As digital payments revolutionise India, fraudsters are devising new tactics to exploit unsuspecting users. The latest concern, dubbed the ‘Jumped Deposit Scam,’ has sparked fears amongst Unified Payments Interface (UPI) users.
However, the National Payments Corporation of India (NPCI) has assured users of UPI’s robust security and clarified misconceptions surrounding the alleged scam.
HOW THE SCAM OPERATES
In the Jumped Deposit Scam, fraudsters transfer small amounts of money to a victim’s account to build trust. They then send payment collection requests, urging the victim to refund the amount.
The scam escalates when users, in their haste, authorise these requests by entering their UPI PIN, mistakenly believing it’s required for verifying account balances.
NPCI stated that a UPI PIN is never needed to receive funds and is only used to authorise outgoing payments.
Cyber experts reveal that scammers manipulate victims by creating urgency and using emotional appeals, such as claims of mistaken transfers or fabricated emergencies. These tactics exploit human psychology, making even financially savvy individuals vulnerable to fraud.
NPCI’S CLARIFICATIONS AND SAFETY TIPS
NPCI has reiterated that no cases of this scam have been observed on the UPI platform.
The organisation emphasises that UPI transactions are device-based and require explicit user authorisation with a PIN. Merely opening a UPI app or entering a PIN does not initiate or approve any transaction.
To protect yourself, NPCI advises scepticism towards unexpected deposits.
Avoid clicking on suspicious links or responding to unverified requests. If you receive an unsolicited deposit, consult your bank or UPI service provider. Educating yourself about digital payments and staying alert are key to preventing fraud.
STAY VIGILANT
While scams like the Jumped Deposit Scam highlight the need for vigilance, NPCI’s clarifications reaffirm UPI’s security and reliability. By understanding how UPI works and being cautious, users can confidently embrace the convenience of digital payments without falling prey to cybercriminals.
