Fake UPI Payment Scams: How to Identify and Avoid Them

dharmendra14
2 days ago
3 min read

With the growing adoption of digital payments in India, Unified Payments Interface (UPI) has revolutionized how people transfer money. However, convenience comes at risk. A rising threat in the fintech space is fake UPI payment scams, often executed through fake payment apps designed to deceive unsuspecting users.

In this blog, we’ll explore how these scams work, how to identify them, and what you can do to stay protected.

What Are Fake UPI Payment Scams?

Fake UPI payment scams involve fraudsters tricking people—especially merchants and small business owners—into believing that a payment has been successfully made. Scammers often use fake payment apps or spoofed screenshots to simulate a successful transaction, even when no money has actually been transferred.

These scams typically happen when sellers don’t verify the receipt of funds in their actual bank account or UPI app.

What Fake Payment Apps Work

Fake payment apps are cleverly designed applications that mimic the appearance and interface of genuine UPI apps like Google Pay, PhonePe, or Paytm. These fraudulent apps can:

Generate fake payment confirmation screens.
Show bogus transaction IDs
Display SMS alerts that appear real.
Mimic UPI app logos and layouts.

Often available through unofficial sources or APK downloads, these apps are not authorised by the NPCI (National Payments Corporation of India) and have no integration with banking systems.

Common Signs of a Fake UPI Transaction

Here are the key red flags that can help you identify a fake UPI payment attempt:

No Transaction Alert in Your Bank/UPI App: Always check your UPI app or bank SMS—not just the screen shown by the buyer.
Screenshots Instead of Real-Time Transfer: Fraudsters often rely on fake screenshots instead of actually sending money.
Unusual App Interface: If the payment app doesn’t behave like the one you're used to, it might be fake.
No UPI Transaction Reference Number (UTR): Authentic transactions always have a unique UTR.
APK Installation Request: If someone asks you to download a payment app from a link instead of an official app store, it’s likely a scam.

Real-Life Example

A street vendor recently shared how a customer paid via a well-known UPI app. The screen flashed "Payment Successful," but upon checking his account, the vendor found no credit. Later, it turned out the customer used a fake payment app to generate a fake success screen. This is just one of thousands of such incidents occurring daily.

How to Stay Safe from UPI Payment Scams

Always Verify Payment: Check your bank account or UPI app for confirmation before handing over any goods or services.
Use Trusted Apps Only: Stick to official apps downloaded from the Play Store or App Store.
Never Trust Screenshots: Only real-time transaction alerts should be trusted—not images or edited confirmations.
Know the UPI UTR Code: Familiarize yourself with how UPI UTR numbers look and verify them if in doubt.
Educate Your Staff: If you run a business, train your employees to identify such scams.
Report Suspicious Apps: If you encounter a fake app, report it immediately to authorities and cybercrime portals like cybercrime.gov.in.

Final Thoughts

The rise of digital payments is a boon for India’s economy—but it also attracts digital fraudsters. As a user, merchant, or business owner, it’s essential to stay alert. Understanding how fake payment apps work and how scammers use them to trick people is your first step towards protecting your hard-earned money.

Be smart, stay updated, and never assume a payment is complete without verifying it.

Original Source