Cashback Scams In India: How To Stay Safe

With rapid adoption of UPI and digital payment apps, cashback offers have become a popular marketing tool for brands to attract buyers. Cashback rewards provide users with the chance to earn back a portion of the money they spend.

However, as these offers gain popularity, attackers are making use of tactics to trick users by luring them with fraudulent cashback offers. In this article, see how cashback scams happen and how you can protect yourself from falling victim to them.

• Always verify cashback offers directly from official apps or websites, not messages.
• Never share your UPI PIN, as it is only required for sending and not receiving money.
• Be wary of unsolicited messages with cashback links from unknown or suspicious sources.
• Report any suspicious cashback scams or fraudulent messages to authorities for investigation.

Cashback is essentially a reward system where you, the user, receive a percent of the money you spend back into your account. These offers come in many forms: bank promotions, coupons, discount codes, or even UPI-based rewards for making bill payments.
 

Typically, when you make a qualifying payment, the cashback is automatically credited to your account, either immediately or in the stipulated time frame. In most cases, no additional steps are required from your end. 

The simplicity and popularity of cashback offers make them an attractive target for scammers.

Cashback scams typically begin with a message, email, or social media post that promises a cashback reward. These messages often claim that the user has won a cashback reward and need only click a link or complete a task to claim it.

The tactics used by scammers to lure users vary, but the common element is the promise of easy money.
 

Here are some common techniques scammers use to execute cashback scams:

1. Fake links to cashback offers: Scammers often send messages containing a malicious link that directs users to a website mimicking a legitimate brand or UPI payment platform. These fake websites may look nearly identical to real ones, and once the users enter their details, including UPI PIN or bank information, scammers gain access to their accounts.
2. UPI manipulation: A more sophisticated version of the scam involves luring users with a fake cashback offer and redirecting them to a UPI payment page. Here, instead of receiving money, users unknowingly authorise a payment to the scammer.
3. Malicious apps or extensions: Some scammers create fake mobile apps or browser extensions that promise cashback rewards for installing or using them. These apps require users to link their bank accounts or provide sensitive information, which can then be used to transfer funds. 

While cashback scams are becoming more sophisticated, there are several measures you can take to protect yourself. By being vigilant and adopting hygienic digital habits, you can avoid falling into the traps set by scammers.

Here are some tips to help you stay safe:

• Never click on links or respond to messages claiming you have won a cashback offer unless you can verify the authenticity through official channels. You can do this by visiting the company website or app to check for any legitimate offers.
• Avoid clicking on links from unknown sources, especially those sent via SMS, email, or social media, as scammers often impersonate popular brands in such messages.
• Remember that you do not need to enter your UPI PIN to receive money—only to send it. If a cashback offer requires you to enter your UPI PIN, it is a scam.
• Download apps only from trusted sources like Google Play Store or Apple App Store. Avoid third-party app stores as they may host malicious apps that can steal your data.
• When redirected to a website, double-check the URL to ensure it matches the official website of the brand or platform. Scam sites often have minor changes in the URL.
• Ensure your smartphone, banking apps, and security software are up-to-date. Regular updates often include security patches that protect against new threats.
• If you receive a suspicious message or phone call, report it to the relevant authorities or the brand being impersonated. Many companies have dedicated fraud reporting channels.
   

Cashback scams in India are evolving as digital payments become more widespread, but by staying informed and cautious, you can protect yourself from these malicious schemes. Always verify the authenticity of cashback offers, safeguard your personal information, and remember that if something looks too good to be true, it probably is.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 7.30% p.a.