Can your UPI App be hacked? Student exposes 3 loopholes — How to Identify & Stay Safe

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

Severity: MEDIUM | View Full Scam Details

Can Your UPI App Be Hacked in 2026? Student Exposes 3 Loopholes Putting Indians at Risk

UPI fraud is evolving, and a young student has recently revealed three critical loopholes that cybercriminals could exploit to hack your UPI app and steal your money.

What Is the Can Your UPI App Be Hacked? Student Exposes 3 Loopholes Scam?

Unified Payments Interface (UPI) is now the backbone of digital payments in India, with over 8 billion transactions monthly. But with popularity comes risk. In early 2026, a tech-savvy Indian student published a detailed report exposing three major security loopholes in popular UPI apps. These loopholes can allow hackers to gain unauthorized access to your UPI credentials or payment authorisation, ultimately draining your bank accounts.

This scam targets regular Indian smartphone users who rely on UPI for everyday transactions — from paying for groceries to transferring money to family. Fraudsters exploit vulnerabilities in lesser-known UPI apps, poorly secured smartphone settings, and social engineering tactics to bypass security features.

The scam is concerning because it does not rely solely on tricking victims into sharing OTPs (One-Time Passwords). Instead, it highlights systemic gaps in app design and permissions, which could affect millions. The Reserve Bank of India (RBI) and CERT-In (Indian Computer Emergency Response Team) have repeatedly warned users about increasing digital payment frauds, and this new exposure aligns with those concerns. The government’s I4C (Indian Cyber Crime Coordination Centre) is actively tracking such cases to strengthen UPI security measures.

How This Scam Works — Step by Step

1. Initial Contact & Phishing Link: The victim receives a message on WhatsApp or SMS claiming to be from their bank or a popular UPI app informing them about "urgent app update" or "account verification". The message contains a malicious link that leads to a fake app or phishing site.

2. Fake App Installation or Permissions Abuse: If the victim clicks the link, they may unknowingly download a fake UPI app clone or a malicious app requesting excessive device permissions, such as access to SMS or accessibility features.

3. Harvesting Credentials: Using these permissions, the malicious app intercepts OTPs and captures UPI PIN entries entered on the victim’s phone.

4. UPI Payment Initiation: Once the fraudster has the UPI PIN and necessary authentication, they initiate fund transfers from the victim's linked bank account through real UPI channels.

5. Transaction Completion Before Detection: These fraudulent transactions typically complete instantly or within minutes. By the time victims notice the deduction, the money is already transferred to unknown accounts or wallet services.

6. Covering Tracks: Some attackers may further use tricks like SIM swapping to delay victims’ ability to regain control, making the scam harder to detect and reverse.

Real Warning Signs to Watch For

• Unexpected messages urging immediate action regarding your UPI app or bank account, especially with links to unknown sites.
• Fake app downloads requested via WhatsApp/SMS that ask for unusual device permissions like accessibility or SMS reading.
• OTPs arriving repeatedly without any transaction initiated by you.
• Pop-ups or notifications asking for your UPI PIN outside the official app environment.
• Phone behaving strangely with high battery drain or slower response—potential sign of background malicious activity.
• Alerts about SIM change requests or receiving multiple OTPs related to SIM/card changes.
• Transactions or debit notifications from your bank or UPI app that you did not initiate.

What Happens to Victims

Victims of this fraud often face immediate financial loss in thousands or even lakhs of rupees in INR, depending on the linked bank accounts. Unlike credit card fraud, UPI transactions do not have a straightforward reversal process. RBI guidelines specify that fraud reporting must be done promptly, but there is no guarantee of reimbursement, especially if negligence is suspected.

Besides financial loss, victims suffer emotional stress and loss of trust in digital payments. The complications around SIM swap fraud linked to these scams often delay regaining control over accounts and phones. Furthermore, misuse of Aadhaar-linked biometric authentication can deepen the breach, making identity theft incidents harder to resolve.

What RBI and CERT-In Say

RBI has issued multiple circulars focusing on strengthening two-factor authentication (2FA) and restricting app permissions on mobile devices. In a recent advisory, RBI emphasized using only government-approved or bank-endorsed UPI apps downloaded from official Play Stores and avoiding clicking on unknown links.

CERT-In urges users to report suspicious digital payment activity immediately via cybercrime.gov.in and has set up a 24x7 helpline — dial 1930 for cybercrime complaints relevant to UPI fraud.

The Indian Cyber Crime Coordination Centre (I4C) also recommends regular checks on bank statements and immediate reporting of unauthorized transactions to both banks and law enforcement.

How to Protect Yourself

1. Download UPI apps only from official app stores like Google Play Store or Apple App Store.
2. Never click on links from unknown WhatsApp or SMS messages claiming to be from banks or UPI apps.
3. Avoid installing apps asking for excessive permissions, especially accessibility or SMS access.
4. Always enable multi-factor authentication (MFA) where available, including biometric locks.
5. Do not share OTPs, UPI PIN, or Aadhaar details with anyone, even if they claim to be bank officials.
6. Regularly check your bank and UPI app transaction statements for unauthorized debit alerts.
7. Immediately inform your bank to block UPI-enabled transactions if you suspect any compromise.

What to Do If You've Been Targeted

• Call your bank’s helpline immediately to block UPI payments linked to your account.
• Report the fraud to your nearest cybercrime police station or online on cybercrime.gov.in with all transaction details.
• Contact CERT-In helpline at 1930 to lodge a cybercrime complaint.
• File an FIR (First Information Report) with your local police including all evidence like screenshots and SMS/MMS messages.
• Inform your mobile operator if you suspect SIM swap to prevent further damage.
• Change your UPI app password and UPI PIN from a secure phone once the issue is reported.
• Keep a close watch on your bank accounts for the next 3 to 6 months.

Frequently Asked Questions

Q1: Can my UPI PIN be hacked remotely without my device?
A: No, hackers typically need access to your phone or trick you into entering your UPI PIN on a fake app or phishing page. Remote hacks without any interaction are extremely rare.

Q2: What should I do if I receive multiple OTPs without making transactions?
A: This is a red flag of someone attempting fraud. Do not share these OTPs. Immediately contact your bank, change your UPI PIN, and report the issue to cybercrime authorities.

Q3: Can RBI reverse fraudulent UPI transactions?
A: RBI guidelines allow banks to investigate and potentially reverse fraud transactions if reported quickly. However, reversal is not guaranteed, and timely reporting is critical.

Digital payments are convenient but require vigilance. If you get suspicious messages or calls about your UPI app or bank details, don’t act immediately. Instead, verify the information first at BharatSecure.app and stay protected against digital fraud.