Preventing UPI Fraud: 5 Common Types of Online Fraud

Types of online fraud

In the era of digital transactions, the convenience offered by Unified Payments Interface (UPI) has been unparalleled. However, with the rise in its popularity, there has been a significant increase in UPI fraud, making it crucial for users to recognize and protect themselves from various types of online fraud. This article will delve into five common types of online fraud, providing insights on how to safeguard your digital transactions.

Types of Online Fraud

1. Phishing scams

Phishing remains one of the most prevalent types of online fraud, wherein fraudsters impersonate legitimate institutions or services to steal sensitive information. In the context of UPI fraud, scammers may send emails or SMS messages that appear to be from your bank or a reputable payment platform, asking you to click on a link and enter your UPI PIN or other banking details. The link often leads to a fake website designed to capture your information.

Prevention Tip: Always verify the sender’s details and avoid clicking on links from unknown sources. Remember, no bank or legitimate service will ever ask for your PIN or password via email or SMS.

2. Remote access scams

Remote access scams involve fraudsters convincing users to download an app that gives them remote access to the user’s device. Once they have access, they can easily manipulate UPI apps to transfer money without the user’s consent. Often, scammers pose as bank officials offering to solve a non-existent problem or to enhance the security of the user’s account.

Prevention Tip: Never download apps or software on the instruction of unknown individuals, especially those claiming to offer technical support or financial assistance.

3. SIM swapping fraud

SIM swapping is a sophisticated method where the scammer manages to issue a new SIM card linked to the victim’s mobile number. Once activated, the fraudster receives all OTPs and alerts, enabling them to perform unauthorised transactions through UPI apps linked to the mobile number.

Prevention Tip: Regularly monitor your mobile connectivity. If you experience sudden loss of service for an extended period, contact your mobile service provider immediately to ensure no SIM swap has been requested on your behalf.

4. QR code scams

QR (Quick Response) codes have simplified transactions, but they have also opened a new avenue for fraudsters. Scammers trick users into scanning a QR code under the pretence of receiving a payment. However, scanning the code initiates a payment request from the victim to the scammer. Unsuspecting users who enter their UPI PIN, thinking they are verifying to receive money, actually authorise a payment.

Prevention Tip: Be cautious about scanning QR codes from unverified sources. Remember, receiving money through UPI never requires you to enter your PIN.

5. Fake UPI apps

The proliferation of fake UPI apps is a growing concern. These apps mimic legitimate banking or payment apps and are designed to steal user information. Once downloaded, these apps can access sensitive data, including UPI PINs and banking details, leading to financial loss.

Prevention Tip: Always download apps from official app stores and check the app’s developer, reviews, and ratings before downloading. Be wary of apps that request unnecessary permissions.

In addition to these preventative steps, it’s essential to foster a culture of scepticism when dealing with unsolicited requests for financial information or transactions. Fraudsters prey on urgency and fear, often creating scenarios that prompt immediate action. Take a moment to assess the situation critically—when in doubt, directly contact your bank through official channels to verify any communication claiming to be from them. Implementing a cautious approach to digital transactions, combined with regular updates on security practices, can significantly reduce the risk of falling victim to UPI fraud. In the digital age, your financial security is enhanced not just by the technology you use, but by the knowledge and vigilance you apply in every transaction.

Additional Safety Measures

  • Enable two-factor authentication: Always use two-factor authentication for added security.
  • Monitor transactions regularly: Keep an eye on your bank statements and transaction alerts to spot any unauthorised activity early.
  • Educate yourself: Stay informed about the latest types of online fraud and share this knowledge with friends and family.
  • Use secure networks: Avoid conducting financial transactions over public or unsecured Wi-Fi networks.


As UPI continues to transform the financial landscape in India, it is imperative for users to stay vigilant against the evolving tactics of fraudsters. By understanding these common types of UPI fraud and adopting preventive measures, individuals can safeguard their hard-earned money against online fraudsters. Remember, awareness and caution are your best defences in the digital world.

Sky Smith
Author: Sky Smith

Sky is a personal finance enthusiast and blogger passionate about helping readers navigate the world of loans and credit cards. With a focus on clear explanations and actionable tips, Sky's blog empowers individuals to make informed financial decisions.

About Sky Smith

Sky is a personal finance enthusiast and blogger passionate about helping readers navigate the world of loans and credit cards. With a focus on clear explanations and actionable tips, Sky's blog empowers individuals to make informed financial decisions.

View all posts by Sky Smith →

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