Fraudulent UPI Chargeback Claims Scam — How to Identify & Stay Safe

INDIA — By BharatSecure Threat Intelligence Team · Updated Jun 08, 2026

Severity: Critical | View Full Scam Details

Fraudulent UPI Chargeback Claims Scam in India 2026: Beware of Fake Refunds on WhatsApp

A new wave of cyber fraud is targeting Indian UPI users through fake chargeback claims on WhatsApp, causing severe financial losses and distress.

What Is the Fraudulent UPI Chargeback Claims Scam?

The fraudulent UPI chargeback claims scam involves callers or WhatsApp messages falsely claiming that a recent UPI transaction from the victim’s account is under dispute and eligible for a refund. These fraudsters pose as bank officials, payment app agents, or even RBI representatives, assuring the victim of a quick refund process. In reality, this is a trick to steal sensitive information or prompt the victim to transfer money to the fraudsters.

This scam primarily targets everyday UPI users who frequently transact via platforms like Google Pay, PhonePe, or BHIM. Given that UPI handles transactions worth trillions INR daily, scammers exploit users' trust in instant payments and chargebacks. Reports of such scams have surged in 2025 and early 2026, with police and CERT-In flagging it as a critical threat to digital financial safety.

While the Reserve Bank of India (RBI) has issued general advisories about safeguarding UPI credentials, and CERT-In continues to monitor increasing digital fraud, there has yet to be a specific bulletin solely on this fraud type. However, the Ministry of Home Affairs’ I4C cybercrime wing has highlighted rising complaints on the official portal cybercrime.gov.in and urges the public to remain vigilant.

How This Scam Works — Step by Step

1. Initial WhatsApp Message or Call: Victims receive a WhatsApp message or a call from a number claiming to be a bank agent or UPI support. The message states that a recent UPI payment from their account, say of INR 5,000, is disputed and can be refunded after verification.

2. Fake Identity Verification: The caller asks the victim to share personal details such as Aadhaar number, UPI PIN, or OTP supposedly to “verify” transactions or process the refund.

3. Sending a Link or Request: The fraudster often shares a link to a fake UPI or KYC page that collects login credentials or asks for “reversal” payments. Sometimes, they request the victim to send money via UPI to a “secure” account for chargeback processing.

4. Victim Shares Sensitive Data or Money: Believing they will get a refund, victims enter sensitive information or transfer funds. The scammers use these details to drain bank accounts or carry out unauthorized payments.

5. Loss Realized Too Late: Victims find their bank accounts abruptly drained or notice new payments they did not authorize. Attempts to reverse payments are difficult as these transfers were the victim’s own initiated transactions under false pretenses.

Real Warning Signs to Watch For

• Messages or calls demanding your UPI PIN or OTP for “refund” or “verification.”
• Requests to share Aadhaar details, bank account numbers, or scanned KYC documents remotely.
• Urgency or pressure tactics emphasizing “limited time” to claim a refund.
• Links to non-official websites mimicking bank or payment app portals.
• Claims that you must transfer money to a “holding” or “security” account for chargeback.
• Messages or calls unusually from new or unknown WhatsApp numbers.
• Any transaction reversals that require you to proactively send money rather than the money being credited automatically.

What Happens to Victims

Victims face financial loss ranging from a few thousand to lakhs of rupees. Since UPI transactions are instant and irreversible without bank intervention, funds sent unknowingly to scammers vanish quickly. The misuse of Aadhaar or KYC data collected in this process can lead to further identity theft, fraudulent accounts opening, or SIM swapping, adding layers to the financial damage.

The emotional toll includes stress over loss of savings, distrust in digital payments, and difficulties in recovery. Often victims report delayed response from banks and law enforcement, compounding their distress. The visibility of such scams highlights the ongoing challenges India faces in securing digital financial literacy among all age groups.

What RBI and CERT-In Say

The Reserve Bank of India has reiterated that no bank official will ever ask for your UPI PIN, OTP, or full Aadhaar details over call or WhatsApp. RBI’s UPI guidelines strictly prohibit sharing credentials. Additionally, CERT-In encourages users to report cyber fraud incidents promptly on portals like cybercrime.gov.in. The Ministry of Home Affairs’ I4C unit actively pursues complaints registered under the 1930 National Cyber Crime Reporting Portal.

Although no formal RBI advisory is out yet on this exact scam, their general circulars on digital payment fraud highlight customer vigilance and caution against phishing attempts. The RBI customer helpline (1800-11-6655) and the 1930 cybercrime helpline are vital resources.

How to Protect Yourself

1. Never share your UPI PIN, OTP, Aadhaar number, or bank details over phone or WhatsApp, even if the caller claims to be a bank official.
2. Do not click on suspicious WhatsApp links or download attachments from unknown sources.
3. Verify any “refund” or chargeback claims by contacting your bank or payment app directly through official channels.
4. Enable device security measures — lock apps with PINs or biometrics, and use official app stores only.
5. Regularly check your bank and UPI transaction history for unauthorized payments.
6. Register your mobile number with the Do Not Disturb (DND) service to reduce unsolicited marketing or scam calls.
7. Report suspicious messages and calls immediately on cybercrime.gov.in and call 1930.

What to Do If You've Been Targeted

If you suspect you have fallen victim:

• Immediately block the scammer’s number on WhatsApp and your phone.
• Change your UPI PIN and bank passwords from official apps only.
• Contact your bank’s customer service or fraud helpline to freeze your account or block suspicious transactions.
• File a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) and call the 1930 cybercrime helpline for guidance.
• Inform your telecom provider if you suspect SIM swapping or unauthorized SIM activity.
• Preserve all messages and call records as proof for authorities.

Frequently Asked Questions

Q: Can UPI transactions be reversed once completed?
A: UPI payments are generally instant and irreversible unless the recipient agrees to refund. Chargebacks are rare and managed by banks only under valid disputes—not through unsolicited calls or WhatsApp messages.

Q: How do scammers get my Aadhaar or bank details?
A: They may collect details through fake KYC forms, phishing links, or by tricking victims into sharing them during calls or chats. Never share sensitive documents over chat.

Q: What official channels can I verify suspicious refund claims?
A: Contact your bank’s official customer service number or payment app helpdesk directly. Use RBI’s helpline (1800-11-6655) or the cybercrime helpline (1930) to report and verify.

Verify suspicious messages or offers related to UPI or refunds at BharatSecure.app, and promptly report fraud incidents by calling 1930 or filing a complaint online.

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.