Scammers steal Rs 1 crore from 81 users who were making UPI payment in Mumbai, how to stay safe

UPI (unified payment interface) payments have revolutionised India's online payment hemisphere. From online shopping, and travel booking to buying groceries or veggies from roadside vendors, UPI allows you to transfer money between bank accounts instantly. According to the Reserve Bank of India, the daily transactions hosted by UPI have crossed from 24 crore to 36 crore in February 2022. However, with popularity, the online payment system has also become a prominent base for online fraud.

According to a report by the union finance ministry, cyber cells recorded more than 95,000 fraud cases of UPI transactions between 2022-23. While the National Payments Corporation of India (NPCI) has developed the real-time payment system- UPI secure yet, scammers are exploiting loopholes or unawareness of people to extort money.

UPI scam going viral

In a viral case of UPI fraud, online scammers are using "payment mistake" tactics to trick money and steal money from their bank accounts linked to UPI. Reports suggest that the viral UPI scam has looted more than Rs 1 crore from 81 people in Mumbai.

According to FIR and testimonies by victims, the scammers are sending money to people on their UPI apps like Google Pay and then contacting them claiming that the transfer was a mistake. Then the unknown caller requests people to send the money back to their number. However, as soon as someone sends the money back, the scammers hack into their UPI account and steal money directly from their bank account.

How UPI scam takes place

In the viral UPI scam, the fraudster sends money to the victim's account through the UPI app and then claims it was sent by mistake. The fraudster then calls the victim and asks them to repay the amount to their number.

If the victim repays the money using the UPI app, malware infects the victim's device, giving the scammer access to their entire data, including bank and KYC (Know Your Customer) details such as PAN and Aadhaar. With this information, the scammer can hack into the victim's bank account and cause further damage.

The UPI scam is said to be a sophisticated mix of malware phishing and human engineering, making it challenging to protect against. Existing anti-malware software may not be sufficient to safeguard mobile payment application users from this online fraud.

How to protect yourself from UPI fraud

Sharing how the UPI scam works Pavan Duggal, a renowned cybercrime expert based in Delhi explains to Livemint that, "this (UPI Scam) is a mix of malware phishing plus human engineering and hence existing anti-malware software may not be sufficient to safeguard Mobile payment application users from this online fraud."

He further asks UPI users not to fall for such tricks and if someone contacts them about a wrong transaction, ask the caller to collect the amount from the nearest police station. Additionally, tell them that you have alerted their bank about the issue and the police can further complete the process.

Additionally, these scammers also ask for a screenshot of the payment being sent. However, do not share the screenshot too, as these scammers are capable of using the transaction details to hack the UPI gateway to steal money.

While the viral cases of UPI don't make the payment gateway unsafe or vulnerable. But the misinformation or lack of awareness might lead you to the trap of scammers. To stay safe, it is essential to remain vigilant and take appropriate measures to protect yourself from potential fraud. By staying informed and taking the necessary precautions, you can help ensure their online transactions remain safe and secure.

Further, here are some points to follow to avoid UPI payment related fraud:

Use a trusted UPI app: Only use UPI apps from reputable sources like your bank or official app stores. Make sure to download the app from a trusted source.

Create a strong UPI PIN: Choose a PIN that is difficult for others to guess and avoid using easily identifiable numbers like your birthday or phone number.

Do not share your UPI PIN: Never share your UPI PIN with anyone, not even with people you trust. UPI transactions require your PIN, so keep it safe and confidential.

Verify the payee's details: Always double-check the payee's details before initiating a transaction. Verify their name, UPI ID, and other relevant details before sending money.

Be wary of unsolicited calls or messages: Be cautious of unsolicited calls or messages that ask for your UPI PIN, account details, or OTP. Scammers often use social engineering tactics to trick people into revealing their confidential information.

Enable transaction limits: Many UPI apps offer transaction limits that can be set to restrict the amount of money that can be sent in a single transaction. This can help limit the damage if your account is compromised.

Keep your UPI app updated: Always update your UPI app to the latest version, as updates often include security enhancements and bug fixes.

Monitor your transactions: Keep an eye on your UPI transactions regularly and report any suspicious activity to your bank immediately.