India’s digital payment system has grown quickly, with UPI (Unified Payments Interface) leading the charge by enabling seamless, real-time transactions and revolutionising the way individuals and businesses manage money. In January 2025, UPI processed 16.99 billion transactions worth ₹23.48 lakh crore. However, as it becomes more popular, the risk of frauds also increases. UPI fraud cases went up by 85% in 2023-24, with over 13 lakh cases and more than ₹1,000 crore lost. Considering the situation, keeping your business safe from UPI fraud is essential.
In this blog, we’ll go over some simple and effective ways to protect your business and build trust with your customers.
How UPI Scams Work: A Quick Overview
A UPI scam happens when fraudsters trick you into making payments or sharing sensitive details like your UPI PIN, passwords, or OTPs. These can be in the form of fake payment requests, phishing links, or false offers. Both individuals and businesses can be targeted, with scammers aiming to steal money or access your banking information.
UPI scammers often pretend to be bank or support staff and ask for details like your name or phone number. They claim there’s an issue with your UPI app or payment. Then, they trick you into entering your PIN or downloading a harmful app that lets them control your phone. Once they have access, they steal your money.
In short, the UPI fraud works by fooling you into trusting them. They talk nicely, confuse you, make you hurry, and use tricks to access your PIN, OTP, or phone. Once they get control, they steal your money.
Top UPI Scam Techniques
Here are some common UPI scams you might encounter:
- Fake Seller Orders: Scammers pretend to be customers and ask you to send a product, claiming they’ve paid with UPI. After the item is sent, they don’t make any payment, leaving you without your product or money.
- Impersonating a Buyer or Seller: Scammers create fake UPI handles to pretend they are a buyer or another seller. They trick you into sending money or products without receiving any payment in return.
- Phishing Scams: Businesses receive fake links that appear to be from trusted sources. Clicking these links can lead to requests for UPI PINs or OTPs, resulting in unauthorised access to business accounts.
- Fake Payment Screenshots: Scammers send fake screenshots of a payment. You ship the product based on this, but no actual payment is made.
- UPI Collect Request Scams: Scammers send fake requests for a refund or transaction reversal. When you enter your UPI PIN, money is taken from your account and sent to them.
- Screen Sharing Apps: Fraudsters may ask you to install apps like AnyDesk. These apps give them access to your phone and UPI details, letting them steal money from your account.
- Fake QR Codes: Scammers convince business owners or staff to install remote access apps (like AnyDesk), gaining control over devices and UPI apps to perform QR code payments.
- Malware on Your Device: If you download harmful apps or click on suspicious links, malware can be installed. This records your UPI PIN and banking details, letting scammers steal your money.
- Deceptive UPI Handles on Social Media: Fraudsters create fake UPI handles that look like official customer support or help channels. They target users who may have issues with their UPI apps and trick them into providing personal details or verifying their accounts. This leads to money being stolen directly from their bank accounts.
The Ultimate Guide to Preventing UPI Frauds for Businesses
UPI (Unified Payments Interface) is a popular way for businesses to accept payments. However, like with any online system, fraudsters try to take advantage of it. Here’s how to protect your business from UPI Frauds.
- Teach Your Team and Customers: Inform everyone about common scams like fake payment requests. The more they know, the less likely they will fall for tricks.
- Never Share Sensitive Information: Never share your UPI PIN, OTP, or banking details, especially over the phone. Real banks won’t ask for this.
- Use Safe Payment Systems: Only use trusted payment systems. Avoid unverified apps that could be unsafe.
- Check Transactions Regularly: Keep track of payments. If something looks off, act quickly.
- Use Two-Factor Authentication (2FA): 2FA adds extra security, making it harder for fraudsters to steal your information.
- Have a Clear Payment Process: Ensure payment instructions are simple and clear for customers.
- Don’t Trust Random Requests: Always verify who’s asking for money and ensure they’re legitimate.
- Use Verified QR Codes: Only use verified QR codes for payments to avoid fraud.
- Avoid Screen-Sharing Apps: Don’t let strangers control your device using screen-sharing apps.
- Keep Customers Informed: Educate customers about UPI Frauds and how to avoid them.
- Use Fraud Detection Systems: Use fraud protection tools to spot suspicious payments.
- Secure Your Devices: Keep your devices updated and use antivirus protection.
- Verify Payment Requests: Always check if an unexpected payment request is real before proceeding.
- Report Scams Right Away: Report fraud quickly to your bank or authorities to prevent further loss.
How to Report UPI Frauds?
If you’ve fallen victim to any of the payment frauds, you must act quickly to protect yourself and your business. Here’s what you can do to report the fraud:
1. Contact Your Bank Immediately
If you realise you’ve been scammed, call your bank immediately. They can help you block your account and stop any further fraudulent transactions. Most banks have dedicated customer support for fraud-related issues.
2. Report to the UPI App Provider
If the fraud occurred via a specific UPI app, contact their support team immediately. They may be able to help you track and block fraudulent transactions.
3. Report to the Cyber Crime Portal
India has a cyber crime reporting portal where you can report scams. Visit the portal and submit all the details of the scam. You can also file a complaint through the National Cyber Crime Reporting Portal if you’ve lost money or personal information.
4. File an FIR (First Information Report)
If the fraud is significant or involves much money, file an FIR at your local police station. This is especially important for serious scams that involve personal or business financial loss.
5. Alert the Consumer Helpline
You can also contact the National Consumer Helpline to report fraud and seek assistance. They guide you on how to handle such situations and take appropriate action.
6. Report to the RBI (Reserve Bank of India)
The RBI handles banking-related issues in India. If you think the scam involves a banking error or the bank’s negligence, you can report the issue to them.
7. Inform Your Customers
If your business was targeted, it’s a good idea to notify your customers about the scam. This will help prevent further victims and keep them alert.
8. Monitor Your Accounts
After reporting the UPI fraud, monitor your bank and UPI accounts for any other suspicious activity. Continue checking your transactions regularly until you are sure no further fraud is happening.
Using Shiprocket Checkout to Create a Safer UPI Transaction Flow
When customers pay with UPI, the process must be quick and safe. Shiprocket Checkout makes UPI payments easier and more secure for your business and customers.
With just one click, customers don’t need to fill out long forms, which saves time and avoids mistakes. Their address is already filled in, making the process even faster.
The platform offers different payment options, so customers can pick the one that works best for them. It also keeps payments secure, protecting against fraud. Plus, Shiprocket Checkout gives you helpful insights into customer behaviour, helping you improve your checkout process.
The system shows precise delivery dates, reducing returns and delivery issues. Setting it up is easy, and you don’t need any coding skills. You can block risky orders and reduce Cash on Delivery problems. In short, Shiprocket Checkout makes the payment process smooth, secure, and simple for everyone.
Conclusion
To protect your business from UPI fraud, staying informed and taking the proper precautions are essential. Educate your team and customers about common scams so they can recognise potential threats. Ensure your payment process is clear and simple, reducing the risk of errors. Regularly monitor transactions and look out for any suspicious activity. By being cautious and proactive, you can safeguard your business, build customer trust, and create a safer transaction environment. This will help keep both your business and your customers secure.
