Unified Payments Interface (UPI) has made sending and receiving money super easy in India. You can pay instantly using apps like Google Pay, PhonePe, Paytm, or BHIM. But, as UPI gets more popular, scammers are finding ways to steal money. They use fake QR codes, tricky messages, and other cheats to fool people. This blog explains common UPI scams, why they’re a problem, and simple ways to keep your money safe.

Why UPI is so popular

UPI, created by the National Payments Corporation of India (NPCI), lets you transfer money between bank accounts using a mobile app. You only need a virtual payment address (VPA) or a QR code to send money. With over 500 million users and 15 billion transactions every month in 2025, UPI is a big part of daily life in India. But its ease also makes it a target for scammers.

Common UPI scams

Scammers use clever tricks to steal your money. Here are the most common ones:

1. Fake QR code scams: Scammers put fake QR codes in places like shops, restaurants, or online. When you scan these codes, money goes to the scammer’s account instead of the shop’s. For example, a fake QR code at a store could trick you into paying a fraudster.
   
   

2. Phishing scams: Phishing is when scammers send fake messages, calls, or emails pretending to be from your bank or UPI app. They trick you into sharing your OTP (one-time password), UPI PIN, or bank details. For example, a message might say your UPI account is “locked” and ask you to click a bad link.
   
   

3. Pretending to be someone else: Scammers act like someone you trust, like a bank officer or a friend, to fool you. They might send a message saying a friend needs money urgently or a bank needs your details to “fix” something. These tricks play on your trust.
   
   

4. Fake apps and malware: Downloading fake UPI apps or clicking bad links can put harmful software on your phone. This software steals your UPI PIN or bank details. For example, a fake BHIM app might look real but take your money.
   
   

5. Fake collect requests: Scammers send fake “collect requests” through UPI apps, pretending to be a shop or someone you know. If you approve these requests without checking, your money goes to the scammer. This happens when you’re in a hurry or distracted.
   
   

Why UPI scams are a big deal

The NPCI and Reserve Bank of India (RBI) say UPI scams are growing fast. In 2024, digital payment scams caused losses of over ₹2,000 crore in India, with UPI being a major target. Since UPI payments happen instantly, it’s hard to get your money back. People in small towns and villages, who may not know much about online safety, are often the biggest victims.

Real-life example: Abhishek Mishra’s story

In 2019, Abhishek Mishra, a 24-year-old manager at a staffing company in Delhi, fell victim to a UPI scam while trying to sell his window air conditioner on an online classifieds portal like OLX. He listed the AC for sale after moving to a new place. Soon, he got a call from someone claiming to be an armed forces officer stationed in Rajasthan. The caller said his son would pick up the AC and promised to pay via UPI. Abhishek checked the caller’s name on Truecaller, and it matched, so he felt safe. The scammer asked Abhishek to enter his UPI ID in his app, but instead, Abhishek was tricked into entering his UPI PIN. He received a bank message that his account was debited. The scammer claimed something went wrong and asked him to try again—twice more. By the third attempt, Abhishek realised he had been conned, losing ₹50,000 over three transactions. This case shows how scammers exploit trust and the “collect request” feature to trick users into authorising payments.

How to stay safe from UPI scams

You can protect your money by being careful and following these easy steps:

Check QR codes carefully

• Confirm the receiver: Before scanning a QR code, check the VPA or account details shown on your app. Make sure it matches the person or shop you’re paying.
  
  

• Avoid random QR codes: Don’t scan QR codes in public places or from unknown messages. Ask the shop for their VPA directly if you’re unsure.
  
  

• Use trusted apps: Only scan QR codes with official UPI apps like Google Pay, PhonePe, or BHIM.
  
  

Keep your details private

• Don’t share OTP or PIN: Banks and UPI apps never ask for your OTP, UPI PIN, or bank details over calls, texts, or emails. Ignore such requests.
  
  

• Skip suspicious links: Don’t click links in messages or emails claiming to be from your bank or UPI app.
  
  

• Use extra security: Turn on fingerprint or PIN checks in your UPI app for added safety.
  
  

Set payment limits

• Limit how much you send: Most UPI apps let you set a daily or per-payment limit. For example, keep single payments under ₹5,000 to reduce risk.
  
  

• Check limits often: Update your limits based on how you use UPI to stay safe.
  
  

Keep an eye on your payments

• Turn on alerts: Set up SMS or app notifications to know about every UPI payment instantly.
  
  

• Check your bank account: Look at your bank and UPI app records regularly to spot anything wrong.
  
  

• Update your app: Keep your UPI app updated to get the latest security fixes.
  
  

Be careful with collect requests

• Check the sender: Always verify who sent a collect request before approving it. Call or message them to confirm.
  
  

• Don’t rush: Scammers try to make you act fast. Take time to check before approving.
  
  

Keep your phone safe

• Download from safe places: Get UPI apps only from the Google Play Store or Apple App Store to avoid fake apps.
  
  

• Update your phone: Keep your phone and apps updated to block harmful software.
  
  

• Use antivirus: Install a trusted antivirus app to catch and stop bad software.
  
  

Report problems right away

• Call your bank: If you think you’ve been scammed, call your bank’s helpline or visit a branch to stop your account or UPI ID.
  
  

• Tell NPCI: Report UPI scams on NPCI’s website or call 14444.
  
  

• File a cybercrime report: Go to cybercrime.gov.in or call 1930 to report the scam.
  
  

What to do if you get scammed

If you lose money to a UPI scam, act fast:

• Contact your bank: Call your bank within 24 hours to block more payments and ask for a refund.
  
  

• Report to your UPI app: Tell your UPI app provider and NPCI about the scam.
  
  

• Report to police: File a complaint on cybercrime.gov.in or at a police station with details like transaction ID, date, and the scammer’s VPA.
  
  

• Save proof: Keep screenshots of messages, payment details, or QR codes for the police.

RBI rules say banks might refund money for unauthorised payments if you report within three days and didn’t share your PIN or OTP. But getting money back from “collect request” scams is tough because you approved the payment.

What’s your UPI safety trick?

UPI makes life so much easier, but staying one step ahead of scammers is key. By checking QR codes, keeping your OTP and PIN secret, setting payment limits, and reporting issues fast, you can keep your money safe. Got a clever trick to avoid UPI scams? Or maybe you’ve dodged a sneaky fraud attempt? 

What’s the one thing you always do to stay secure with UPI?