UPI Users Need Not To Worry, NPCI Issues Clarification On Jumped Deposit Scam, Debunks All Fears
Jumped Deposit Scam: Simply opening a UPI or bank application does not automatically approve a transaction.
Jumped Deposit Scam: The National Payments Corporation of India (NPCI) on Monday addressed recent reports about an alleged “Jumped Deposit" scam, stating that no such fraudulent activity has been identified on the UPI platform.
The clarification came after reports surfaced that cybercriminals are devising an ingenious new scam that preys on unsuspecting UPI users.
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UPI users need not worry as the system has a robust safety mechanism, NPCI said.
NPCI has addressed technical misconceptions;
NPCI stated that simply opening a UPI or bank application does not automatically approve a transaction. For a transaction to occur, the user must navigate to the payment request and explicitly click on the ‘pay’ option to authorise it with UPI PIN. Without this step, the payment will not get processed.
-No external party can directly request or withdraw funds from the user’s account. UPI is a device-based payment system, meaning the payment account is securely linked to the user’s registered number and their specific mobile device. Only the user can initiate transactions or withdrawals, ensuring that others cannot access their funds.
-Inputting the PIN is required even for balance enquiry transactions, and it does not automatically authorise any withdrawal or payment requests which is treated as a separate transaction.
– UPI transactions are backed by robust safety protocols and stringent regulatory measures. UPI’s real-time capabilities and interoperability have not only simplified transactions but have also accelerated the adoption of digital payments.
Background: ‘Jumped Deposit’ Scam
The Tamil Nadu Police had earlier warned users about a scam in which fraudsters trick unsuspecting victims by making unsolicited small deposits and then following up with fake withdrawal requests.
Several reports claimed that cybercriminals deposit small amounts of money into the victim’s bank account via UPI. This seemingly benign credit notification lures victims into checking their payment apps.
Once the victim notices the unexpected deposit, the fraudsters pounce. They send a ‘Collect Money’ request, tricking the victim into entering their UPI PIN for “validation." But this validation is a ruse – instead, it authorizes an unauthorized debit from the victim’s account.
General Tips To Protect Your Money
Immediate Actions to Take If You’ve Been Targeted
If you notice an unusual deposit in your bank account:
- Inform Your Bank: Report the unexpected credit to your bank to verify its authenticity.
- Report the Fraud: Victims must immediately report the scam to the nearest cybercrime police station or the cybercrime portal to help catch these fraudsters.
- National Cyber Crime Reporting Portal: Victims of the scam should act quickly. File a complaint with your nearest cybercrime police station or report the incident on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in). Swift reporting increases the chances of recovering stolen funds and prevents further exploitation.
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