New UPI Scam Exposed! Don't Be a Victim

A new scam involving UPI overpayments has recently come to light. Fraudsters send a small amount to the victim's account and then pressure them into transferring a much larger sum back, claiming it was an accidental overpayment. 

This article details how the scam works and provides tips to stay protected.

How Do UPI Scams Work?

The scam usually begins with an unsolicited transfer of Rs. 200 to the victim's UPI address. Within minutes, the victim receives a call from an unknown number. The caller, in a panicked tone, stated that they had mistakenly sent Rs. 20,000 instead of Rs. 200 and urgently needed the excess amount back. Claiming there is a family emergency, they put continuous pressure on the victim to return the money. 

To add legitimacy, fraudsters ensure the transaction reflects correctly as Rs. 200 in the SMS alert. However, taken by surprise and in a rushed state, victims misread this amount as Rs. 20,000. Fraudsters also disguise their identity and transaction details to avoid detection. Once the return transfer is complete, they immediately disappear.

Tips For Staying Safe Against UPI Scams

There are some simple tips one can follow to avoid falling for such scams:

• Never feel hurried into transfers, especially those involving large sums. Take time to calmly verify the details.

• Double-check the transaction amount mentioned in all SMS alerts and notifications. Scammers rely on hasty mistakes.  

• Be aware of unsolicited messages or calls demanding money transfers. Verify the sender's identity through independent channels before complying with a money transfer with them.

• Report any suspicious activity immediately to the bank and UPI app provider. Early reporting can help stop fraudulent transactions.

• For unrecognised numbers, let the call go to voicemail; if voicemail is not available, then the number can be looked up on True Caller to check its authenticity. Scammers usually hang up if no one picks up quickly.  

• Exercise caution with poorly lit or diminished displays where amounts could be misread. Use a well-lit area during transfers.

• Consider labelling contacts to avoid confusion later. This helps identify unknown entities trying to reach out.

Policy Level Safeguards

While individual vigilance is crucial, policy-level safeguards can address certain vulnerabilities exploited by such scams:

• SMS alerts could display amounts numerically to prevent misreading. Formatting tools like inserting commas are lacking.

• Strict KYC and verification norms on UPI handles may help identify fake accounts used for fraudulent activities.

• Highlighting unusual transaction patterns via notifications can empower users to verify unexpected requests. 

• Streamlining reporting mechanisms and data sharing between banks, apps, and law enforcement aid in faster scam detection.

• Public awareness drives educating users, especially the elderly, on common digital tricks that could save many from financial losses.

Conclusion

The recent UPI overpayment scam demonstrates fraudsters' continued innovation in deceiving innocent users. While individual vigilance remains crucial, relevant authorities must also strengthen protective measures within online transaction systems. 

Clearer communications, more verification processes, and streamlined reporting can help curb such online fraudulent activities. Only through coordinated efforts between users, banks, and regulators can India utilise fintech's benefits while minimising the risks of digital theft.

To report a case of such cybercrime, readers can report a complaint on the government's cybercrime portal here.