How Do UPI Frauds Happen And How Can We Avoid Them?

How Do UPI Frauds Happen And How Can We Avoid Them?

14 February 2024 | By INDIE

UPI frauds have become increasingly common in India, especially with the rise of digital transactions. Fraudsters often employ tactics such as UPI ID fraud, where they create fake IDs to deceive you. They prey on fear, greed and emotion to trick people into giving away their personal and financial details.

It is essential to be aware of the types of scams that exist to protect yourself from UPI frauds. Changing your UPI PIN regularly and being cautious while making transactions can help you stay safe. let's learn how you carry out a safe UPI transaction. 

Understanding UPI Frauds

UPI fraud happens when someone else uses your UPI credentials to make payments without your knowledge or consent. These frauds can occur due to various reasons, as discussed below.

Common Causes of UPI Payment Frauds 

It is essential to ensure that the links you click on are from a trusted source. Clicking on unauthorised or suspicious links can lead to security breaches, malware infections, phishing scams, and other cyber threats. 

Ways to establish authenticity: Hover over the link to see the URL or website name and check if it matches the expected destination. Alternatively, you can use a link scanner tool or antivirus software that can detect and block malicious links. 

By taking these precautionary measures, you can protect yourself and your devices from potential harm and stay safe online.

What are the Sources of UPI Fraud?

UPI frauds can occur due to various reasons, such as phishing, SIM card cloning, identity theft, illegal payment apps, and more. Here's a list of the few most common sources of UPI payment fraud - 

How to Prevent UPI Fraud?



Never share your UPI PIN
Please ensure that you keep your financial information private and do not share it with anyone.
Verify beneficiary details Before sending money, double-check the recipient’s name, UPI ID and bank details to avoid any errors or discrepancies in the transaction.
Use a strong UPI PI
When creating passwords or security questions, it is advisable to avoid using easily guessable information. This includes birthdays, anniversaries, common names and simple patterns.
Beware of phishing links
If a link appears suspicious or unfamiliar, it’s best to avoid clicking on it. Clicking on a malicious link could put your device and personal information at risk of being compromised by cybercriminals.
Report suspicious activity
Contact your IndusInd Bank or UPI app provider immediately to report fraudulent UPI transactions.


UPI frauds can cause a great deal of financial loss and inconvenience. It is essential to remain vigilant while making UPI payments to avoid UPI scams. Always remember to check the details of the recipient, keep your UPI PIN confidential, and avoid clicking on unauthorised links. By taking these precautions, you can prevent UPI payment fraud and ensure the safety of your finances. 

Switch to Secure UPI Today!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.