Upi and online banking fraud
Cyber Awareness & Digital Citizenship Hackathon
4 Surprising Truths About Digital Scams That Will Change How You Use UPI...
This blog written as a lab activity task on Hackathon : 31 st Dec, 2025. My topic on Upi and online banking fraud this task is assigned by the Head of the Department of English (MKBU), Prof. and Dr. Dilip Barad Sir.
Here is the infograph of my blog :
Introduction :
In the time it takes to order a coffee with UPI, a scammer can weaponize that same convenience to drain your bank account. The difference isn't technology; it's psychology. The rise of digital payments has been revolutionary, but this convenience has a shadow side: digital fraud has evolved from crude attempts into a sophisticated industry built on psychological manipulation.
In this new landscape, protecting your hard-earned money is no longer about just being "careful." It requires being informed about the counter-intuitive and often surprising ways modern fraudsters operate. They don't just target technological loopholes; they target human nature itself.
This article breaks down the four most impactful truths about modern digital fraud. Understanding these tactics is the first and most critical step in building a defense that truly works in today's digital world.
1. The PIN Paradox: You Never Need to Enter It to Receive Money
One of the most common scams exploits a fundamental misunderstanding of how UPI works. The "Collect Request" deception often plays out on online marketplaces like OLX or Facebook Marketplace. A scammer, posing as a buyer, agrees to a price and offers to send you an advance payment. Instead of sending money, they send a "Collect Request," which can look deceptively similar to a payment confirmation on your phone. Believing you are authorizing a credit, you enter your UPI PIN. The moment you do, the amount is debited from your account.
This scam works because it cleverly inverts your expectation, turning a familiar action—entering a PIN—into an irreversible mistake. If you are ever told you need to enter your PIN to receive a refund or payment, it is a fraud. This single piece of knowledge is your shield. The unbreakable rule is simple: Your UPI PIN is only required to send money or check your balance. You never, under any circumstances, need it to receive funds.
2. They're Not Hacking Your Tech, They're Hacking Your Emotions
While we focus on strong passwords and secure apps, the most sophisticated scammers are targeting something far more vulnerable: our emotions. They practice "Emotional Hijacking," a technique designed to create a state of high emotion—fear, greed, or urgency—to short-circuit logical thinking. The goal is to create a "cognitive tunnel" where a victim's focus is so narrowed by panic or excitement that they ignore the obvious security warnings their banking app might display.
These psychological plays follow common scripts:
* The fear tactic: "Your electricity will be cut in 2 hours if you don't pay this pending ₹10 bill." This creates panic, rushing you to act without thinking.
* The greed tactic: "You have won a ₹5,000 reward for using UPI; click here to claim." The allure of a prize can make you lower your guard and click a malicious link.
* The authority tactic: "A parcel in your name contains illegal items; speak to this 'police officer' to clear your name." Impersonating an official creates intimidation and a sense of helplessness.
By manipulating emotions, fraudsters convince people to willingly perform actions they would never consider in a calm, rational state.
Technology can provide the locks, but social engineering often tricks the user into handing over the keys.
3. Your SIM Card Can Be a Bigger Target Than Your Password
In one of the most devastating forms of digital fraud, criminals don't need your password—they just need control of your phone number. "SIM Swap Fraud" is a sophisticated attack where scammers use fake ID proofs or social engineering with the telecom provider to obtain a duplicate SIM card for your mobile number.
The first sign of this attack is often innocuous: your phone suddenly loses its signal. But by then, it's too late. The fraudster has activated a duplicate SIM, and your original one is now dead. They now have complete control of your phone number and, more importantly, all incoming messages. This includes the one-time passwords (OTPs) sent by your bank for transaction authorizations and password resets. With your OTPs in hand, the scammer can easily reset your net-banking passwords and gain complete access to your financial accounts, often emptying them before you even realize what has happened.
4. The Danger Hiding in Plain Sight: Search Results and QR Codes
Scammers weaponize the very tools we trust to find information and make payments. With "Search Engine Poisoning," fraudsters plant fake customer care numbers for banks or airlines in search results. This tactic preys on a user’s state of distress; when you are in a panic to resolve an issue, you are more likely to trust the first number you find and follow the instructions of the "agent" on the other end.
Similarly, "QR Code Manipulation" turns a symbol of convenience into a trap. Scammers may physically replace a merchant's QR code with their own or, more commonly, send you a fraudulent QR code via WhatsApp claiming it is for a "Cashback." Scanning these malicious codes can either trigger an automated payment authorization to the scammer or redirect your browser to a phishing website designed to steal your credentials. As a final check, always verify the merchant name that appears on your UPI app screen before you hit 'Proceed.'
Conclusion:
"Your Best Defense is Awareness"
As we move deeper into a cashless economy, it is clear that security is a shared responsibility. While technology provides the secure infrastructure, the user is the final and most critical line of defense. The modern scammer targets human behavior, not technical flaws.
Understanding the psychology behind these scams is how you turn from a potential victim into a vigilant guardian of your own finances. By treating unsolicited requests with skepticism and internalizing the simple security rules, you take back control. You transform awareness from a passive defense into an active weapon.
In the digital world, awareness is your best antivirus.
Here is a brief video overview of my blog :
