March 06,2026
UPI Fraud Cases Surge 85% – Learn How to Stay Safe
We can give a key takeaways bullet points at the beginning after H1
Riya, 23, thought she knew digital payments inside out. She used UPI for all common transactions like splitting bills, online shopping and paying bills. So when a ‘bank official’ called about a suspicious payment and asked her to confirm an OTP, she didn't think twice and complied. By the time she realised it was a scam, ₹48,000 had vanished.
Riya is a part of the generation that grew up with smartphones. Yet, she became one of thousands caught in the rising tide of UPI frauds. According to the finance ministry data, in FY-25, 10.64 lakh UPI fraud cases, which involved ₹805 crore, were reported. A significant number of these cases also go unreported.
The numbers here only makes us more cautious that UPI fraud can happen to anyone. So let’s break down how today’s scammers operate and how you can stay safe.
Let’s look at the most common tricks they use.
Top 8 Common UPI Frauds and Smart Ways to Avoid Them
1. OTP Fraud (One-Time Password Scam)
In this scam, fraudsters pretend to be bank officials, UPI support staff or even RBI representatives. They create urgency by saying your account is blocked, a suspicious transaction has happened or your KYC needs immediate updating. During the conversation, they ask you to share the OTP sent to your phone.
The moment you share that OTP, they use it to authorise a transaction and transfer money from your account. Many people fall for this because the caller sounds professional and confident.
Safety measures
Never share your OTP with anyone under any circumstances. Banks and UPI apps do not ask for OTPs over phone calls, SMS or WhatsApp. If someone pressures you or creates panic, disconnect the call and contact your bank directly through the official number on their website or app.
2. Fake QR Code Scam
Fraudsters often target people selling items online or expecting refunds. They send a QR code and say you need to scan it to receive money. Many people believe scanning a QR code brings money into their account.
In reality, scanning a QR code is meant for making payments. If you scan it and enter your UPI PIN, the money goes out of your account. By the time you realise it, the amount has already been deducted.
Safety measures
Remember that you do not need to scan a QR code to receive money. Money can be received directly into your UPI ID or phone number. Only enter your UPI PIN when you are intentionally making a payment.
3.Payment Request (Collect Request) Scam
You may receive a ‘Collect Request’ notification on your UPI app saying you are receiving a refund, cashback or prize money. The message may look genuine and even carry a trusted company’s name.
However, when you click ‘Approve’ and enter your UPI PIN, you are actually sending money to the other person. Many users mistake approval for receiving funds.
Safety measures
Always read payment requests carefully. If a transaction requires your UPI PIN, it means money is being debited from your account. You need to enter PIN only to send money and neverr to receive it. Decline any unexpected or suspicious payment requests immediately.
4. Phishing Link Scam
Scammers send fake messages claiming your account will be blocked unless you update your KYC or verify your details. The message contains a link that looks like an official bank or UPI website.
When you click the link and enter your login credentials, card details or PIN, the fraudsters capture this information and use it to access your account. These fake websites often look almost identical to real ones.
Safety measures
Do not click on unknown links received via SMS, email or WhatsApp. Always type the official website address directly into your browser. Check the URL carefully for spelling errors or unusual domain names.
5. Fake Customer Care Scam
When people face payment issues, they often search online for customer support numbers. Fraudsters take advantage of this by posting fake helpline numbers on search engines and social media.
When you call these numbers, they pretend to help but ask for your OTP, card details or request that you install certain apps. Instead of solving the problem, they access your account and transfer money.
Safety measures
Always use customer care numbers listed on the official app or website of your bank or UPI provider. Never share your OTP, PIN, or card details with anyone claiming to be support staff.
6. Screen Sharing App Scam
In this scam, fraudsters convince you to install screen-sharing apps like AnyDesk or TeamViewer, claiming they need it to assist you with a refund or technical issue.
Once installed, they can see everything on your screen, including OTPs and banking details. They may guide you to perform actions that result in money being transferred from your account.
Safety measures
Do not install screen-sharing apps at the request of strangers. No legitimate bank or payment service requires remote access to your phone. If you accidentally install such an app, uninstall it immediately and change your banking passwords.
7. SIM Swap Fraud
In a SIM swap scam, fraudsters collect your personal information and request a duplicate SIM card from your mobile operator. Once activated, your phone suddenly loses network service.
Meanwhile, the fraudster receives all your OTPs and bank alerts on the new SIM. They can reset passwords and access your accounts without your knowledge.
Safety measures
If your SIM suddenly stops working without reason, contact your telecom provider immediately. Avoid sharing personal information publicly and enable email alerts for banking transactions as an added safety layer.
8. Job, Lottery or Investment Scam
You may receive messages offering easy jobs, lottery winnings, or high-return investments. Fraudsters often show fake screenshots or testimonials to gain your trust.
They usually ask for a small “registration” or “processing” fee through UPI. After you transfer the money, they either demand more payments or disappear completely.
Safety measures
Be cautious of offers that promise quick money or guaranteed returns. Genuine companies and lotteries do not ask for upfront payments. Always verify before sending money to unknown individuals.
In case something worse happens
Frauds can happen to anyone. If you find yourself a victim, act fast,
- Inform your bank or UPI app immediately
- Call 1930 (Cybercrime Helpline – India)
- Report at cybercrime.gov.in
Final Thought
Digital payments are built on speed. Fraud thrives on that same speed.
So the next time your phone buzzes with a payment alert, a collect request or a limited-time warning, pause for a second longer than usual.
And sometimes, that one extra second is all it takes to decide whether you stay in control… or someone else does.
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