UPI Fraud Hotspots: Simple Safety Steps

UPI frauds are evolving fast — and so is RBI’s response. Here’s where scams are most common in 2025, and what simple steps every user can take to stay secure.

Why UPI Fraud Keeps Rising in 2025

UPI has made digital payments seamless — but that convenience has attracted new types of scams. In 2025, as India crossed over 17 billion UPI transactions monthly, fraudsters have shifted from large-scale hacks to targeted social engineering attacks on ordinary users.

According to Upi Fraud Prevention Framework, fraud cases often rise during festive and sale seasons when users transact more frequently. RBI’s Financial Intelligence Unit notes that most incidents stem not from system flaws, but from users being tricked into approving fake requests or scanning malicious QR codes.

Simply put, UPI remains secure — but human error is now the biggest vulnerability. The faster India goes cashless, the more awareness becomes its frontline defense.

Insight: UPI frauds don’t hack systems — they hack trust.

Where India’s UPI Fraud Hotspots Are Emerging

While UPI use is nationwide, RBI’s fraud heatmap shows higher case density in urban and semi-urban clusters where digital payments grow fastest. Based on data under Rbi Upi Security Measures, these hotspots are being closely monitored in 2025.

Top UPI fraud hotspots in India:

Mumbai & Delhi NCR: High-volume UPI use combined with sophisticated QR scams targeting small vendors.
Bengaluru: Phishing and fake “tech support” refund requests using social media ads.
Ahmedabad & Jaipur: Fraudulent UPI collect requests sent through fake e-commerce portals.
Patna & Lucknow: Scam calls from imposters posing as bank KYC agents.
Hyderabad & Pune: Fake merchant links shared via messaging apps and community groups.

Tier-2 and Tier-3 cities now account for nearly 45% of UPI-linked complaint volumes. NPCI has launched state-level awareness campaigns with police and banks to improve reporting speed and recovery timelines.

Tip: Most UPI scams begin with a message, not an app — stay alert before you click or scan.

Common Tricks Scammers Still Use

Fraudsters are adapting fast — creating more believable scams that mimic genuine banking or merchant behavior. As Qr Code Fraud Awareness highlights, over 70% of digital payment frauds in 2025 involved QR code tampering or collect request manipulation.

Here are the most common UPI fraud types this year:

Fake refund requests: Scammers send a UPI collect request under the name “Refund Dept” or “Customer Care.”
QR code swaps: Fraudsters replace printed merchant QR codes with fake ones at shops or delivery points.
App clones: Lookalike apps on app stores mimic official UPI brands like BHIM or Paytm.
Phishing links: Fake URLs promising cashback or rewards redirect users to malicious pages.
Call-based KYC fraud: Victims are tricked into sharing OTPs or PINs by callers posing as bank representatives.

While banks and UPI apps are deploying stronger AI detection tools, scams often succeed when users act in haste. Fraudsters count on confusion — and that’s where simple precautions make the biggest difference.

Insight: UPI safety isn’t about new tech — it’s about slowing down for two extra seconds.

Simple Safety Steps for Everyday Users

Even with rising fraud cases, protecting yourself on UPI is straightforward. Following RBI’s and NPCI’s user protection rules under User Digital Safety Checklist, small daily habits can drastically lower your risk.

Follow these simple safety steps:

Never approve unknown requests: Verify every UPI collect notification before confirming.
Double-check QR codes: Always scan merchant QRs freshly — avoid printed or faded ones.
Don’t share UPI PINs or OTPs: Banks or NPCI never ask for them, even during refunds.
Use official apps only: Download from trusted app stores; avoid links in messages.
Turn on alerts: Enable SMS and in-app notifications for every transaction.
Report instantly: If defrauded, report to your bank and file a complaint via the Helpline 1930 within 24 hours.

For Tier-2 and Tier-3 users, RBI has also introduced voice-enabled safety tutorials in local languages within popular UPI apps — helping first-time users spot fraud early and report confidently.

Tip: Your best security tool is awareness — the moment you pause, the scam loses power.

UPI’s trust depends on how safely India uses it. As more cities go digital, RBI’s layered fraud-monitoring and user education together will keep UPI not just fast — but truly secure for everyone.

Frequently Asked Questions

1. What are UPI fraud hotspots in India?

Cities like Mumbai, Delhi, Bengaluru, and Jaipur report the highest number of UPI-related scam complaints in 2025.

2. How do most UPI frauds happen?

Through fake collect requests, QR code swaps, or phishing links that trick users into authorizing payments.

3. How can I check if a UPI request is genuine?

Look for verified merchant tags and always read the payment purpose before approving any request.

4. What should I do if I fall victim to a scam?

Immediately report the transaction to your bank and call the national helpline 1930 for complaint registration.

5. Is UPI still safe to use?

Yes. UPI is secure — frauds usually happen due to user error, not system flaws. Staying alert is the key.