India is home to one of the largest digital payment ecosystems globally. Wallets, instant bank transfers, QR payments, and the Unified Payments Interface (UPI) have transformed daily transactions for millions. However, this rapid adoption has also made digital payments an attractive target for fraudsters.
According to government data, UPI fraud cases have seen a significant rise. In FY2023–2024, 13.42 lakh cases were reported with losses of Rs 1,087 crore, while FY2024–2025 recorded 12.64 lakh cases resulting in losses of Rs 981 crore. Nationwide cybercrime incidents have also increased sharply, from over 10.29 lakh in 2022 to over 22.68 lakh in 2024 and approximately 28 lakh in 2025.
1. Fraudulent UPI Collect Requests
This is one of the most prevalent scams in India. Fraudsters send a UPI collect request, claiming it is for a refund, rebate, or payment confirmation. When the victim enters their UPI PIN, the transaction actually transfers money to the scammer. Remember, a UPI PIN is only required to send money, not to receive it.
2. QR Code Payment Scam
Scammers send QR codes with claims that they are needed to receive a refund, cashback, or confirm a payment. However, scanning the QR code initiates a payment request, deducting money from the victim's account instead of adding funds.
3. Fraudulent Traffic Challan Scheme
Targeting vehicle owners, this rapidly growing scam involves fake SMS or WhatsApp messages claiming a pending traffic challan. Victims are urged to make immediate payments via a link, which often installs malicious APK files, granting fraudsters access to banking apps and phone data. Always verify traffic challans only through official government portals or apps.
4. Phishing Links (Fake Account Block Alerts and KYC)
Fraudsters impersonate banks or payment apps, sending messages like "Your KYC is no longer valid" or "Your bank account will be blocked." Victims are directed to fake websites designed to steal OTPs, login credentials, or card details.
5. Fraudulent Remote Access Apps
Victims are tricked into downloading screen-sharing apps such as AnyDesk or TeamViewer. Once installed, fraudsters can view the phone screen and steal sensitive information like bank passwords and OTPs.
6. Fake Payment Screenshot Fraud
Primarily targeting merchants, this scam involves scammers displaying fake payment confirmation screenshots or using counterfeit payment apps to mimic successful UPI transactions. Merchants release goods or services only to realize later that no payment was made.
7. The Digital Arrest Scam
This is one of the fastest-growing scams in India. Fraudsters pose as government officials, police, or CBI agents, accusing victims of a crime. They threaten arrest and demand money for "verification" or "legal settlement." Authorities have warned that no law enforcement agency conducts investigations or collects payments via video calls.
8. Fraudulent Customer Service Scheme
Scammers post fake customer service numbers online. When victims call these numbers seeking help, they are instructed to install apps, share OTPs, and provide card information, leading to financial loss.
9. Fraudulent SIM Swap
Scammers obtain a duplicate SIM card linked to the victim's phone number, enabling them to intercept OTPs and access banking apps. Recent cases have seen thieves use SIM swaps to conduct unauthorized bank and card transactions.
10. Refund/Reversal Fraud
Victims are asked to repay money that was supposedly sent to their account by mistake. Fake SMS alerts or notifications create the illusion of a deposit. In one documented case, a senior citizen approved "refund" transactions that actually debited his account, resulting in a loss of nearly Rs 5.5 lakh.
Staying informed and cautious is the best defense against these scams. Always verify requests, never share OTPs or PINs, and use only official channels for financial transactions.
