Unified Payment Interface or UPI is one of the most preferred modes of payment for cashless translation and online payments. The payment method works across various financial bodies with multiple stakeholders. The ease and effectiveness of payments make UPI a popular choice. With popularity, the chances of frauds and scams also increase. The UPI ecosystem is no different. Several scams involving UPI users have come to the fore in the last few years. In such a situation, the same ease of payment becomes more of a curse than a boon. However, there are certain checks and balances to reduce the chances of fraud.
The user also needs to keep certain factors in mind while using UPI to make payments or receive money.
Five ways in which you can avoid fraud on UPI
1. Unknown identities, beware of numbers
If you come across an unfamiliar number or even an identity that you suspect, it is better to stay away from any conversation. You should be especially careful with phone numbers shared on open web sources. For example, phone numbers of particular food and drink stores. It is always best practice to double-check the identity of the individual before proceeding with the transaction. th
2. Never enter a PIN to receive money
One of the most frequent complaints of fraud can be traced back to this one factor. The bank will never ask for your PIN to get the money. Fraudsters try to create a sense of urgency by promising to send money. They eventually ask the receiver to enter their PIN to accept the money. This never happens and in all cases, the user loses his money if he falls into this trap.
3. Random Payment Request
Most UPI applications have a spam filter that tracks payment requests from certain UPI IDs. You will be warned if any such identification is exposed. The warning should be a big red flag for you. Proceed with the transaction only if you are 100% sure that the person on the other end is not a fraud. You will get the option to ‘Pay’ or ‘Reject’. You should ‘reject’ at the slightest doubt. If you click on the ‘Pay’ option, no matter what the circumstances, you will never receive the money.
4. Fake UPI Application
There were a lot of instances of card skimming in the era of ATM card machines. The practice of recording your card details through a counterfeit machine mounted on top of the original card. Similarly, fake UPI apps try to grab your details on the pretext of making payments or receiving them through UPI.
Such apps are usually designed to look similar to the original bank app and will be readily available for download. If you accidentally download and install the fake app, it will share your sensitive data with fraudsters which will allow them to steal money from your account. An advisory by Citibank claims that users should beware of fake apps like Modi BHIM, BHIM Payment-UPI Guide, BHIM Modi App, BHIM Banking Guide etc.
5. Some Basics You Must Remember
Never share your PIN with strangers.
Have anti-virus and biometric recognition software installed.
Never open emails or links from unknown sources.
-Keep your details updated with your bank.
-Only use secure WiFi connections that you trust and do not open.
– Track your financial transactions and bank account details, and track suspicious behavior on your account.
If you find anything unusual, alert your bank immediately.
UPI Fraud After: Don’t Make These Stupid Mistakes While Making Online Payments First appeared on BGR India.