Introduced in 2016, the Unified Payment Interface (UPI) is a real-time system for inter- and intra-bank transactions in India. It was developed by the National Payments Corporation (NPCI) and is regulated by the Reserve Bank of India. One key benefit of UPI payments is that there is no need to carry cash or a card; instead, all payments can be made with just a few clicks.
With many advantages and increased accessibility, UPI became a household tool, drawing in millions of Indians regardless of age, social status, and wealth. Now, whether you are having a cup of tea at a tea stall or a several thousand rupee meal at a 5-star hotel, you can make your payments entirely using UPI without having to carry any physical currency.
Reports suggest India will have crossed 9 billion transactions using UPI in 2023, demonstrating unprecedented usage nationwide. However, as every coin has two sides, the number of fraudulent activities associated with UPI paymentsalso keeps increasing yearly, with records indicating nearly 55% of all digital frauds happening on UPI.
Although the ticket size of each of these scams is comparatively lower, with almost 50% being for less than ₹1000 and 48% between ₹10,000 to ₹1 lakh, it is essential to keep security in mind. This is why discussing the dos and don’ts for every UPI user is important, and it has become highly relevant as some essential safety measures must be taken to secure UPI transactions.
What are some common UPI security threats?
While financial companies have been updating their security to mitigate the impact of many known frauds, scams, and security issues, fraudsters and scammers have also been updating themselves by using several innovative techniques to scam users. Here are some of the common UPI security threats which have been floating around in 2024:
- Phishing scams: Phishing scams are some of the most common types of scams in recent years. Scammers might create fake websites or apps that look reliable to trick someone into sharing UPI pins or OTPs.
- Sim card duplicating: In this instance, fraudsters might clone sim cards to receive OTPs and other relevant messages
- Fake UPI apps: There have also been growing instances of counterfeit UPI apps being sent over WhatsApp to unsuspecting users who use the software to add malware to key log their user ID and password and record their screen for OTP.
What is the importance of securing UPI payments?
As there is a rapid increase in UPI scams and phishing activities, it is high time to monitor UPI payments to prevent financial losses. In fact, due to these scams, losing bank account credentials and other confidential data is also common. Therefore, following safety measures will also help avoid legal or financial complications and will help build trust in the digital payment system.
Here is a quick list of how securing your UPI payments is beneficial:
- Prevents financial losses
- Safeguard confidential data
- Avoids legal trouble
- Preserves credit score
- Peace of mind
What are some of the best practices for safe UPI transactions?
● Set up UPI pin
Setting up the UPI pin for confidentiality and protection is necessary when using UPI apps for payments. Note that UPI PINs are only required while making payments, not when receiving them. To ensure security, one should not share UPI pins with anyone else.
● Use only official and reliable apps
With multiple fake websites and apps available, the user must cross-check the platform and only use reliable and verified platforms for transactions. The source for downloading the app must also be authentic, such as the Google Play or Apple App Store, to avoid downloading any APKs from links.
● Think before clicking links
Several phishing links circulate on WhatsApp and other similar social networking and messaging platforms. Think and verify before clicking on the links in WhatsApp or text messages, especially if they come from an unknown sender. A wise user would take preventive measures to prevent unauthorised UPI transactions.
● Verify recipient details before sending
Per the guidelines issued by the NPCI (National Payments Corporation of India), the recipient details (number or UPI ID) must be verified before sending. When verifying the UPI ID, check the receiver’s name. Don’t make the payment until the verification is done.
What are some steps to take in case of fraud?
If it is confirmed that the UPI account is under threat or there is a case of financial loss, the experts recommend to take the following steps:
- Do not panic
- Register a complaint (to the police, UPI app, and the cybercrime department)
- Contact the bank and inform them about the potential risk
- Ask the bank to block all relevant cards associated with the UPI app
How can Bajaj Finserv help secure your UPI transactions?
In 2024, Bajaj Finserv is one of the most trustworthy platforms for dealing with financial transactions as it assures UPI users with its highly secure, encrypted security features for safe UPI transactions. The app is not just user-friendly but also ensures cutting-edge data protection. When UPI transactions are at risk, relying upon apps that promise security from financial losses is recommended.
Conclusion
It is imperative to stay vigilant and cautious while using UPIapps. Avoid counterfeit UPI apps and choose official applications like Bajaj Finserv, PhonePe, Airtel Pay, or Paytm. In case of suspicious activity, register a complaint. Seek professional help and contact the respective app’s customer support team. Remember that while UPI payments make life much easier, keeping our bank accounts and financial transactions protected from phishing or scams is essential.
