UPI online fraud: No cases of ‘Jumped Deposit’ scam, NPCI reports

UPI online fraud: Regarding recent media reports on an alleged new online scam referred to as the 'Jumped Deposit' Scheme, the National Payments Corporation of India (NPCI) has asserted that no instances of the 'Jumped Deposit' were reported on the Unified Payments Interface (UPI) platform.

As per media reports, there have been instances of a deceptive scheme known as the ‘Jumped Deposit’ scam. This scam is said to be associated with the UPI platform, where users may face financial losses due to unauthorised transactions that occur when accessing UPI or banking applications.

What is the Jumped Deposit Scam?

This scheme involves perpetrators depositing a small amount of money into the target's bank account using UPI. Subsequently, the fraudster contacts the victim requesting a larger sum, often accompanied by a fictitious narrative.

Intrigued by the unexpected deposit, the victim accesses their banking application and inputs their UPI PIN to confirm the balance. The fraudster then submits a bogus payment request. Upon the victim approving the payment by inputting their PIN, the fraudster pockets the difference between the initial deposit and the requested larger amount.

In response, NPCI emphasised that these descriptions are misleading and have caused undue concern among users. “We would like to clarify that no instances of fraud, as described in the articles on ‘Jumped Deposit’ Scam, have been observed on the UPI platform,” said NPCI in a statement. 

Key points

User Approval Required: Transactions necessitate user approval. Merely accessing a UPI or banking application does not automatically trigger a transaction. Users must actively proceed to the payment request and specifically select the ‘pay’ option. This step mandates entering a UPI PIN, without which transactions cannot progress.

User-Controlled Transactions: UPI functions as a device-centric payment network that securely associates the payment account with the user's designated mobile number and device. This measure guarantees that only the user can initiate transactions or withdrawals. External entities cannot directly solicit or withdraw funds from the user’s account without user intervention.

Distinct Transaction Authorisation: Even for balance inquiries, inputting the UPI PIN is essential. This action does not approve withdrawals or payment requests, as these operations are considered separate transactions that necessitate explicit user consent.

The NPCI has highlighted the strong safety protocols and strict regulatory measures that support UPI transactions. With its real-time capabilities and interoperability, UPI has not only streamlined digital payments but also greatly increased their usage in India.

NPCI has confirmed that UPI comes equipped with robust security features, guaranteeing the platform's dependability and safety. Users are urged to continue utilising UPI with confidence, as its advanced safeguards make it a secure option for digital transactions.

How to stay safe

Be cautious when communicating with unknown contacts: Avoid engaging with unfamiliar numbers that request personal information through calls or messages. Remember, your bank will never ask for sensitive details over the phone or via text.

Understand the process of receiving money: Receiving funds should not involve sharing a PIN. Be wary of potential misuse of the 'request money' feature by fraudsters, and refrain from disclosing your PIN in such scenarios.

Exercise discretion with payment requests: If you receive a payment request from an unfamiliar source, it is advisable to decline it. Clicking 'Pay' could result in transferring funds to a fraudster instead of receiving them.

Securely download apps from reputable sources: Utilize legitimate platforms such as the Google Play Store or Apple App Store when downloading UPI apps. Avoid counterfeit apps that mimic authentic banking applications.

Establish robust and confidential UPI PINs: Set a strong and frequently updated UPI PIN. Refrain from sharing your PIN with anyone under any circumstance.