Overpayment and Refund Request Scam — How to Identify & Stay Safe

INDIA — By BharatSecure Threat Intelligence Team · Updated Jun 09, 2026

Severity: High | View Full Scam Details

Overpayment and Refund Request Scam in India 2026: Beware of UPI Fraud and Fake Government Calls

The overpayment and refund request scam is an alarming cyber threat sweeping India in 2026, tricking victims into losing money through fake refund claims and UPI payment fraud.

What Is the Overpayment and Refund Request Scam?

This scam typically targets everyday Indians using mobile phones and UPI apps, pretending to be from a government agency or reputed organisation offering a refund due to “overpayment.” Fraudsters often approach victims through WhatsApp messages, phone calls, or SMS, sometimes impersonating government institutions such as the Income Tax Department, GST authorities, or well-known banks.

In these cases reported to police and cybercrime cells, victims are told they have paid more than required for taxes, fees, or purchases, and are promised a refund via direct UPI transfer. However, before the refund can be processed, scammers ask the victim to share their UPI PIN, Aadhaar-linked bank details, or even share an OTP “to verify” the refund. This information is then misused to transfer money unethically from the victim’s account. The scam is widespread, with dozens of complaints filed every week on cybercrime portals and at local police stations across India.

Agencies like RBI and CERT-In have warned the public about frauds involving UPI and fake government calls because these scams can cause significant financial losses and identity theft. The Indian government’s I4C (Indian Cyber Crime Coordination Centre) also actively tracks and alerts citizens on such fraud patterns.

How This Scam Works — Step by Step

1. Initial Contact: The victim receives a WhatsApp message, SMS, or a phone call from a number claiming to be from a government department or bank. The caller or message alleges that the victim has made an overpayment (for tax, utility bills, or online shopping) and is eligible for a refund.

2. Creating Urgency: Fraudsters pressure the victim by saying the refund is time-sensitive and must be claimed immediately, often warning of legal trouble or penalty if ignored.

3. Sharing UPI Details: The scammer requests the victim’s UPI ID and asks for the UPI PIN or OTP, sometimes under a false claim that it’s needed to “verify the refund process” or “cancel the debit.”

4. Fake Verification Requests: Victims may be asked to download remote access apps or share screenshots of bank statements or Aadhaar details, increasing the risk of misuse.

5. Money Drain: Using the collected UPI PIN or OTP, scammers initiate unauthorized transactions, emptying the victim’s bank account or transferring funds to their own UPI ID.

6. Disappearance: Once the money is transferred, scammers end communication, blocking the victim’s number or deleting messages, leaving no easy way to trace them.

Real Warning Signs to Watch For

• Calls or messages pressuring you to act immediately for a refund or penalty.
• Requests for UPI PIN, OTP, or Aadhaar details over phone or WhatsApp.
• Calls from unknown or suspicious phone numbers, often with Indian area codes but no official verification.
• Poor grammar or inconsistent language in texts claiming to be from government bodies.
• Unsolicited messages promising refunds when you have not made any recent payments.
• Requests to download remote control apps or share screenshots of sensitive documents.
• Offers that sound “too good to be true,” like government refunds on very small or no payments.

What Happens to Victims

Victims often face severe financial losses as their bank accounts linked to UPI apps are drained instantly without any real refund. Unlike credit card frauds where reversals may be attempted, UPI transactions are nearly instantaneous and irreversible once authorized using the PIN or OTP.

Moreover, identity information like Aadhaar details or bank passcodes shared can result in longer-term misuse such as SIM swap fraud, opening fake loan accounts, or unauthorized KYC updates. The trauma of this loss can lead to emotional distress, loss of trust in digital payments, and even social stigma.

The difficulty in tracking scam callers combined with limited compensation options under RBI guidelines makes recovery challenging for many victims.

What RBI and CERT-In Say

The Reserve Bank of India (RBI) has issued multiple advisories warning customers never to share UPI PIN, OTPs, or bank passwords with anyone, even if they claim to be from a government or financial institution. RBI helpline numbers and grievance redressal channels are recommended for any suspicious transaction.

CERT-In (Indian Computer Emergency Response Team) regularly circulates alerts on cyber fraud trends, including social engineering tactics like refund scams, in coordination with the I4C.

Citizens are urged to report suspicious messages or cybercrime incidents immediately via the 1930 national cybercrime helpline or cybercrime.gov.in portal to help authorities track scams and protect others.

How to Protect Yourself

1. Never share your UPI PIN, OTP, Aadhaar number, or bank passwords over phone calls, WhatsApp, or SMS.
2. Verify refund claims independently by contacting the official helpline or website of the concerned government department or bank.
3. Ignore unsolicited refund offers, especially from unknown WhatsApp numbers or phone calls.
4. Do not click on links or download apps received from unverified sources asking for remote access or personal information.
5. Regularly check your bank and UPI transaction history to spot unauthorized transfers early.
6. Use mobile apps with biometric locks and two-factor authentication where possible for added security.
7. Report any suspicious messages or calls to the 1930 cybercrime helpline or cybercrime.gov.in immediately.

What to Do If You've Been Targeted

• Immediately block the caller contact and do not engage further.
• Contact your bank’s customer service and request to block your UPI or bank account to stop further deductions.
• Change all your UPI and banking app passwords and reset your UPI PIN.
• File a complaint on cybercrime.gov.in giving full details of the incident.
• Call the 1930 national cybercrime helpline for guidance on next steps.
• Inform your telecom provider if you suspect SIM swap or misuse of your Aadhaar linked number.
• Keep records of all calls, messages, and transaction details for the police or investigative authorities.

Frequently Asked Questions

Q: Can the bank reverse a UPI transaction made through scammer’s fraud?
A: UPI transactions are usually final and instant. Banks rarely reverse payments made with your correct UPI PIN or OTP due to fraud. This is why protecting your PIN and OTP is crucial.

Q: How can I verify if a call about a government refund is legitimate?
A: Never trust unsolicited calls or messages. Independently call the official customer care or government helpline numbers listed on their verified websites before sharing any information.

Q: What official number can I call if I am scammed?
A: You can report the incident to the national cybercrime helpline at 1930 or file a complaint on cybercrime.gov.in. Your bank’s fraud team should also be notified immediately.

Help BharatSecure.app fight these scams — verify suspicious messages and calls, and report fraud at 1930 to protect yourself and others.

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.