The most widely used method for online and cashless transactions is Unified Payment Interface (UPI). Apps like Paytm, PhonePe and GooglePay have become integral to millions of users across the country. However, with the increasing volume of transactions, there is also a parallel increase in cases of UPI-related fraud, with 95,000 incidents recorded across the country in the financial year 2022-2023. It is important to exercise caution when using UPI to ensure the security of personal and financial information. A common occurrence of fraud involves criminals posing as bank representatives to obtain sensitive information.

To protect against UPI fraud, the National Payments Corporation of India (NPCI) has suggested the following measures:

Verify Recipient:

Verify the recipient’s UPI ID before making any transaction.

Avoid making payments without proper confirmation of the recipient’s details.

Do thorough research on the recipient, especially when dealing with payments mentioned on social media or other public online sources.

Use PIN only for payments:

Keep in mind that banks or UPI apps will never ask for your PIN to receive payments.

Any message requesting your PIN for purposes other than making a payment is likely fraudulent.

Use your PIN only for authorized payment transactions.

Payment through QR Code only:

Payment should be made through QR code; You should never need to scan a QR code to receive money.

Be careful if someone requests you to scan a QR code to receive money, as it could be a fraud attempt.

Avoid downloading unnecessary apps:

Avoid installing unnecessary apps on your phone.

Download apps only from legitimate app stores to ensure their authenticity.

Use caution, especially when asked to download a screen-sharing or SMS-forwarding app, and only do so if you fully understand the purpose.

Don’t ignore spam alerts:

UPI applications have a spam filter that tracks repeated payment requests.

Pay attention to warnings regarding payment requests from spam IDs.

Decline payment requests from suspicious or frequently flagged IDs to avoid falling victim to scams.

By following these guidelines, users can enhance their security while conducting UPI transactions and reduce the risks associated with fraudulent activities.