UPI and Digital Payment Frauds

The common tricks used in digital payment scams in India, why they work, and practical ways to protect yourself.

India’s Unified Payments Interface, UPI, has made digital payments fast, cheap and widespread. Its success has also attracted fraudsters. Understanding their tricks is the best protection.

Common scams

Collect request scams: a fraudster sends a “collect request” pretending it is a payment to you. Approving it with your PIN actually sends money from your account. Remember: you never need to enter your UPI PIN to receive money.
QR code scams: scanning a QR code sent by someone “to receive payment” actually initiates a payment from you.
Fake customer care numbers: fraudsters post fake helpline numbers online. When victims call, they are asked to share details or install screen-sharing apps.
Screen-sharing apps: fraudsters persuade victims to install apps that let them see the phone’s screen, including PINs and one-time passwords.
Impersonation: callers pose as bank officials, police, courier companies or relatives in trouble. So-called “digital arrest” scams, in which fraudsters pose as police on video calls and demand payment, became widespread in 2024.

Why scams work

Most frauds rely on social engineering: manipulating people through urgency, fear or the promise of money, rather than hacking systems. Fraudsters create pressure so victims act before thinking.

Protecting yourself

Never share your UPI PIN, OTP or card details with anyone.
Remember: entering a PIN always sends money; it never receives it.
Use only official apps and helpline numbers from the bank’s official website.
Do not install screen-sharing apps at a stranger’s request.
Be suspicious of urgency and offers that seem too good to be true.

The buyer who wants to pay you

You list an old phone for sale online. A "buyer" says they will pay you through UPI and sends a request, asking you to enter your PIN to "accept" the payment. Entering the PIN would transfer money from you to them. A genuine buyer simply sends money to your UPI ID; you do nothing except check your balance.

If you are defrauded

Report immediately. In India, call the national cyber fraud helpline 1930 or report on the government’s cybercrime portal, and inform your bank. Quick reporting improves the chances of freezing and recovering funds.

Accessibility and safety

Blind users of screen readers should be especially careful with unexpected payment requests, since fraudsters may rely on confusing screens. Listening carefully to whether a screen says “pay” or “receive” is essential.

Thinking only careless people get scammed

Fraudsters are skilled at creating pressure and trust, and they target everyone, including educated and experienced people. Knowing the common tricks and following fixed rules, like never sharing a PIN, is the best defence.

Key takeaways

Common UPI scams include collect requests, QR codes, fake helplines and screen-sharing apps.
Entering a UPI PIN always sends money; you never need it to receive money.
Most scams rely on social engineering using urgency and fear.
Report fraud quickly to the 1930 helpline, the cybercrime portal and your bank.