How to Identify and Avoid Digital Payment Frauds

Digital payments have become increasingly popular in India in recent years. However, this convenience has also made it a target for fraudsters. There are a number of different types of digital payment frauds, but some of the most common include:

• UPI fraud: In a UPI fraud, the fraudster will call you and claim to be from a legitimate company, such as a bank or payment service provider. They may say that they need to verify your UPI PIN in order to process a payment. If you give them your PIN, they can use it to transfer money out of your account.
• KYC fraud: In a KYC fraud, the fraudster will send you a text message or email claiming that your bank account has been frozen due to non-compliance with KYC regulations. They may ask you to provide your personal information, such as your name, address, and date of birth, in order to "reactivate" your account. If you provide this information, the fraudster can use it to steal your identity or commit other crimes.
• Remote access fraud: In a remote access fraud, the fraudster will send you a link to a website or app that appears to be from a legitimate company. Once you click on the link, the fraudster will be able to gain access to your computer or phone. They can then use this access to steal your personal information or install malware on your device.

Here are some tips for identifying and avoiding digital payment frauds:

• Never give out your UPI PIN to anyone, not even if they claim to be from a legitimate company.
• Be suspicious of any text messages or emails that ask for your personal information. If you are not sure whether a message is legitimate, do not click on any links or open any attachments. Instead, contact the company it claims to be from directly.
• Only download apps from official app stores. Do not download apps from third-party websites or app stores.
• Keep your software up to date. Software updates often include security patches that can help to protect you from fraudsters.
• Use a strong password manager to create and store strong passwords for all of your online accounts.
• Be careful about what information you share on social media. Fraudsters can use information that you share on social media to target you with scams.

Here are some recent digital payment fraud incidents that have been reported in Indian news:

• In January 2023, a UPI fraud targeting Indian Paytm users was reported. The fraudsters sent text messages to Paytm users claiming that they had won a prize. The text messages included a link that, when clicked, would take the victim to a fake Paytm website. Once the victim entered their UPI PIN on the fake website, the fraudsters were able to steal their money.
• In February 2023, a KYC fraud targeting Indian SBI bank customers was reported. The fraudsters sent text messages to SBI bank customers claiming that their account had been frozen due to non-compliance with KYC regulations. The text messages included a link that, when clicked, would take the victim to a fake SBI website. Once the victim provided their personal information on the fake website, the fraudsters were able to steal their identity.
• In March 2023, a remote access fraud targeting Indian Airtel customers was reported. The fraudsters sent text messages to Airtel customers claiming that they were from Airtel customer support. The text messages included a link that, when clicked, would take the victim to a fake Airtel website. Once the victim clicked on the link, the fraudsters were able to gain access to the victim's computer and steal their personal information.

These are just a few examples of the many digital payment frauds that have been reported in India in recent years. It is important to be aware of the threat of digital payment frauds and to take steps to protect yourself. By following the tips above, you can help to keep your money safe from fraudsters.