds. So, it is your job to be careful while disclosing your key details.

  • Be cautious when accepting or requesting requests

If you receive a “Request money” invitation through some app by fraudsters, it’s a red flag. Fraudsters use this feature to show their interest in your product if you have listed it online to sell. Remember, you don’t need to enter your UPI pin when receiving money.

  • Pay attention to UPI app spam warnings

As UPI payment frauds increase rapidly, UPI apps play a safety guard. How? They alert you to spam warnings if they receive a request from unknown numbers. Do not overlook these warnings, as you might lose thousands of rupees. Make sure to report spam if you notice any suspicious accounts.

  • Stay away from malicious apps

Sometimes, you end up downloading and installing a digital transaction app that resembles the original app. However, fraudsters use this practice to cheat people and access their sensitive information through these apps. For example, when you enter your information when installing and using the app, fraudsters get access to your confidential data. It may result in money withdrawal from your account.

  • Avoid using open WI-FI

Transferring data or making digital transactions on open WI-FI is a bad practice. Moreover, it offers a wonderful opportunity for hackers to steal the confidential data present on your device. So be sure to use a secured Wi-Fi connection.

  • Follow security practices

Make a habit of following some security practices listed below:

  1. Never share your OTP, pin, or passwords with anyone.
  2. Protect your digital transaction app using biometric recognition software.
  3. Always ensure the UPI app you are downloading is recognised by RBI to avoid a UPI scam.
  4. Contact your financial institution if you notice any suspicious activity in your account.

Final Thoughts

Though digital transactions are an easy-to-go option for making payments, you need to be extra cautious. You struggle hard to earn a penny, so do not let it go to the hackers by overlooking safety measures. By following the practices mentioned above, you can prevent yourself from the UPI scam every day.

Besides, if you’re looking for safe and reliable finance options, consider Tata Capital’s personal loan. To explore more visit our website!

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