Avoid These Major Mistakes When Using UPI Payments
Digital Payments Surge in India
New Delhi, January 6, 2026: The trend of digital payments is booming in India, with UPI (Unified Payments Interface) emerging as the most favored method. According to data from the NPCI, there were 20.47 billion transactions via UPI in November 2025, amounting to a staggering ₹26.32 lakh crore. However, alongside this growth, incidents of UPI fraud are also on the rise. Recent statistics from the Ministry of Finance reveal that in the current fiscal year (FY26), UPI fraud has resulted in ₹805 crore in losses, with 1.064 million cases reported by November.
Fraud Awareness Among UPI Users
A survey indicates that one in five UPI users has experienced fraud at least once in the past three years. Many individuals lose money due to minor mistakes. If you frequently use UPI for payments, it's crucial to avoid these significant errors to prevent your bank account from being emptied in an instant!
Top 5 Mistakes to Avoid
Here are five critical mistakes to steer clear of:
- Never Share Your UPI PIN: Fraudsters often impersonate bank or customer service representatives over the phone, asking for your PIN. Remember, banks will never request your PIN, OTP, or password via phone. Sharing your PIN can allow hackers to withdraw money directly from your account.
- Avoid Clicking or Scanning Unknown Links or QR Codes: Scammers lure victims with fake UPI links or QR codes. Clicking on these can install malicious apps that initiate auto-debits. Always verify the QR code from the original merchant and stay away from unfamiliar links.
- Do Not Return Money Sent by Mistake: Scammers may send a small amount or fake transaction notifications, claiming they accidentally sent money and asking for it back. If you return the money, the actual funds go to them. In such cases, contact your bank instead of sending money back yourself.
- Do Not Approve Payment Requests Without Verification: Sometimes, you may receive large payment requests under the guise of refunds or offers. Approving these without checking can lead to unauthorized deductions. The NPCI has even halted P2P Collect requests to prevent fraud. Always verify requests before approval.
- Avoid Downloading Untrusted Apps or Using Screen Sharing Apps: Fraudsters can take control of your phone through fake UPI apps or remote access apps like AnyDesk. Stick to official apps like Google Pay or PhonePe and avoid unknown applications.
What to Do If You Fall Victim to Fraud?
If you experience fraud, take these steps:
- Immediately call your bank and request to block your account.
- File a complaint on the Cyber Crime Portal (cybercrime.gov.in) or call the helpline at 1930.
- If reported within 72 hours, the bank may initiate the refund process.