Scams through UPI

The rapid advancement of technology has provided us with the facility of online banking. This method has made financial transactions seamless and hassle-free but the advancements have also led to an increase in cyber-fraud cases.

Transactions through UPI are one of the most convenient online transaction methods at present. Transactions through this mode has become hugely popular among all age groups, and almost every bank allows its users to link accounts with UPI payment methods. So, popularity enhances the chances of hacking. You must have heard about how a person requests an OTP over the phone, and as soon as they receive it, the money from the victim’s account is lost. Now, as per the latest reports, the fraudsters have discovered yet another way that is even more dangerous. A recent incident highlights that scammers don’t even need an OTP.

The scamsters can use UPI to empty your bank account without OTP. Here are some of the ways they do it:

· Phishing attacks: Scammers send emails or text messages that appear to be from a legitimate source, such as your bank or a payment processor. The message will often contain a link that, when clicked, will take you to a fake website that looks like the real website. Once you enter your UPI PIN on the fake website, the scammers can use it to transfer money out of your account.

· Vishing attacks: Scammers make phone calls that appear to be from a legitimate source, such as your bank or a payment processor. The caller will often say that there is a problem with your account and that you need to provide them with your UPI PIN to fix it. Once you give them your PIN, they can use it to transfer money out of your account.

· Man-in-the-middle attacks: Scammers can use a technique called "man-in-the-middle" to intercept your UPI payments. This is when they set up a fake Wi-Fi network that looks like a legitimate network, such as the Wi-Fi network at a coffee shop or airport. When you connect to the fake Wi-Fi network, the scammers can see all of the traffic that you send and receive, including your UPI PIN.

In this new method, your UPI, which is linked to your bank account, is targeted. Recently, a 25-year-old man ordered a mobile phone from a shopping website for Rs 30,000. The phone was about to be delivered on May 17 but he received a call on May 16 from a man identifying himself as a customer service representative. He told the man about his product and asked him to confirm his location.

Even though he had already entered his address on the online store, the man continued talking after the scammer asked him to verify the address received in a link. The link opened a UPI payment option. The scammer asked the man to pay Rs 5 to validate the address. The man then got conscious and confronted him as a scammer rather than a customer service representative. The man claimed that he had a video of the incident. The scammer then asked him to remove the video and eventually disconnected the call. This saved the man from losing his money.

In case you get a suspicious call, you should disconnect it right away and report the number. By protecting yourself like this, you will be able to help others as well.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA