How to Secure Your Account from UPI Frauds

01 February 2023
4 min read

The introduction of UPI as an online payment platform has made our daily transactions much more straightforward. Due to the rising popularity of the Unified Payment Interface (UPI), many people have switched to the UPI mode of payment for regular transactions. This, as a result, has increased the number of UPI frauds in India

It is essential to be aware of these online scams; therefore, it is crucial to understand UPI and how fraudsters use this platform to scam people. Therefore, this blog will discuss securing your account from the UPI scam

UPI is a payment system launched in India in 2016. It allows users to make instant, 24/7 payments to anyone with a UPI-enabled bank account. UPI is regulated by the Reserve Bank of India and is built on the Immediate Payment Service (IMPS) platform. Each bank account has a UPI address used to make and receive payments. 

One of the many reasons why UPI payment is becoming popular is the quick transaction and instant money transfer, unlike the traditional payment method.

While on the one hand, UPI has made our life super easy, on the other, it is rapidly becoming prone to numerous fraud cases as well. Whether cloning, online theft, phishing, or even impersonating genuine sellers, there are various ways to commit UPI fraud.

This blog lets us see how to secure ourselves from UPI fraud.

5 Steps to Protect Yourself from UPI Fraud

The cashless mode of the transaction has become quite popular these days with the initiation of UPI addresses.

With the help of UPI, people can quickly transfer their funds within minutes without any hassle of visiting the bank. But this digital era of cashless UPI payment has also attracted several scammers, thus increasing the number of UPI fraud complaints throughout the country. 

Here are five essential security measures to protect yourself from UPI scams. 

  • Never Share Your UPI PIN or OTP

One major mistake to avoid is to share your UPI PIN and OTP with any customer care representative claiming to be from any bank or government institution.

Always remember that any bank or government institution will never ask for your UPI PIN, OTP, or password. So if you get any call asking for your UPI details, be sure the caller is a fraudster. 

  • Never Give Access to Your Phone or Computer

Asking for access to your phone and computer for KYC purposes is another common way fraudsters scam people to hack their bank accounts. Ensure you never share such access with any customer care agent and do not fall prey to such scams. 

  • Don't Open Any Random Links

You may often receive messages asking you to claim rewards or cash. Never make any transaction through such random links or websites.

It is a way used by fraudsters to collect your UPI PIN and to withdraw money from your bank account immediately. Before making any payment, always check the UPI link and the account holder’s name. 

  • Regularly Changing Your UPI PIN

Another important step towards securing your UPI account is regularly changing your UPI PIN. This can be done quarterly to protect yourself from any UPI fraud. 

  • Be Careful About Payment Requests

If you ever receive a payment request from an unknown source, ensure you do not entertain such notifications. You can immediately decline the payment request if the person seems to be suspicious.

In addition, many fraudsters forward you a QR code, misleading you into claiming a payment. Always remember that you do not need to click on the payment option or enter any UPI PIN to receive a payment. Instead, once you enter your UPI PIN, the money will be automatically deducted from your account and deposited in your account.

Basic Do’s and Don’ts To Avoid UPI Fraud Cases

The following are some of the basic do's and don'ts to avoid falling into the trap of UPI frauds in India -

Do’s

Don’ts

Set a UPI payment limit for daily transaction

Do not open links or emails from unknown sources

Keep track of your transaction history

Do not accept any payment which requires your UPI PIN/OTP

Contact your bank immediately if you encounter any fraudulent activity

Do not accept any payment link if requested from an unknown account

Always connect your phone/laptop to secure wifi connections

Never share your UPI PIN for any KYC-related process.

Conclusion

So, keep these safety measures in mind whenever you encounter any unusual activity or call regarding your UPI account. In addition, a thorough understanding of UPI will also help you learn more about securing your account.

You May Also Be Interested to Know-

1.

Complete Guide to Unified Payments Interface

2.

List of UPI APPs for IPO in India

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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