UPI & Payment App Fraud

What is it?

UPI and Payment App Fraud occurs when a scammer manipulates you into entering your secret PIN under the false pretense that you are receiving money. In reality, entering your PIN always authorizes a deduction from your account.

How it works (The Teardown)

1. The Hook: You list an item for sale online (e.g., on Facebook Marketplace or Craigslist).
2. The “Buyer”: A scammer contacts you immediately, agreeing to your price without negotiation.
3. The Trick: They claim they cannot pay in cash and insist on sending money via a payment app (like Google Pay, PhonePe, or Venmo).
4. The Trap: They send you a “Payment Request” link. They tell you over the phone, “Just click the link and enter your PIN to accept the money into your account.”
5. The Reality: The PIN is only used to send money. By entering it, you are authorizing the transfer of funds to the scammer.

How to identify this scam

• Speed: The buyer is overly eager and refuses to meet in person or pay cash.
• The “Receive Money” lie: They insist that you must enter your PIN to receive a payment. This is never true.

How to avoid it

• Remember the Golden Rule: You NEVER need to enter your PIN to receive money. Your PIN is strictly for sending money or checking your balance.
• Ignore requests: Decline any incoming payment requests from unknown individuals.

What to do if you are affected

1. Immediately contact your bank to freeze your account and dispute the transaction.
2. Report the fraudulent account directly within the payment app.
3. File a complaint with your local cybercrime authority.

Stay Safe: If anyone ever asks you to enter your PIN to get paid, immediately block them. It is a scam 100% of the time.