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In case you fall victim to fraud or need help with your UPI payments, know what you should do
Victim of an online scam? Here’s what you can do
The launch of UPI in 2016 has reimagined the way Indians transact, making cashless payments an integral part of our daily life. Since then, the growth has been unstoppable. UPI transactions have grown 34.5 percent in value in the first half of FY25 to Rs 122 lakh crore from Rs 90.7 lakh crore in the year-ago period. The volume grew 46 percent at 8,566.52 crore in the same period.
However, this digital convenience has been accompanied by a significant increase in fraud. In the first half of FY 2025 itself, 6.32 lakh cases of UPI payment frauds worth ₹485 crore were reported. Comparatively, in FY24, there were 13.42 lakh such cases amounting to ₹1,087 crore, a huge spike from ₹573 crore in FY23.
In response to rising numbers of frauds, there are safety measures that the government and relevant authorities have put in place, including enforced regulatory controls on payment service suppliers, real time monitoring, and campaigns for raising awareness. However, users of such digital payment infrastructure share an equal responsibility to adopt adequate safeguards to mitigate the risks associated with digital transactions. Some of the best practices are as follows –
Understanding UPI Payment Mechanics:
Be aware of how UPI Payments operate. Users need not scan a QR code or enter UPI PIN to receive payments. Sharing the recipient’s mobile number (if the payer and the payee are on the same app), VPA handle (e.g.
Cultivate Digital Transaction Vigilance:
UPI offers multi factor authentication (i.e., linking your device to your UPI PIN). However, fraudsters might adopt ingenious means to access the account or initiate an unauthorised transaction. To safeguard payments, Users may adopt the following best practices –
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- Use secure networks to transact. Avoid public or unsecured Wi-Fi networks for sensitive activities like making payments or accessing payment/ bank apps, which pose significant risks of unauthorised data interception, potentially compromising sensitive information
- Download only verified and trusted apps. Do not download private apps without double-checking their authenticity. Be cautious of remote access applications that might compromise account credentials
- Avoid clicking on unknown/non-trusted links received on the phone or posted online.
- Never disclose UPI PIN, OTP, account details, or confidential information such as account-related SMS.
- Contact bank/ payment service provider only on the phone number listed on their official websites
Prudent Payment Practices:
Prevention represents the most effective defence against digital financial fraud. Users are in control till the money is there in their account. Do not attempt to make payments hastily, and –
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- Double-check recipient details before executing any transaction. Leverage UPI’s built-in name verification feature when entering recipient credentials.
- While making payment to a service provider or to a merchant, validate their authenticity, especially while making online payments. If there is something too good to be true, it likely is. Do not fall to scams of cheap products or lucrative investments that appear over promising
- Cybercriminals exploit UPI’s collect payment feature to receive payments from gullible users. Such links would come in the form of SMS from legitimate operators (such as OTT operators, telecom operators), however, payments made using these links would get credited in third party’s accounts. Therefore, verify the authenticity of any payment request and refrain from clicking on unsolicited payment links.
- Check transactional messages received from the bank to identify any unauthorised debits.
Educate yourself: Keep an eye out on newer fraud trends emerging to protect yourself and your friends and family.
What to Do if You Are a Victim of Fraud
In case you fall victim to fraud or need help with your UPI payments, here are some measures –
Contact Your Bank Immediately: Notify your bank as soon as possible to secure your account and for possible recovery. Reserve Bank of India has notified certain circumstances in which Customers have ‘zero liability’ concerning unauthorised transactions, vide its circular dated July 6, 2017, which is also time critical. The sooner you report, the better the chances of recovery.
File a Complaint: File a report on the National Cybercrime Reporting Portal (cybercrime.gov.in). Provide comprehensive details to facilitate law enforcement investigations.
Raise Chargeback: In the event of undelivered goods and services as promised, you may pursue the following options:
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- Raise a chargeback with your bank
- Contact the Payment Aggregator involved in the transaction
- Report to NPCI through their dispute resolution mechanism (https://www.npci.org.in/what-we-do/upi/dispute-redressal-mechanism)
You can pursue the above options in other situations such as where your money has been debited but your beneficiary does not receive the same in a reasonable time.
Report to the Banking Ombudsman: Escalate to the Banking Ombudsman if the responses you have received are unsatisfactory. You may find more details here.
Sanitise your device
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- In cases of suspected device compromise
- Uninstall unrecognised applications and suspicious files
- Secure account credentials
- Seek professional cybersecurity assistance if necessary
Digital payment technologies offer unprecedented financial convenience but also require heightened user awareness. Users can significantly mitigate digital payment fraud risks by understanding transaction mechanics, adopting secure practices, and responding swiftly to potential threats. The future of secure digital transactions relies on a collaborative ecosystem involving financial institutions, regulatory bodies, technology providers, and informed users. Continuous education, technological innovation, and vigilant practices will be key to maintaining the integrity of digital financial platforms.
Written By: Atul Gupta, VP – Risk and Compliance, Cashfree Payments
Disclaimer:The views expressed in this article are those of the author and do not represent the stand of this publication.
