One of the biggest digital payment ecosystems in the world is now found in India. Millions of people’s daily transactions have been revolutionized by wallets, quick bank transfers, QR payments, and the Unified Payments Interface (UPI).
However, fraudsters now find digital payments to be an appealing target due to their quick influx.
According to government data, there has been a significant increase in UPI fraud instances in recent years. In FY2023–2024, 13.42 lakh cases with losses of Rs 1,087 crore were reported; in FY2024–2025, there were 12.64 lakh cases with losses of Rs 981 crore. Incidents of cybercrime have also increased nationwide, from over 10.29 lakh in 2022 to over 22.68 lakh in 2024 and then to about 28 lakhs in 2025.
1. Fraudulent UPI Collect Requests
One of the most prevalent frauds in India right now is this one. In order to get money such as a refund, rebate, or payment confirmation, fraudsters issue a UPI collect request. The transaction actually transfers funds to the fraudster when the victim enters the UPI PIN.
Remember that a UPI PIN may only be used to transmit money; it cannot be used to receive money.
2. Payment Scam Using QR Codes
Scammers send QR codes with a claim that they must:
Get a reimbursement
Get cashback
Confirm a payment
Instead of getting money when scanned, the QR code actually initiates a payment request.
3. Fraudulent Traffic Challan Scheme
Vehicle owners are the target of this quickly expanding fraud. Claiming that a traffic challan is pending, scammers send SMS or WhatsApp messages requesting quick payment via a link. Frequently, the link installs malicious APK files that allow fraudsters to access the victim’s banking and phone apps.
Reminder: Only official.gov.in portals or government apps should be used to verify traffic challans.
4. Phishing Links (Fake Account Block Alerts and KYC)
Fraudsters send messages like these while posing as banks or payment apps:
“Your KYC is no longer valid.”
“We’ll block your bank account.”
Victims are sent to fraudulent websites intended to steal OTPs, login passwords, or card information.
5. Fraudulent Remote Access Apps
Victims are duped into downloading screen-sharing programs like AnyDesk TeamViewer. Once installed, fraudsters can view the phone screen and steal private information such as bank passwords and OTPs.
6. Fake Payment Screenshot Fraud
Merchants are the primary target of this scam. Fraudsters replicate successful UPI transactions by displaying fraudulent screenshots of payment confirmations or using fake payment apps. Before realizing that no payment has been made, merchants release products or services.
7. The Scam of Digital Arrest
This is one of India’s high-rate growing scams. Fraudsters pretend to be government, police, or CBI agents and accuse the victim of committing a crime. Victims are forced into sending money for “verification” or “legal settlement” after being threatened with arrest. No law enforcement agency uses video calls to conduct investigations and collect payment, authorities have warned.
8. Fraudulent Customer Service Scheme
On the internet, scammers’ post fictitious customer service numbers. When victims unintentionally call these numbers in search of assistance, they are instructed to Install apps, share OTPs, and supply card information.
9. Fraudulent SIM Swap
A replica SIM card connected to the victim’s phone number is obtained by scammers. They are able to access banking apps and intercept OTPs as a result. SIM swaps have been used by thieves in recent occasions to conduct unauthorized bank and card transactions.
10. Refund/Reversal Fraud
Victims are requested to repay money that was inadvertently sent to their account. The appearance of deposits is created by fake SMS alerts or notifications. In one documented instance, a senior citizen approved “refund” transactions that really debited his account, resulting in a loss of almost Rs 5.5 lakh.
