March 27, 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.

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility

RELATED ARTICLES

Factors to consider while selecting a financial advisor

A financial advisor assists with investment decisions, account management, and financial planning, reducing stress over fund growth. Various types include those specialising in planning, investing, retirement, or robo-advisors with automated services. To select the right advisor, understand needs, determine budget, research credentials, choose the right advisor type, and ensure clear communication. Advisors align financial strategy, build trust, and aid in retirement planning amid market fluctuations. Choosing wisely is crucial for success; thorough research and compatibility lead to peace of mind and improved money management. Are you planning to make your money grow, but are not sure how to invest it strategically? Hiring a financial advisor could be a good start in that endeavour. From helping you build a solid portfolio to ensuring that your financial goals are successfully achieved, a financial advisor can help you in more ways than one. A disciplined process will enable you to get your personal finances in order and accomplish both short- and long-term objectives. As per Statista, 35% of Americans availed the services of financial advisors in 2022 to guide them with their investments. In this article, we will share with you some tips on identifying the right financial advisor. So, let’s start with the basics.

United Bank India Mobile Banking

- Have you run out of time to visit your bank branch to make an urgent fund transfer? - Are you looking at an alternative channel for your banking transactions which is convenient, compatible, accessible, comprehensive, easy to use,quicker, free of cost, bundled service offerings and is safe and secure. - Have you lost your network connection and yet you need to view your account balance on an urgent basis?. Mobile banking channel is the answer to your needs. Case in point being, United Bank of India ( UBI). UBI is now a part of Punjab National Bank (PNB), having merged with effect from April 1, 2020. Established in 1950 in Kolkata as a regional private bank catering to the eastern and north-eastern belt, the bank was nationalised in 1969 and over the years, the bank expanded its network of branches and asset base to become a mid-sized PSB ( Public Sector Bank) to include a network of more than 2000 branches and three fully equipped overseas branches in New Delhi, Kolkata and Mumbai. In fact, UBI is among the leading banks in the states of West Bengal, Assam, Tripura and Manipur. Backed by an asset base of ₹1.52 lakh crore ( as on September, 2019), UBI offers a comprehensive portfolio of services across multiple channels, offline and online through netbanking, mobile banking such as check balance, transfer money,make utility bill payments and much more. You can avail these services 247365, even on bank holidays, public holidays, weekends and that too, free of charge.

How do banks make money?

You know that Banks lend you money and keep your funds secure. But, have you ever wondered

RBI Increases Repo Rate & Exactly How Will it Impact You?

The Reserve Bank of India's decision to increase the repo rate has been making headlines lately. And as expected by many, the RBI Hikes repo rate has been increased by 25 basis points to 6.50%. In this article, we will discuss what happens if the RBI increases the repo rate and how the recent RBI interest rate hike in the repo rate by the RBI, makes an impact. Whether you are a borrower or a saver, it is essential to understand the implications of the rate hike and how it may affect your financial planning. So, let's look at the subject and understand what it means for you.