With the rise in digital transactions, UPI (Unified Payments Interface) has become a convenient mode of payment for many. However, this popularity also attracts fraudsters who exploit vulnerabilities in the system. To combat UPI fraud, banks and financial institutions have implemented various detection measures.
How is UPI fraud done
UPI fraud can occur through various means, including phishing, SIM swapping, malware attacks, and unauthorised access to UPI PINs. Fraudsters trick users into sharing sensitive information or gain unauthorised access to their devices to carry out fraudulent transactions.
How is payment fraud detected
Banks employ sophisticated algorithms and AI-based systems to detect unusual patterns in transactions. They monitor factors such as transaction frequency, location, device information, and spending habits to identify potentially fraudulent activities.
How does bank fraud get caught
Banks utilise a combination of manual review and automated systems to detect and investigate suspicious transactions. Additionally, customers are encouraged to report any unauthorised transactions promptly to their bank for investigation.
Common UPI frauds:
- Phishing attacks: Fraudsters trick you into revealing your UPI PIN or OTP (One-Time Password) through fake calls, messages, or emails pretending to be from your bank or a trusted source. They might lure you with fake refunds, rewards, or urgent account updates.
- QR code scams: Malicious QR codes can be displayed online or even physically printed. Scanning them could initiate a payment to the fraudster's account instead of the intended recipient.
- Fake Apps: Downloaded from unreliable sources, these apps impersonate legitimate UPI apps and steal your login credentials or trick you into authorising fraudulent transactions.
- Payment requests via social engineering: Fraudsters might pose as sellers online or reach out through social media, requesting a payment via UPI for a fictitious product or service.
Staying safe with UPI:
- Guard your PIN: Never share your UPI PIN with anyone, not even bank officials. It is your secret key, just like your ATM PIN.
- Verify before you pay: Double-check the recipient's name and UPI ID before authorising any transaction. Do not rely solely on nicknames or avatars.
- Use trusted Apps: Download your UPI app only from official app stores (Google Play Store or Apple App Store).
- Be wary of links and requests: Do not click on suspicious links or accept unsolicited payment requests. If unsure, verify directly with the intended recipient through a trusted channel.
- Secure your phone: Keep your phone's software updated and use a strong screen lock to prevent unauthorised access.
- Report unusual activity: If you suspect fraudulent activity, immediately report it to your bank and the UPI app provider.
Bajaj Pay UPI and Bajaj Pay Wallet have revolutionised digital payments in India. They do so by offering a streamlined and efficient platform for all your financial transactions. Bajaj Pay UPI enables quick and secure payments, allowing users to transfer money, pay bills, and shop online effortlessly. Bajaj Pay Wallet complements this by providing a versatile digital wallet solution that ensures safe and convenient transactions. This can be used for a wide range of services, from mobile recharges to utility payments. Together, these platforms enhance the ease of managing finances digitally.
Conclusion
While UPI offers convenience, users must remain vigilant to protect themselves from fraud. By understanding common fraud schemes and staying informed about security measures, individuals can minimise the risk of UPI fraud. Utilising secure platforms like the Bajaj Finserv BBPS platform (Bharat Bill Payment System) can also add an extra layer of security to your digital transactions.
