UPI Frauds: What is UPI ID, How to Prevent UPI Frauds in India?

The Unified Payments Interface, or UPI, has recently gained popularity, rendering payment cards useless. As the service grows in popularity UPI frauds in India are becoming more common. Additionally, It is critical to comprehend what UPI is, the relevance of the concerned virtual address, and how fraudsters use this system to defraud users of their funds. Nevertheless, this blog has covered the essentials of UPI, what is UPI ID, the benefits of UPI ID, how to Prevent UPI Frauds in India, and more!

What is UPI ID?

UPI has grown in popularity due to its user-friendly features. It’s a single platform that combines a multitude of financial services and features into one convenient location. All you need is a UPI ID and PIN to send and receive money. So, The UPI ID is a user-specific virtual identifier. The structure of the UPI ID is similar to that of username@bank’s initials. This allows the interface to keep track of any monetary transactions and UPI payments that a user makes with that ID. To that end, it’s also critical to understand what UPI payment is.

UPI payments cover the whole range of transactions that people typically do by using their savings accounts, net banking apps, or debit cards. It covers bill and merchant payments, as well as money transfers from one saving account to another without revealing account information.

Benefits of UPI

UPI is universal

You can use a single UPI app to transfer money between many bank accounts. All you have to do now is link your various bank accounts to your UPI-based app. Because all your bank accounts are accessible from a single location, you can make payments with any of them.

Smooth and easy to use

This simply means, that making a payment with UPI is simple.

– For paying merchants: Simply provide the merchant with your VPA and a message will appear on your smartphone. Now all you have to do is approve the payment amount and enter your PIN. The transaction is completed with the merchant.

– To transfer funds, open the UPI App and enter the four-digit passcode. Choose the payee for the payment, input the payment amount, and then enter the MPIN.

Variety of choices

You can access several bank accounts using any UPI. For example, you can access any other bank account using an Axis Bank UPI app (say, an SBI account or ICICI account). Check the ease of use, the interface, and availability of the desired virtual payment address when choosing a UPI app.

The transaction is completely free

Payments made using UPI will not charge a fee, according to Finance Minister Nirmala Sitharaman.

Instant transfer & availability 24×7

UPI allows you to make payments or transfer funds immediately 24×7. It outperforms both NEFT and IMPS. While NEFT might take up to 12 hours to complete a money transfer, IMPS registration takes at least 30 minutes. UPI, on the other hand, is available immediately.

UPI is superior to wallet

Wallets do not pay interest on the money they hold. When you use UPI, the money stays in the bank account where it was sent. As a result, you continue to earn interest on the money you keep in your bank account. That is why UPIs are preferable to wallets.

How to set up a UPI ID?

To create a UPI ID, follow these steps:

1: From the Apple App Store or Google Play Store, download a UPI-enabled app.

2: To continue, choose a preferred language.

3: Select the phone number associated with the savings account to which you want to link.

4: To authorize, enter the OTP issued to the mobile number.

5: Link the savings account by entering the essential information, such as the account number.

6: Create a PIN that will be used to authorize nearly all future UPI transactions.

After that, your account will be activated.

However, once you start utilizing your unique VPA for online transactions, you should be cautious about UPI fraud in India.

How to prevent UPI Frauds in India?

The number of UPI frauds in India is increasing alarmingly, with several incidents occurring almost every day in different regions. So, here are some tips on how to prevent UPI fraud in India.

Text messages or phone calls will not be used by the government or financial institutions to get personal information. If you suspect UPI fraud, contact your bank right once to get the e-wallet blocked. This will keep you from losing any more money.
Anyone posing as a bank official should be ignored if they send you unconfirmed communications or call you on the phone. It is also possible to send SMSes in the name of the Employee Provident Fund Organisation (EPFO) or the Insurance Regulatory and Development Authority of India (IRDAI). However, it’s worth emphasizing that they don’t send messages to users.
Install anti-virus software on your laptops and PCs to keep them safe.
Instead of searching for customer support numbers on Google, go to the official website. Scammers frequently put phone numbers on websites that look to be official or authorized but aren’t.
UPI payment apps have a great feature that notifies users when they receive a request from an anonymous account, which helps to prevent fraud. Do not ignore this warning; it could cost you thousands of rupees if you do.
Users should not accept payments from unrecognized accounts while using UPI. If you receive unidentified money requests, simply refuse them.

To prevent UPI fraud in India, follow this checklist of dos and don’ts –

Scan UPI IDs carefully

Fraudsters frequently manufacture UPI IDs that look like legitimate addresses and distribute them through a variety of methods. These IDs are usually comparable to those used in relief fundraising efforts, but they can also be used to target other groups. To avoid UPI ID frauds in India like this one, look up the actual location on the internet.

Beware of payment requests when selling

Payment requests with the prompts “Pay” and “Decline” may be received by businesspeople or online sellers on a UPI-enabled app from alleged consumers. When a fake consumer requests a vendor to click on the “Pay” option to collect a payment, this is one of the most common UPI scams.

Do not give out your UPI PIN or OTP to anyone

Scammers make use of the payment request feature in UPI-enabled apps to obtain the PIN or OTP required to complete a transaction. They make a payment request and then phone the person to request the OTP or PIN, which they claim is necessary to complete the transaction. To authorize a payment, however, the user must enter an OTP or PIN, not the other way around.

Don’t click on unsecured links or install questionable apps

UPI frauds can also be perpetrated by creating bogus websites or apps. Scammers send such links to victims by SMS, and when they click on them, they are redirected to a UPI-enabled app with a payment demand.

When opening links, make sure the lock symbol is visible. Check whether apps have been confirmed by the Google Play Store or Apple App Store in the case of apps.

Conclusion

The most advantageous method of paying is through the internet. These have become a part of our everyday lives. But, before engaging in online transactions, consumers should bear the following UPI fraud protection tips in mind. Aside from knowing what UPI is, having a good understanding of it can help people conduct transactions safely. However, they may find a novel way to persuade you to share your personal information with them. As a result, one should always take considerable precautions when making online payments. Also, please contact your card issuing bank or the closest Cybercrime Center to report the incident.

FAQs

1. What is UPI ID?

Ans: Your UPI ID (usually yourname@bankname) is an address that identifies you on UPI.

2. Can antivirus software assist avoid UPI Frauds in India?

Ans: Yes, you may protect yourself from UPI frauds in India by installing antivirus software on your laptop and desktop computers.

3. Where to report UPI Frauds complaints?

Ans: You can report UPI frauds complaint to your card issuing bank or to the closest Cybercrime Center.

4. What are the various methods for preventing UPI Frauds in India?

Ans: If a suspected UPI fraud is discovered, the e-wallet should be blocked immediately by contacting the bank. It will ensure that there are no future losses. Simultaneously, the fraud should be reported to the police or a cybercrime unit.

5. What to do when my UPI transaction was unsuccessful, yet my bank account was debited?

Ans: In the event of a failure, your money will be refunded to your account. This can take longer than anticipated. If you have not received your refund within one hour, please contact your bank’s customer service.

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