NPCI clarifies ‘Jumped Deposit’ scam claims, says no instances of such fraud on UPI platform

The National Payments Corporation of India (NPCI) on Monday issued a clarification on recent media reports on a so-called “Jumped Deposit” scam, stressing that no instances of fraud as described in the reports have been observed on the UPI platform.

"In light of recent media reports concerning a new online fraud called ‘Jumped Deposit’ Scam, we have observed certain inaccuracies and technical discrepancies in these descriptions, that has led to unnecessary panic and confusion among users about the UPI platform," NPCI said in a statement.

"We would also like to clarify that no instances of fraud, as described in the articles on ‘Jumped Deposit’ Scam, have been observed on the UPI platform," it added.

The media reports claimed scammers exploit UPI users by sending small deposits to their accounts and then tricking them into authorising large payment requests by using psychological manipulation.

The corporation reiterated that UPI is a device-based payment system, securely linking a user’s account to their registered mobile number and device.

“Simply opening a UPI or bank application does not automatically approve a transaction. Users must explicitly authorise a payment request by entering their UPI PIN. Without this step, no transaction can be processed,” NPCI clarified.

“No external party can directly request or withdraw funds from a user’s account...Only the user can initiate transactions or withdrawals, ensuring that others cannot access their funds,” it added.

The report cited experts who described how fraudsters exploit users’ trust and lack of awareness about UPI processes. It claimed many people fall prey due to the misconception that entering a UPI PIN verifies balance instead of authorising payments.

"Inputting the PIN is required even for balance enquiry transactions, and it does not automatically authorise any withdrawal or payment requests which is treated as a separate transaction," NPCI said.

The Tamil Nadu Police had earlier warned users about a fraudulent method in which scammers exploit unsuspecting victims through unsolicited small deposits followed by fraudulent withdrawal requests.