As UPI fraud worries rise, can the e-rupee be a safer way to pay? — How to Identify & Stay Safe

INDIA — By BharatSecure Threat Intelligence Team · Updated Apr 30, 2026

Severity: MEDIUM | View Full Scam Details

As UPI Fraud Worries Rise in India 2026, Can the E-Rupee Be a Safer Way to Pay?

UPI fraud is rapidly increasing across India, putting millions of users’ money at risk through sophisticated scams.

What Is the "As UPI Fraud Worries Rise, Can the E-Rupee Be a Safer Way to Pay?" Scam?

In 2026, UPI fraud remains one of the most common digital payment scams targeting everyday Indians. Fraudsters exploit the popularity of Unified Payments Interface (UPI), a system that processes billions of transactions every month, by deceiving users into authorizing fraudulent payments. This scam especially targets those who frequently transact using apps like Google Pay, PhonePe, Paytm, or BHIM. The surge in these fraud incidents has become a major concern for users, regulators like the Reserve Bank of India (RBI), and agencies such as CERT-In and the Indian Cyber Crime Coordination Centre (I4C).

The scam works by tricking users into unknowingly approving money transfers or sharing UPI PINs and OTPs. According to RBI’s latest data, UPI fraud cases prompted a rise in complaints filed with the National Cyber Crime Reporting Portal. The government and RBI have issued advisories warning users against shortcuts in authentication and urging vigilance while transacting digitally. Meanwhile, as these fraud cases rise, experts debate whether India’s move toward introducing the digital currency e-rupee can offer safer, more secure payments by cutting down on risks inherent in intermediary apps and third-party operators.

How This Scam Works — Step by Step

1. Initial Contact by Fraudster: You may receive a phone call, SMS, WhatsApp message, or even a social media message claiming to be from your bank, payment platform, or government agency. These messages often warn of “unauthorized transactions,” “account blocking,” or “new UPI security upgrades.”

2. Fake Verification or Refund Request: The fraudster asks you to verify your UPI ID or Aadhaar details or promises a fake refund or cashback that requires urgent action. They may direct you to click a link or install a malicious app.

3. Request for OTP or UPI PIN: To “confirm” the process, the scammer asks for your UPI PIN, one-time password (OTP), or access to your phone remotely.

4. Generating Unauthorized Transactions: Once they have your credentials or remote access, the fraudster initiates multiple UPI payments or links your bank account to their app.

5. Draining Funds: Money is debited from your account instantly. Because UPI transactions happen in real-time and generally cannot be reversed, victims lose their funds before they can respond.

Real Warning Signs to Watch For

• Sudden calls or messages claiming urgent banking issues or refunds.
• Requests to share OTPs, UPI PINs, or bank passwords under any pretext.
• Messages with poor grammar or unofficial communication channels (WhatsApp instead of official app).
• Links asking you to download unknown or third-party apps.
• Urgency tactics such as threats of account suspension or legal action.
• Unknown payees linked to your UPI ID or unexpected transaction notifications.
• Requests to share Aadhaar or PAN details to “complete verification.”

What Happens to Victims

Victims in India face immediate financial losses as UPI payments are almost impossible to stop or reverse once authorized. The fraudsters often withdraw the money instantly, leaving users with limited options. Many victims are helpless when fraudsters use SIM swap techniques to take control of mobile numbers, bypassing even two-factor authentication.

Beyond money lost (which can be in thousands or lakhs of INR), victims suffer emotional distress, particularly senior citizens who may not be fully comfortable with digital technology. The hassle of reporting the scam, freezing bank accounts, and disputing charges adds to the trauma. Aadhaar misuse in these scams can also lead to more severe identity theft and long-term financial damage.

What RBI and CERT-In Say

The Reserve Bank of India has issued circulars urging users to keep their UPI PIN confidential and avoid sharing OTPs with anyone. RBI’s helpline number for banking-related fraud is 1800 180 1111. CERT-In, India’s Computer Emergency Response Team, has advised citizens to stay alert for phishing links and unauthorized payment requests. They operate the national cybercrime helpline at 1930, which caters specifically to cyber fraud complaints.

The Indian Cyber Crime Coordination Centre (I4C) also runs awareness programs focusing on digital payment safety and collaborates with law enforcement to trace fraudsters quickly. Both RBI and CERT-In emphasize using official banking apps and verifying communications through official channels only.

How to Protect Yourself

1. Never share your UPI PIN, OTP, or passwords with anyone, even if they claim to be bank officials.
2. Avoid clicking on links sent via SMS or WhatsApp for payments or refunds; always use official apps to transact.
3. Regularly check your bank and UPI app transaction history for unfamiliar payments.
4. Enable app-level security (like fingerprint or face recognition) on your payment apps.
5. Update your phone’s software and apps to patch security vulnerabilities.
6. Beware of unsolicited messages or calls and independently verify any urgent claims by calling your bank.
7. Register your mobile number with the telecom operator’s DND (Do Not Disturb) service to reduce spam calls.

What to Do If You've Been Targeted

1. Immediately block UPI transactions by contacting your bank’s customer service or using your app’s freeze/block option.
2. Report the fraud at the National Cyber Crime Reporting Portal (cybercrime.gov.in) with all details and evidence.
3. Call the 1930 cybercrime helpline to get guidance on next steps.
4. Inform your telecom operator if you suspect a SIM swap or unauthorized access.
5. Change passwords and PINs on your UPI apps and bank accounts.
6. File an FIR at your local police station with cybercrime details.
7. Monitor your bank statements and credit report for further suspicious activity.

Frequently Asked Questions

Q: Can I reverse a UPI transaction if I realize it's a fraud too late?
A: Generally, UPI payments are instant and irreversible. Once a transaction is authorized with your PIN, banks cannot reverse it. Immediate reporting can help trace the fraudster but may not guarantee fund recovery.

Q: Is the new e-rupee safer against UPI frauds?
A: The e-rupee, India’s official digital currency, runs on a regulated, centralised platform which is expected to reduce risks from third-party apps. However, users must still follow security best practices as fraudsters may evolve tactics.

Q: How can I confirm that a call or message is genuinely from my bank or RBI?
A: Banks and RBI never ask for your PIN, OTP, or passwords over calls or SMS. Always verify by calling official helpline numbers published on your bank’s website or RBI’s portal.

UPI fraud continues to challenge India’s digital payment ecosystem, but awareness and caution are your best shields. Wondering if a message or call is genuine? Verify it safely before you act — only at BharatSecure.app. Keep your money safe!