Pushed by the Jan Dhan Accounts, Aadhaar linkage, and mobile phone linkage (the JAM trinity), and the advent of Unified Payment Interface (UPI) as a method for digital payments, it seems as if the entire Indian population today has a bank account through which they can do online transactions and payments. January 2023 recorded 8 billion UPI transactions through which a total sum of Rs 13 trillion was transferred.
This shows that internet and digital payments have been a roaring success in India. But along with this, a lack of awareness, sophisticated techniques deployed by cyber fraudsters, lack of a centralised agency to track and investigate these cyber crimes and policing being a state subject has made it all so easy for anyone to scam you out of your hard earned money in a matter of few seconds. Misuse of QR code and UPI pin is the latest type of cyber crimes.
Table of Contents
Recent Cyber Crime Cases Involving QR Code and UPI Pin
In 2022 alone, the cyber crimes reporting portal of the Ministry of Home Affairs (MHA) received over 10 lakh cyber crime complaints which was 168% more than in 2021. Going by the thumb rule, this is just the tip of the iceberg as there would be scores of cases which went unreported due to various reasons.
In this context, we are sharing a series of blogs in which we will discuss the most common as well as latest types of cyber frauds being attempted these days. The ways in which we can make out a potential fraud and what to do if we fall prey to a cyber fraudster so that the relevant authorities take a speedy action to recover our money.
Types of Cyber Crimes
The first type of cyber crimes we are discussing is the UPI QR code or UPI PIN scam where cyber crimes fraudsters share a QR code and request you to scan it so that you may receive a pending payment. Please remember – scanning a QR code or entering the UPI PIN is required only for making a payment and not for receiving money.
Cybercriminals often exploit emotions like fear and urgency to trick victims. ‘Unveiling the Dark Art of Fear: 5 Unique Scams Exploiting Your Emotions‘ explores how scammers use psychological tactics to deceive people. Understanding these scams can better prepare you to spot and avoid them, keeping your finances safe.
The Famous OLX Scams
This scam is most commonly perpetrated through apps like OLX, Quikr, etc. As you become aware of the dangers posed by QR code scams, it’s also important to arm yourself with broader strategies to protect against cyber fraud. Our blog, ‘Tips to Safeguard from Cyber Crime & Fraud Case,’ offers essential guidelines on securing your digital transactions and personal information. Whether you’re buying or selling online, these tips will help you navigate safely and avoid common pitfalls.
If you have put up an ad to sell any item on these apps, the fraudsters approach you posing as genuine buyers. They engage in little or no negotiation and at times they might agree to buy all items if you have posted multiple items online for sale. Please note they won’t request to meet you physically or look at the items for sale in person. Once the amount is finalised, they will share a link or a QR code and request you to click it or scan it so that you can receive the payment. However, you never receive a payment by scanning a QR code. Instead, the amount will deducts from your account and you might never get it back.
If you reach out to the fraudster after making the payment, they might ask you to share your ID documents like Aadhaar card or PAN card for refunding the amount to you. Please never do this. They shall misuse your documents to either obtain SIM cards or open mule bank accounts to receive money in them.
New Age Cyber Crimes
Similar to QR code scams, other new-age cyber crimes can also seem highly credible. For instance, our blog ‘New-Age Cyber Crime: Your Electricity Distributor/Discom Has No Alibi‘ discusses another sophisticated scam involving fake utility bills and payment requests. By reading this, you’ll gain insights into how fraudsters use seemingly official communications to defraud consumers.
The cyber criminals also pose as sellers on these websites. They put up ads for items like car, motorcycle, mobile phones, etc., at a mouthwatering price, enticing you to reach out to them and buy the item ASAP. The seller’s profile is usually of an Army man/ Police personnel/ Doctor, etc., so that you trust them right away. Once you talk to them over chat or phone, they will ask you to make the entire payment or a token amount and shall share their account details over phone call. The amount goes for good when you make the payment. The seller will start asking you for more payment or deny that they received the money. In reality however, the seller and the item doesn’t even exist, it’s all fake.
Cyber scams are evolving, becoming more sophisticated and harder to detect. ‘5 Sophisticated Scams That Can Happen to You‘ highlights a variety of complex frauds that target individuals across different platforms. Knowing what to look out for is the first step in protecting yourself from falling victim to these advanced tactics.
Read here on ways to stay safe from such scams.
What To Do if You Are a Victim of QR Code or UPI PIN Cyber Crime?
- Reach out to your bank immediately and mention the entire case to them. The Branch Manager can request the receiving bank to initiate a lien on the amount in the account of the cyber fraudster.
- Immediately report the fraud at the cyber crime helpline number – 1930 and fill all details such as the bank account details, transaction number, etc. on the cyber crime website – www.cybercrime.gov.in.
- The faster you report, higher the chances of you getting your money back.
Please follow up with your local police station and cyber crime authorities so they register an FIR as soon as possible and begin investigating the case. In a lot of cases, the police delay converting your complaint into an FIR which slows down the investigation and chances of recovering the amount reduces over time.
To avoid such scams/frauds, Subscribe to our newsletter – ‘The Success Circle‘ and always stay ahead of such fraudsters in the game, free of cost!
FAQs:-
A UPI PIN itself cannot be hacked directly, but cybercriminals often use phishing scams or social engineering tactics to trick individuals into revealing their UPI PIN. For instance, they might ask you to enter your UPI PIN under the pretense of receiving a payment, which is unnecessary for receiving money. Always be cautious and never share your UPI PIN.
If you experience UPI PIN fraud, immediately contact your bank and explain the situation. The Branch Manager can initiate a lien on the fraudster’s account. Additionally, report the fraud to the cyber crime helpline number (1930) and provide all necessary details on the cyber crime website (www.cybercrime.gov.in). Reporting quickly increases the chances of recovering your funds.
Banks have a responsibility to safeguard your account, but liability in UPI fraud cases can vary. If the fraud occurs due to user negligence, such as sharing the UPI PIN, the responsibility may not fully lie with the bank. However, it’s crucial to report the incident to your bank immediately for assistance and to follow the steps for reporting it to the authorities.
For UPI-related issues, you can reach out to the cyber crime helpline number (1930) or visit the cyber crime reporting portal (www.cybercrime.gov.in) for assistance.
Cyber crime through QR codes involves scammers sending fraudulent QR codes under the guise of facilitating payments. When the victim scans the QR code and enters their UPI PIN, money is deducted from their account instead of being credited. This type of fraud exploits the victim’s lack of awareness about QR code functionality.
If a QR code seems suspicious, avoid scanning it. Verify the source of the QR code with the sender. Remember, scanning a QR code or entering a UPI PIN is not required to receive money. Always be cautious and avoid interacting with unknown or unverified QR codes.
