Essential Practices for Safe and Secure UPI Transactions

3 June, 2024

Synopsis

• UPI scams involve fake QR codes, deceptive handles and phishing.

• Verify recipient details before confirming the UPI transaction.

• Monitor your UPI activity and report any fraudulent transactions to the bank.
  
  

In the digital era, the Unified Payments Interface (UPI) has revolutionised banking transactions in India, offering unparalleled ease and efficiency. However, this convenience is not without its risks. The rise in UPI transactions has been accompanied by an increase in UPI scams, emphasising the need for stringent secure tips and practices. This article aims to equip you with knowledge and best practices to ensure secure UPI banking transactions and safeguard against UPI banking scams.

What are UPI Scams?

UPI scams often involve phishing, unauthorised auto-debit transactions, and deceptive UPI handles. Scammers may impersonate bank officials or use fraudulent collect requests to access your banking information. Awareness of these tactics is the first step in prevention.

What are the Common Types of UPI Fraud?

Common UPI frauds include:

• Fake UPI Payments
  
  Fraudsters will generate a fake UPI QR code that will redirect you to malicious apps or phishing websites, where your sensitive information may be compromised.
  
  

• Voice Phishing
  
  Voice phishing or vishing is a type of cyberattack where scammers call you pretending to be bank representatives. They provide false information and a sense of urgency to obtain UPI details and PINs.
  
  

• Screen Monitoring Scams
  
  Cybercriminals may find a way to install screen monitoring apps on your phone. They use these apps to record your personal and banking details without your knowledge.
  
  

• Collect Request
  
  Fraudsters may send a collect request via UPI and claim payments for debit reversal or refunds. They’ll use tactics to pressure you into making the payments.
  
  

• Impersonation
  
  Fraudsters may disguise themselves as genuine sellers. When you approach them for a product or service, they will take the money and not deliver the product.
  
  

• Misleading UPI Handles
  
  Fraudsters employ enticing offers and promotions to lure individuals to make payments to deceitful UPI IDs
  
  

What are the Best Practices for Secure UPI Transactions?

Keep the following things in mind when making UPI transactions:

• Use Verified Apps and Secure Gateways
  
  Ensure you're transacting through secure and trusted UPI apps, available from official sources. Check the payment gateway's reputation and security measures before conducting transactions.
  
  

• Update and Secure Your Devices
  
  Keep your mobile device and UPI app updated with the latest security patches. Software updates patch previously prevalent security risks.
  
  

• Opt for Two-factor Authentication (2FA)
  
  Implementing 2FA for login and transactions adds an extra layer of security, validating the authenticity of every transaction. 2FA uses two different ways to prove it is indeed you logging into your account. Along with your standard PIN or password, you can set an additional factor for authentication.
  
  

• Strong Passwords and PINs
  
  Use complex passwords and PINs, avoiding easy-to-guess combinations like birthdays or phone numbers. Regularly change these credentials to enhance security.
  
  

• Regular Transaction Monitoring
  
  Keep a close eye on your transaction history. Promptly reporting any unauthorised transactions can prevent further misuse.
  
  

• Verify Recipient Details
  
  Always double-check the UPI ID or account number of the recipient before confirming any transaction.
  
  

• Beware of Phishing and Fraudulent Calls
  
  Be cautious of unsolicited requests, suspicious links, or calls asking for sensitive information. Banks never ask for personal details like OTP or PIN over the phone.
  
  

While UPI offers an efficient platform for digital transactions, it's imperative to stay vigilant against potential risks. By following these best practices, users and banks can significantly minimise the risk of UPI banking scams.

Join Vigil Army, where Vigil Aunty will decode various frauds and give people a heads-up on the dos and don’ts of combating frauds online. To join the Vigil Army, send ‘Hi’ to her via WhatsApp number: 7290030000.

Disclaimer: *Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.