6 Tips To Save Yourself From UPI Frauds

United Payment Interface or UPI is a widely used payment system operable around the globe by billions of people. It is an impressive concept that allows a myriad of transactions of multiple bank accounts with a single application inside your phone, you just need to create a virtual address or a UPI ID in a particular app which will allow you to link your bank account for fast payments and caters to instant, safe and secure transfer of funds between different bank accounts at a specific platform. 

It is a convenient, robust and legitimate system that makes the payment process a piece of cake for you as easy as sending a message to anyone in a second which eventually saves your time and effort to explore any payment solution with no concerns over remembering your important account details every time for making any payment.

How and when did it originate in India?

In India, UPI has seen tremendous growth in this digital era. From its official launch in 2016 for public use, it exponentially became the world’s largest payment market with more than 25.5 bn annual transactions in 2020, more than 38 bn UPI transactions amounting to Rs.73 lakh were conducted and 100 million transactions per day. 

NPCI (National Payment Corporation) and RBI are the regulating bodies of UPI. RBI in 2011, researched and found that in India only 6 non-cash transactions happen every year per individual while 10 mn retailers accept card-based payments, and 14.5 cr families have no access to any form of banking. Keeping in mind the demand, scope and with a motive of tackling and tapping the corruption and black money, RBI promulgated and proposed a system to integrate all payments sources available in the country and make them uniform for retail payments to be used in the Indian market.

As the world is changing rapidly, more innovation and technology are coming on the way, and solutions and findings are becoming technologically unbridled, having both advantages and disadvantages.

Nowadays, people are highly engaging themselves with tech-related kinds of stuff and they are more confined to doing their tasks digitally so an increasing number of digital payments have been witnessed through UPIs, galvanizing more consumers and retailers to bring their presence into it.
Despite all the security measures, UPI also has some loopholes in it such as transactions that can be vulnerable to certain frauds and scams.

• Potential risks involved in payments through UPIs
• Unauthorized and illegal ways of scamming the public through providing fake links
• Misuse of collected information through unverified platforms
• Asking OTPs, passwords, and important credentials by pretending as bank officials or hiding identities to scam people.
• Tempting the public with fake lotteries, rewards, and gifts to provoke them to click fake links or gather important data from the public.
• Fake UPI apps and websites out there are some of the frauds witnessed by people worldwide.

So as we have mulled over the root cause of fraud let’s talk about the solutions or tips to prevent yourself from these types of UPI frauds
Below is the list of 6 panacea methods as a precaution you can implement to be safe and secure.

1. ENCRYPTION is the Key to Your Safety

The basic precautions which you have to keep in mind while you are setting up the UPI process through any app or website are that you have to be sure-footed while deciding your password, PINs, Or MPINs. More the strong password is higher will be your safety. If you are using a UPI payment system on any app then make sure to enrich it with full encryption and to enhance the level of security you can also encrypt your device too with a pattern or pin. Because if a device is encrypted, all photo apps, music files, videos, personal data will only be accessible with a unique password which will act as a double or can say Z+ security for your device.

2. Say a Big NO to Anyone Who Asks for Your PIN

Always remember that no PIN or Password is required to receive money from any other person or a party, whosoever asks for it while initiating payment will be intriguingly wanted to fraud you.

3. Be Wise to Choose a TRUSTED Source

Never download unverified and unauthorized apps or websites. These apps not only scam you but also become a medium to transfer your confidential data into the wrong hands. In India, BHIM UPI is an authorized and legitimate app for initiating digital transactions but there are many fake counterfeit apps also available out there to scam you. Always choose and recognize the best and most trusted platform.

4. Keep an EYE Over Your Bank Balance

If you are involved in any type of activity that includes selling and purchasing and doing day-to-day transactions which involve the transfer of money to any third party or receiving the money from any third party then make sure you are dealing with known sources and keep a constant check on your receipts and bank statements, alert you bank immediately if you find something fishy.

5. Be More VIGILANT

You should be vigilant enough to recognize what is gold and what is gold-plated.

Sometimes, fraudsters fake out their identity as bank officials or representatives who try to gather confidential information. To be more legit, they ask some verification questions like your account number, date of birth, name, or mobile number in the name of updating your information on their bank server and once they convince the victim, they proceed to ask for more confidential details. You have to block or report these types of contacts from your call list.

6. Follow Up Safe PRACTISES

Some of the things you must take care of :

• Use authentic networks and wifi services 
• Do not dare to click suspicious links, sites, or advertisements that can carry malicious data
• Unsubscribe and put spamming emails which constantly spam into the spam folder of your emails
• Follow all security standards for every particular app you are using for UPI transactions.