Unified Payments Interface (UPI) has changed the way Indians make payments. From buying vegetables to paying rent, UPI is fast, free, and extremely convenient. Apps like Google Pay, PhonePe, Paytm, and BHIM have made digital payments simple for everyone.
But with this convenience, online scammers are also becoming smarter. UPI frauds in India are rising every year, and thousands of people lose money because of small mistakes or lack of awareness.
This blog will guide you through simple UPI safety tips, common scams, benefits, drawbacks, step-by-step protection methods, and FAQs — all explained in easy language.
What Makes UPI So Popular in India?
Benefits of Using UPI
| Benefit | Description |
| Fast & Real-Time | Money transfers in seconds, anytime. |
| Zero/Low Charges | Most UPI transactions are free. |
| Easy to Use | Works with just a mobile number and bank account. |
| Accepted Everywhere | From street vendors to large businesses. |
| Safe When Used Correctly | Strong encryption and RBI guidelines. |
Drawbacks of UPI
| Drawback | Description |
| Risk of Scams | Social engineering and fake calls can fool users. |
| Device Dependency | Needs a working smartphone and internet. |
| Human Errors | Wrong numbers/QR codes can cause money loss. |
| Fake Apps | Many unofficial apps trap users. |
Common Types of UPI Frauds in India
Understanding these scams helps you avoid them:
- Fake Customer Care Numbers
Scammers put fake support numbers on Google or social media. When users call, the scammer asks for UPI PIN or remote access.
- “Request Money” Scam
Fraudsters send a payment request and tell victims to enter their PIN to “receive money.”
Truth: PIN is only for sending money, never for receiving.
- Fake Cashback and Lottery Messages
Messages like “You won ₹5,000 cashback” contain phishing links or QR codes to steal money.
- Screen-Sharing Apps
Scammers ask users to install apps like “AnyDesk” or “TeamViewer” to view phone activity.
- QR Code Scams
Fake QR codes are shared to trick users into sending money instead of receiving.
- Fake UPI Apps
Look-alike apps steal login details or redirect payments.
UPI Safety Tips: How to Avoid Frauds (Step-by-Step for Beginners)
Below is a simple step-by-step guide that every Indian smartphone user can follow.
Step 1: Never Share Your UPI PIN — With Anyone
- Bank staff will never ask for your UPI PIN.
- Customer care teams do not need your PIN.
- Do not share screenshots of your UPI, balance, or OTP.
Golden Rule:
If someone asks for your PIN, they are a scammer.
Step 2: Always Check the App Name Before Downloading
Only use official apps like:
- Google Pay
- PhonePe
- Paytm
- BHIM
- Your bank’s official app
How to verify?
- Check developer name
- Read reviews
- Avoid apps with few downloads
- Download only from Google Play Store or App Store
Step 3: Be Careful With UPI Payment Requests
If someone sends a request:
- Confirm the person’s identity
- Read the message carefully
- Reject unknown requests instantly
Remember:
To receive money, you do NOT need to enter your PIN.
Step 4: Avoid Clicking Suspicious Links
Scam links may appear in:
- SMS
- Emails
- Social media posts
These links can:
- Install malware
- Steal bank details
- Open fake UPI login pages
If it looks suspicious, do not click.
Step 5: Don’t Scan Unknown QR Codes
QR codes can be harmful. Only scan QR codes from:
- Trusted shops
- Verified businesses
- People you know personally
Avoid scanning:
- Random printed QR codes pasted on walls
- QR codes sent by strangers
- Codes received on WhatsApp for “cashback”
Step 6: Turn On App Lock and Screen Lock
Security apps help prevent unauthorized access.
Recommended Locks
- UPI app lock (built-in)
- Phone lock (PIN, Password, Pattern)
- Fingerprint or Face ID
- Google Play Protect (for Android)
Step 7: Keep Your UPI App Updated
Updates include:
- New security features
- Bug fixes
- Fraud protection improvements
Turn on automatic updates.
Step 8: Avoid Using Public Wi-Fi for Payments
Public networks are unsafe.
Always prefer:
- Mobile data
- Personal Wi-Fi
- Hotspot from known people
Step 9: Use Strong Passwords for Your Phone and Apps
Use a strong password combination:
- Mix of letters, numbers, and symbols
- Avoid birthdays, names, or “1234”
- Do not share it with others
Step 10: Regularly Check Your Bank Statements
Look for:
- Small unauthorized transactions
- Unknown merchant names
- Pending requests
Report suspicious activity to your bank immediately.
Advanced UPI Safety Tips (For Extra Protection)
- Disable International Usage if Not Needed
Many UPI apps now support international UPI payments. Disable if not required.
- Use a Secondary Account for Daily UPI
Keep small balance in a separate bank account for UPI.
- Set Lower Transaction Limits
Lower limits reduce risk of large losses.
- Report Fraud Immediately Using NPCI Helpline 123
Also use:
- Bank branch
- Bank customer care
- UPI app customer care
- RBI Ombudsman (last step)
UPI Frauds: Quick Comparison Table
| Scam Type | How It Works | How to Avoid |
| Fake Customer Care | Fake numbers ask for PIN | Use official numbers only |
| Request Money Scam | Fraudster sends payment request | Never enter PIN to receive money |
| QR Code Scam | Fake codes trick you into paying | Scan only trusted QR codes |
| Phishing Links | Fake links steal details | Don’t click unknown links |
| Screen-Sharing Apps | Scammer sees your phone activity | Avoid AnyDesk/TeamViewer for banking |
| Fake Cashback Offers | Used to steal money | Ignore unbelievable offers |
FAQs on UPI Safety in India
- Is UPI safe for daily use?
Yes, UPI is safe when you follow proper security practices. Most frauds happen due to human mistakes, not because of system failure.
- Can someone steal money with just my mobile number?
No. They need your UPI PIN to send money.
- What should I do if I lose money in a UPI scam?
Immediately:
- Call your bank
- Block your UPI ID
- Report to NPCI
- File a complaint at cybercrime.gov.in
- Is it safe to keep my UPI app logged in?
Yes, but keep:
- App Lock
- Phone Lock
- Screen Lock
- Can a QR code steal money from my account?
A QR code cannot pull money on its own, but it can trick you into sending money. Always verify before scanning.
- Are cashback messages from UPI apps real?
Apps give cashback, but they never ask for:
- Your PIN
- Screen sharing
- Scanning a QR code
Beware of random messages.
Conclusion
UPI is one of the safest payment systems in the world. Millions of Indians use it daily.
But scammers succeed when users lack awareness.
By following simple safety tips like:
- Never sharing your PIN
- Avoiding suspicious links
- Checking payment requests
- Scanning only trusted QR codes
- Using strong phone security
… you can easily protect yourself from fraud.
Stay alert. Stay safe. Happy digital payments!
