E-commerce INR Chargeback Abuse Scam — How to Identify & Stay Safe

INDIA — By BharatSecure Threat Intelligence Team · Updated May 29, 2026

Severity: CRITICAL | View Full Scam Details

Beware of the E-commerce INR Chargeback Abuse Scam in India 2026: A Critical Warning for UPI Users

The e-commerce INR chargeback abuse scam is an alarming fraud trend in India that targets shoppers using UPI and WhatsApp, causing severe financial losses and digital trust issues.

What Is the E-commerce INR Chargeback Abuse Scam?

This scam involves fraudsters abusing the UPI chargeback system combined with fake e-commerce transactions to steal money from victims. Criminals pose as customers, sellers, or payment intermediaries, exploiting the refund and chargeback process in India’s booming digital commerce space. The scam mainly targets everyday UPI users, especially those who shop frequently on WhatsApp-based stores or unregulated online marketplaces.

Public complaints to cybercrime authorities and advisories from entities such as RBI, CERT-In, and the Indian Cyber Crime Coordination Centre (I4C) have highlighted an increase in these chargeback abuse cases since 2023. Fraudsters misuse transaction disputes by falsely claiming non-delivery or defective products, prompting UPI refunds to their accounts. Meanwhile, the victims may receive fake delivery confirmations or multiple fraudulent messages to conceal the fraud. The RBI and CERT-In emphasize vigilance against such scams, as they pose a critical risk (9/10 severity) to India’s digital payments ecosystem.

How This Scam Works — Step by Step

1. Initial Contact via WhatsApp or E-commerce Platforms: The fraudsters approach victims through WhatsApp messages claiming to represent popular e-commerce sellers or offering attractive product discounts.

2. Fake Purchase and Payment Request: The victim is persuaded to buy an item using UPI and send the payment to a UPI ID linked to the fraudsters. Sometimes this occurs via a WhatsApp Business account or a fake website.

3. Fake Delivery and Confirmation: The scammer sends fake delivery updates or even dummy tracking numbers to reassure the victim that the order is on the way.

4. Victim’s Dispute and Chargeback Request: After a few days, the caller or fraudster posing as the buyer claims the product was never delivered or was defective, requesting a chargeback or refund through UPI’s dispute mechanism.

5. Abuse of the Chargeback System: Exploiting gaps in verification and seller protections, the fraudster convinces the bank or payment app to reverse the INR payment, crediting a fraudulent account instead. Meanwhile, the victim loses both the product and the money.

6. Use of OTP and SIM Swap Tactics: In some cases, OTPs sent by banks to the victim’s phone are intercepted through SIM swap or fraudulently obtained OTPs, allowing fraudsters to approve refunds or transfer money.

Real Warning Signs to Watch For

• Unexpected WhatsApp messages offering huge discounts on popular products
• Requests to pay via unfamiliar or newly created UPI IDs
• Sellers pushing for quick payments without verified accounts
• Delivery confirmation messages without valid tracking links or courier details
• Calls or messages insisting on OTP sharing or urgent bank app approvals
• Refund or chargeback requests that you did not initiate
• Communication from unknown numbers claiming to be customer support

What Happens to Victims

Victims often suffer significant INR losses due to fraudulent chargebacks, where banks or payment apps reverse payments based on misleading claims. This is especially damaging when the original transaction used UPI linked to the victim’s Aadhaar-based bank account, as attackers can exploit Aadhaar and mobile vulnerabilities to intercept OTPs or execute SIM swaps. Beyond financial loss, victims face emotional distress and erosion of trust in digital payments, sometimes struggling to recover funds due to complex dispute resolution processes. Such scams also overload India’s cybercrime redressal mechanisms, adding to the challenge.

What RBI and CERT-In Say

The Reserve Bank of India (RBI) has issued advisories recommending strengthening OTP verification, discouraging OTP sharing, and increasing awareness about frauds exploiting the UPI ecosystem. RBI’s framework mandates banks to implement robust customer authentication measures to curb chargeback abuse.

CERT-In regularly alerts Indian users about social engineering attacks via WhatsApp and unauthorized chargebacks, emphasizing never to share OTPs or banking credentials. CERT-In’s 1930 Cyber Crime Helpline serves as a crucial resource for fraud victims seeking timely support.

The Indian Cyber Crime Coordination Centre (I4C) also facilitates coordinated investigations and public advisories on such scams to better protect consumers statewide.

How to Protect Yourself

1. Verify the Seller: Always check buyer/seller credentials on trusted e-commerce platforms, not just WhatsApp messages.
2. Avoid Unknown UPI IDs: Do not transfer money to unfamiliar or newly created UPI IDs without confirming legitimacy.
3. Never Share OTPs: Your bank or payment app will never ask for your OTP or password—do not share them with anyone.
4. Use App-Based UPI Payments: Use official bank or BHIM UPI apps instead of links or QR codes sent via WhatsApp.
5. Confirm Delivery Independently: Verify courier tracking numbers on official logistics websites before confirming receipt.
6. Report Suspicious Messages: Forward potential scam messages to BharatSecure.app for verification.
7. Regularly Monitor Bank Statements: Keep an eye on UPI transactions and dispute any unauthorized transaction immediately.

What to Do If You’ve Been Targeted

• Contact your bank or UPI app customer care immediately to block or freeze your account to stop further unauthorized transactions.
• Report the incident to the cybercrime police via the 1930 helpline or file a complaint on the official cybercrime.gov.in portal.
• Inform your mobile service provider if you suspect SIM swap fraud to secure your mobile number.
• Retain all message screenshots, transaction IDs, and communications as evidence for authorities.
• Change bank app passwords and UPI PINs promptly after the fraud is detected.
• Approach the nearest police station if financial loss is substantial and provide a detailed written complaint.

Frequently Asked Questions

Q: Can I get my money back if I am a victim of this chargeback abuse scam?
A: Recovery is possible but complicated. Contact your bank and file a police report promptly. RBI mandates banks to have grievance redressal processes, but delays and denials can occur depending on case specifics.

Q: How do fraudsters get access to my OTP during UPI payments?
A: Fraudsters may use SIM swap techniques, social engineering, or malware on your phone to intercept OTPs. Never share OTPs and be cautious of suspicious calls or messages.

Q: Are WhatsApp e-commerce stores safe to buy from?
A: Not always. WhatsApp-based sellers may lack formal verification and consumer protections. Verify the seller’s identity and payment details independently before transacting.

Stay alert and protect your money by verifying suspicious messages and payment links at BharatSecure.app. If you suspect scams, report them immediately at the 1930 cybercrime helpline.

Disclaimer: This article describes a pattern of fraud reported in public sources for public-safety awareness. It is not legal, financial, or medical advice. To request correction or removal of any content, write to hello@bharatsecure.app.