Learn about UPI frauds and scams in 2024

Learn about UPI frauds and scams in 2024

UPI in India is popular and commonly used by many people to make cashless transaction. The transaction has reached over 40% value of transactions and above 50 per cent for volume of UPI trades in 2023 and FY24 so far. Transaction worth ₹18.41-lakh crore were processed that is higher than the previous record of ₹18.23-lakh crore in December 2023. But there are things to Learn about UPI frauds and scams in 2024.

It is also important to know that UPI frauds in India are rising due to rise of Digital transaction and illegal loan apps. The mode of transaction is becoming more digital, and UPI scams are expanding. As with every online transaction, there is always the chance of finding a fake UPI. It is important to take precautions and ensure that your UPI transaction is safe and secure. 

In this blog you can about UPI frauds and scams in 2024.Know how to secure your account and avoid UPI frauds. 

 What are UPI Frauds?

Unified Payments Interface (UPI) fraud refers to the misuse or exploitation of the UPI digital payment system to illegally obtain funds or sensitive financial information from victims.  

In simple terms, UPI fraud is an unlawful act that takes advantage of the UPI platform to commit financial crimes, such as unauthorized transactions, fund theft, or the obtaining of personal and banking details.  

What Are common UPI Frauds?  

Common UPI frauds can occur when a scammer accesses your UPI account or when you receive a false transaction request on your device. It is essential to know the safety precautions that can help you stay safe when using digital transactions.  


To obtain your personal information in UPI, Fraudsters create fake websites, SMS messages, or emails that appear to be from Reliable sources like banks or payment providers to make the user reveal their UPI Pin, account details, and other sensitive information.

Fraud Sellers:  

When a user plans to purchase a product online, scammers place phone numbers on their business listing sites and ask for payment for the product through UPI transactions. In these cases, the receiver does not receive the product, but money gets deducted. This may result in a hacking chance on your UPI account.  

Fraud through unauthorized app:  

Apps that are not RBI-registered may not be authorized and provide a higher risk of UPI frauds. Zap Money is an approved and RBI-registered app. A person with a good credit score can obtain an instant personal loan from Zap Money at a reasonable interest rate and with complete transparency. Downloading authorized software can help you avoid having your personal information collected by scammers.  

UPI app cloning:

Scammers create phone UPI clone apps to trick users into making fake UPI payments. This scene can expose your personal information, such as account details, UPI security PIN, and other sensitive information to scammers.  

Social engineering:  

Fraudsters use a variety of social engineering approaches, such as imitating bank authorities or technical support workers, to trick users into disclosing personal UPI information or providing unauthorized access to their devices.  

SIM swap fraud:  

Fraudsters illegally get a duplicate SIM card linked to the victim’s phone number, allowing them to skip two-factor verification and gain access to the UPI account.  

Tips to UPI Frauds Prevention:  

Today, scams cannot be prevented, but they can be avoided by taking important safeguards.  

Secure your sensitive information:  

  • It is important to create a strong, unique UPI pin and change it regularly.  
  • Never share UPI pin and any OTP related to banks with anyone  
  • Avoid creating an easy PIN or password based on your date of birth or number sequence.  

Verify Authenticity:  

  • Be cautious with scammers, who try to phone or send SMS, or emails to users asking for financial information.  
  • Try to install an authorized app like Zap Money before entering UPI transactions.  
  • Double-check the payment recipient’s information, especially for large transactions.  

Report Fraud Promptly :

  • If you suspect fraudulent activity, immediately notify your bank, UPI service provider, and the appropriate authorities.  
  • Provide thorough details on the incident to help with the investigation and recovery process.  

Use Secure Devices and Networks:

  • Try to keep your devices like smartphones, tablets, or systems updated with the latest security and antivirus software to prevent scamming  
  • Avoid using public or unsecured Wi-Fi networks for sensitive financial transactions.  


In this digital age, the expansion of digital transactions has increased fraud and financial danger. The best way to avoid fraud is to avoid strangers who ask for confidential data. Stay aware, cautious, and safeguard your hard-earned money in the digital age. Check out Zap Money for the simplest way to get an instant personal loan.

Also Read:

Spotting the red flags in the Illegal loan apps 


What is the full form of UPI?  

The full form for UPI is the Unified Payments Interface. Through UPI, we can transfer money digitally.  

Can my UPI ID be hacked?  

If you fall victim to these frauds, your UPI ID can be hacked through phishing or by fraudulent sellers.

Can someone hack my UPI ID?  

UPI IDs can be hacked by scammers through Fake Calling, UPI App Cloning, and Fraud Sellers. The best way to avoid fraud is to avoid strangers who ask for confidential data. 

How to get money back from a wrong UPI transaction?  

It is possible to get money back from a wrong UPI transaction by contacting the support team of your UPI app. 

Hariharan Ravichandran

Understanding the ever-changing environment of money may be a difficult experience.I'm Hariharan, a seasoned finance explorer and blogger. I am right there with you, beginning on this journey of financial enlightenment as a fellow traveler.


The ZapMoney app makes personal finance easy, accessible, and affordable. The App is available on Google Play Store and App Store for download, allowing you to sign up and access easy personal loans. ZapMoney is powered by Monexo Fintech Private Limited which is a registered NBFC-P2P.
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