How cybercriminals target UPI payments and what's being done to stop them

In today's digital age, the Unified Payments Interface (UPI) has revolutionised the way Indians handle money, making transactions quick and easy. However, this convenience also attracts cybercriminals looking to exploit any vulnerabilities. Understanding how these fraudsters operate and the steps taken to combat them can help users protect their finances.

How Cybercriminals Target UPI Payments

Cybercriminals use several methods to target UPI users:

Phishing: Fraudsters send fake messages that mimic banks or payment services. These messages often contain links to counterfeit websites where users unknowingly enter their sensitive information, which criminals then use for unauthorized transactions.

Vishing (Voice Phishing): Here, scammers call individuals, posing as bank officials or customer service agents. They create a sense of urgency to trick users into sharing their UPI PINs or other critical data.

Remote Access Scams: Users are tricked into downloading apps that give scammers remote access to their devices. Once installed, these apps can capture UPI PINs and other login credentials directly.

SIM Swapping: Criminals can hijack your mobile number by deactivating your SIM and transferring your number to a new SIM in their possession. This allows them to bypass OTPs ( one-time passwords) required for UPI transactions.

What's Being Done to Stop Cybercriminals

To counter these threats, several robust measures have been implemented:

Enhanced Security Protocols: UPI platforms are equipped with multiple layers of security, including end-to-end encryption. This means that the data sent from one user to another is converted into a secure code that is nearly impossible to decode.

Regular Monitoring and Audits: UPI service providers conduct regular monitoring and audits to detect and respond to fraudulent activities quickly.

Consumer Awareness Campaigns: Banks and payment platforms frequently run awareness campaigns educating users on the importance of never sharing their UPI PIN or responding to unsolicited requests.

Two-Factor Authentication: This adds an extra layer of security by requiring not just the UPI PIN but also a verification code sent to the user’s phone, making unauthorized access harder.

Legal Framework: The government and financial authorities are continually updating regulations to ensure stringent penalties and swift actions against cyber frauds.

While cybercriminals continue to find new ways to exploit digital payment systems like UPI, the combined efforts of technology, awareness, and regulatory measures are critical in creating a secure environment. As a user, staying informed and cautious is your first line of defense against these digital threats.

The author is the co-founder at MoneyTap and CEO & Co-Founder at Freo.