Business: In September 2024, a gang of 13 people from Rajasthan defrauded a famous electronics chain in Hyderabad of about Rs 4 crore. What was the method? The gang members would go to the shop, choose expensive fridges and TVs, and take photographs of the QR codes. His associates from Rajasthan would make the actual payment. They would get the goods, then file a chargeback complaint in the bank and get the money back and also keep the goods. Police caught everyone, Rs 1.72 lakh cash and goods worth Rs 50 lakh were recovered.

The glory of UPI
UPI did wonders. More than 20.7 billion transactions, payment of Rs 27 lakh crore in October-2025. According to the latest data, transactions worth more than Rs 1 lakh crore were made through UPI on October 18 alone. About 675 million transactions are taking place every day, i.e. half of the world’s digital payments are taking place in India.

and its darkness
The government recently told the Parliament that-

• From 2022-23 to 2023-24, fraud cases increased by a full 85 percent – ​​meaning more than double.
• Money fraud increased by 89.7 percent – ​​meaning fraudsters are now targeting larger payments.

Now let’s talk about 2024-25
6.32 lakh cases were registered from April to September, 2024. Rs 485 crores were lost.
If this pace continues, a record for UPI fraud will be made this year. That means, at the same pace with which the use of UPI is increasing, frauds are also increasing at the same pace. It is noteworthy that this figure is of the fraud that has been complained about. After including those that were not reported, the figure could be much larger.

Do you know: New rules have been made to prevent fraud in UPI.
Major action on collect requests – From October 2025, NPCI has completely stopped peer-to-peer (ie between two people) collect requests. Earlier, collect requests used to come through messages like ‘Refund has arrived’ or ‘Do KYC’ and the money was deducted as soon as it was approved. Keep in mind, any such message is fraud. Double lock in every payment – ​​Now two-way authentication (2FA) is mandatory on every UPI transaction. Meaning, just entering the PIN will not work, biometric (fingerprint/face) or another password will also be required.

CPFIR monitoring-RBI has created Central Payments Fraud Information Registry (CPFIR). In this, every bank has to enter complete details of the fraud within 24 hours – number, UPI ID, how much money, when it happened… everything! As soon as a fraudster commits fraud, other banks immediately get alerted. This helps in curbing fraud.

New safety in UPI apps

• Warning before making payment on unknown UPI ID.
• If you send money to someone for the first time, there is a cool-down of 1-2 hours.
• Screen sharing detected and instantly blocked.
• And the most important new rule: If you complain on cybercrime.gov.in or 1930 within 3 days, then it will be your responsibility to return the entire money to Zero-Bank, even if the fraudster runs away.

How to protect yourself from fraud?

• Never disclose PIN, OTP, password to anyone.
• Check UPI ID before making payment.
• When scanning the QR, definitely check the name of the merchant.
• Install biometric lock, always keep the app updated.
• Do not click on unknown links.
• If you want to receive money, there is no need to enter your PIN – remember this.
• Never transact on public Wi-Fi.

Important to know: 10 dangerous weapons of thugs

• Wrong QR code – They send it saying ‘scan it to get money’, as soon as you scan it the money is deducted from your account.
• Fake Screenshot – Goods are taken away by showing payment, in reality not a single rupee is received.
• Phishing-vishing – Bank people, posing as police, scare people and take PIN-OTP.
• Collect request – sent in the name of refund or KYC, the money goes away as soon as it is approved.
• SIM Swap – Take OTP by cloning the SIM.
• Screen Sharing – ‘Need Help?’ Let’s install the app and check your PIN.
• Chargeback Fraud – Taking back money by showing payment failure.
• Fake Loan App – Lure of instant loan.
• Posing as a friend – send a message on WhatsApp saying ‘Mummy is ill, send money quickly’.
• The one with higher payment – ​​after sending Rs 200, it is said that he sent Rs 20,000 by mistake.

What to do if you are cheated?

• Call the bank: Freeze the account and block the UPI.
• Complain within three days on cybercrime.gov.in or dial 1930. If you report within three days, you can get the full money back.
• NPCI Portal: If the bank did not listen, then complain here.
• FIR: More than Rs 10 thousand cheated, FIR lodged with police
• RBI Ombudsman: If the bank does not hear from you within 30 days, complain on cms.rbi.org.in.