Fake UPI Payment: How to Identify Fake UPI Payments?

Fake Unified Payments Interface (UPI) payments continue to be a concern for individuals and businesses, as they lose huge amounts without being aware of it. Fraudsters are constantly scamming innocent people by doing fake UPI payments via fake app screens, QR codes or misleading payment links.

This article provides a comprehensive guide on identifying fake UPI payments and verifying genuine UPI payments, ensuring your transactions are secure.

What is a Fake UPI Payment?

A fake UPI payment is a fraudulent transaction in which scammers make recipients believe that a payment has been successfully made. It can be made in several ways, such as sending false UPI payment screenshot confirmations or using apps with fake UPI payment interfaces. These scams often target those who rely on quick payments, making it easy for fraudsters to take advantage of the situation.

Scammers deceive individuals and businesses into believing that transactions are authentic. To protect yourself, it is essential to remain vigilant and verify any payment claims. Always check your UPI transaction history and confirm with the sender before providing any goods or services.

Common UPI Scams in India

Here are the different types of UPI scams prevalent in India:

Fake Payment Screenshot:

Scammers use fake screenshots of payment confirmations to deceive the recipient into believing they have paid the money. They use an app or editing software to make a fake transaction screenshot instead of sending real money. They share this fake screenshot with businesses or shops and receive the goods or services without actually paying for them.

Money Muling:

Scammers lure innocent people into transferring stolen money from a UPI account. It makes victims unwilling accomplices to the scheme, as they collaborate with the scammers' fraud.

Emergency Scams:

Scammers create a sense of urgency and pressure people into sending money for fake emergencies or charitable causes. It leaves no time for the victims to confirm the legitimacy of the requests.

SIM Swap Fraud:

In SIM-swap fraud, criminals co-opt a victim's phone number by swapping the SIM from one person to another. Thereafter, scammers can intercept OTPs, enabling them to commit unauthorised transactions that result in losses for the victim.

Fake Rewards and Offers:

Apart from all these scams, fraudsters lure victims with attractive deals or rewards and upfront payments through UPI. Once payment is made, the sellers will vanish, and the victims will end up with nothing for their money.

How to Identify Fake UPI Payments?

Identifying fake UPI payments is crucial to ensure scams do not victimise you. Here are different ways to identify fake UPI transactions:

Unsolicited Payment Requests:

Be cautious of unexpected payment requests, particularly from strangers or organisations. Scammers tend to send a UPI request from a fake or misleading handle for approval to send money, but in fact, you are paying cash. Therefore, you must verify the validity of any unsolicited demand before making transactions.

Suspicious Payment Amounts

Verify the payment amount displayed in the screenshot before making the payment. Scammers may alter the screenshots to reflect a different amount. You must be especially cautious when dealing with large or unusual transactions. Additionally, you should always double-check the details to ensure the payment is authentic.

Grammatical Errors and Inconsistent Branding

Usually, fake payment notifications contain grammatical errors and inconsistencies in branding. You can carefully cross-check the sender's screenshot. You must verify the source if you find discrepancies that indicate a fraudulent attempt.

Links and Attachments

You should never open attachments or click on links from unsolicited UPI payment alerts. They lead to malware downloads or take you to phishing websites that can breach the security of your device. Thus, always visit official apps or websites to make transactions.

Fake UPI ID

Scammers create fake UPI IDs that seem real. They may also add extra numbers to their UPI IDs, spell wrong words, or use unusual domain handles. Therefore, always verify if the UPI IDs are verified and double-check any handle before making a payment.

Fake UPI Generators and Apps

Avoid apps or websites that offer fake UPI services or they can provide fake UPI payment screenshots. These are used by spammers for malicious intentions and compromise your UPI safety. Always rely on trusted sources for all payment requirements.

How to Protect Against Fake UPI Payments?

Here's how you can stay vigilant and protect yourself against fake UPI payments:

Verify Payments

Always check your UPI app balance or bank balance before delivering goods or services. Scammers often use fake or edited payment screenshots to confirm transactions. Thus, never rely on images sent by the payer.

Use Secure Platforms

Enable push notifications of payment receipts from secure UPI platforms or apps, such as Google Pay, PhonePe, Paytm, BHIM, etc. Your bank will also send a credit SMS or app notification of payment receipt. Do not rely on a random WhatsApp message or a standard message from an unknown number for a UPI payment.

Avoid Sharing UPI Details Publicly

Do not share your UPI ID on public platforms or social media. If you run a business, use QR codes generated from your bank app to receive payments, rather than those sent by unknown individuals.

Have a Separate Account for UPI Transactions

Link UPI to a secondary account with limited funds to receive payments. This minimises the risk of fraudulent money withdrawal attempts.

Use Strong Device Security

Use a strong password lock for the app and enable double-factor verification to prevent fake UPI payments. Keep your UPI app and phone updated to patch vulnerabilities. 

Report Suspicious Activity Immediately

If you detect any fake payments, contact your bank’s customer care immediately and report the suspicious activity. You can also use NPCI’s UPI dispute portal or file a cybercrime complaint when you suspect fake UPI payments. 

How to Verify Genuine UPI Payments?

Verifying UPI payments is crucial to avoid falling victim to scams. Here is how you can ensure it is not a fake UPI transaction:

Check UPI ID

Always confirm the UPI ID of the recipient or sender before proceeding with any transaction. Ensure the ID confirms the authorised account of the individual or organisation you are working with. A slight difference in the UPI ID may indicate fraudulent activity. If you are suspicious, reach out to the person or company using an alternative communication channel to confirm their identity.

Confirm Payment Request

Before proceeding with a payment, confirm the request directly with the sender. It is essential to be prepared if you receive an unexpected request. Scammers often impersonate trusted contacts, so taking this extra step can help prevent falling victim to fraud.

Look for the Verified Merchant Badge

While making business payments, always check that the merchant has an authenticity badge on their UPI profile. A badge indicates that the vendor has been verified, signifying their authenticity. If the badge does not exist or looks suspicious, proceed with the transaction at your own discretion.

Beware of Unsolicited Payment Links

You must be cautious of unsolicited payment links sent via messages or emails. Typically, scammers use such links to lure victims into providing sensitive information and making unauthorised payments. Hence, verify the source of any payment link before clicking on it. 

Transaction Alerts

Once payments have been made, please check your transaction notifications. Most UPI apps give an alert or notification for every transaction, which helps you monitor your expenditure and recognise unauthorised transactions. If you notice any discrepancies or unusual transactions, please report them to the bank or payment service provider immediately.

Conclusion

Fake UPI payment scams are on the rise and can result in significant financial losses. Therefore, always verify payments, avoid relying on screenshots and add safe verification procedures to secure yourself. Authenticate payment details through the correct channels and cross-verify the UPI IDs of receivers or senders as needed. Being vigilant and informed can heavily reduce your chances of becoming a victim of fraud and secure your financial well-being.

Related UPI Articles:
1. UPI Transaction Charges
2. Offline UPI Payment
3. How to Reverse Wrong UPI Transactions?
4. BHIM UPI Payments App