UPI refund scam, phishing, digital arrests, and other online scams you should know about

The advent of the internet has transformed our lives, providing unprecedented convenience and connectivity. With this shift, digital payments have become integral to daily transactions in India, contributing to the country’s rapid technological evolution. However, this digital boom has also paved the way for sophisticated online scams that prey on unsuspecting users. From classic phishing schemes to more complex scams like SIM swapping and digital arrest fraud, these deceptive practices can have devastating financial and personal impacts. Here you can explore some of the most prevalent online scams in India, explains how they work, and provides actionable steps to protect yourself from falling victim.

What is the UPI refund scam?

The UPI (Unified Payments Interface) refund scam is a widespread and deceptive scheme where fraudsters trick individuals into returning money that was never legitimately transferred to them. The scam begins when a perpetrator sends a payment to the victim’s UPI account and subsequently claims that it was sent by mistake, often citing urgent reasons like medical emergencies or essential expenses. If the victim agrees to refund the amount, the scammer reverses the initial transaction, leaving the victim out of pocket.

How to protect yourself from a UPI refund scam?

• Do not refund unknown transactions: If someone claims they have mistakenly sent you money, do not immediately send it back.
• Contact your bank: Report any unsolicited transfers from unknown sources to your bank and seek guidance.
• Request bank-led solutions: If the sender insists, advise them to contact their bank to rectify the error.

What is Phishing?

Phishing scams involve fraudsters posing as reputable organisations to trick individuals into revealing sensitive information. These scams usually come in the form of emails, SMS, or fake websites that appear almost identical to legitimate ones. The messages often carry an urgent tone, warning recipients that their account may be suspended or announcing a fake reward. Once victims click on the provided link, they are directed to a fraudulent site where they are asked to enter personal details like login credentials and payment information.

How to protect yourself from phishing scams?

• Be sceptical of unexpected messages: Even if an email or message appears to come from a trusted source, treat unexpected communications with caution.
• Check URLs carefully: Fake websites often use misspelt or slightly altered URLs to mimic legitimate ones.
• Avoid sharing personal details: Never provide personal or financial information without verifying the authenticity of the request.

What is a SIM swap scam and how does it work?

In a SIM swap scam, fraudsters gain control of a victim’s phone number by convincing mobile service providers to activate the scammer’s SIM card. This allows the scammer to intercept calls and SMS messages, including OTPs (one-time passwords), giving them access to bank accounts and other linked services. Often, this scam is facilitated through collusion with insiders at telecom companies or by using forged documents.

How to protect yourself from SIM swap scam?

• Act quickly if your SIM stops working: If you notice that your phone suddenly loses network service, contact your telecom provider immediately.
• Use a SIM lock: Implement a SIM card lock that requires a password for activation on another device.
• Limit personal information sharing: Be cautious about the information you share online, as it can be used to impersonate you and access your accounts.

What are online shopping scams?

These scams involve fraudulent websites or sellers that lure customers with deals that seem too good to be true. Victims may provide their payment information only to receive counterfeit products, inferior items, or nothing at all. Scammers often create websites that mimic well-known retailers or advertise heavily on social media to attract potential victims.

How to stay safe from online shopping scams?

• Shop only from trusted websites: Stick to well-known and reputable online retailers. Check for customer reviews and ensure the site uses secure payment gateways.
• Be cautious of unrealistic deals: If a deal seems too good to be true, it likely is.
• Use credit cards: Credit cards often provide better fraud protection than debit cards, allowing you to dispute charges more easily.

What is a digital arrest scam?

This scam involves fraudsters impersonating law enforcement officials and falsely accusing victims of being involved in illegal activities. The fraudsters use threats of legal action or "digital arrest" to create panic, coercing victims into making payments or revealing personal information. Payments are typically requested through digital means like UPI to avoid detection.

How to avoid a digital arrest scam?

• Know your rights: Real law enforcement agencies will never demand payments or personal information over the phone or online.
• Verify the identity: If you receive such a call, hang up and directly contact the relevant authorities using official contact information to confirm the claim.
• Stay calm: Scammers often rely on creating a sense of urgency. Take a moment to assess the situation before acting.

What is the KYC (Know Your Customer) scam?

With the push for KYC compliance by banks and financial institutions, scammers are exploiting the process. They pose as representatives from banks or telecom providers and claim that the victim’s account will be suspended if KYC information is not updated immediately. Victims are directed to provide personal information through a fraudulent link or phone call, sometimes resulting in unauthorised access to their bank accounts.

How to protect yourself from a KYC scam?

• Avoid sharing personal details over calls or messages: Legitimate banks and financial institutions will not ask for personal details or documents through unofficial channels.
• Update KYC through official platforms: Always complete KYC updates directly on your bank’s official website or app.
• Report suspicious activity: If you receive a request for KYC information that seems suspicious, contact your bank's customer service immediately.

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