10 Common UPI Scams in India in 2026

1. Fake UPI Collect Request Scam

What it is: A fraudster sends a UPI collect request - a formal payment demand - disguised as a refund, reward, or official payment.

How it works: The victim receives an unexpected collect request on their UPI app. The fraudster, posing as a bank, platform, or customer care agent, tells the victim to "approve the request to receive money." Approving it debits the victim's account - not credits it.

Warning sign: Any collect request you did not initiate yourself. You never need to approve a request to receive money on UPI.

2. UPI QR Code Scam

What it is: Fraudsters exploit the common misconception that scanning a QR code and entering a PIN is how you receive money on UPI.

How it works: A fraudster - often a fake buyer on an online marketplace - sends a QR code to a seller, saying "scan this to receive your payment." When the seller scans the code and enters their UPI PIN, money is debited from their account, not credited.

Warning sign: You are asked to scan a QR code to receive money. Scanning a QR code initiates a payment from you. You never enter your UPI PIN to receive money.

3. Fake UPI Payment Screenshot Scam

What it is: A fraudster sends a fabricated payment confirmation screenshot to a merchant or seller to claim payment was made.

How it works: The fraudster edits a legitimate UPI success screenshot or generates a fake one and sends it as proof of payment before collecting goods or services. No actual transaction has occurred.

Warning sign: A buyer provides only a screenshot as payment proof. Always verify the transaction inside your bank account or UPI app - not from a screenshot.

4. Cashback and Reward Scam

What it is: Fraudsters promise cashback, lottery winnings, or rewards that require the victim to first approve a transaction or share credentials.

How it works: The victim receives a message or call claiming they have won a reward or are eligible for a cashback. To "claim" it, they are asked to click a link, enter their UPI PIN, or approve a collect request - all of which result in money being debited.

Warning sign: Any offer that requires you to approve a UPI payment, enter your PIN, or share your OTP to receive a benefit.

5. Fake Customer Care Scam

What it is: Fraudsters impersonate bank or payment app customer care representatives, often using numbers listed on fake websites or obtained through search engine manipulation.

How it works: A victim searching for a bank's customer care number finds a fake number in search results. The fraudster who answers asks for OTP, UPI PIN, account details, or requests remote access to "resolve the issue."

Warning sign: Any customer care representative who asks for your UPI PIN, OTP, or asks you to install an app. Use only the official number on the back of your debit card or the bank's verified website.

6. UPI Refund Scam

What it is: Fraudsters posing as merchants, platforms, or banks claim to initiate a refund but manipulate the victim into authorising a payment instead.

How it works: The victim is told they are receiving a refund for a failed transaction or overcharge. They are sent a collect request or link and told to "approve to receive the refund." Approving debits their account.

Warning sign: A "refund" that requires you to approve a UPI request or enter your PIN. Refunds are credited automatically - they never require your authorisation.

7. Fake Investment and Trading Payment Scam

What it is: Fraudulent investment platforms - particularly WhatsApp or Telegram groups promising high returns - use UPI to collect deposits.

How it works: Victims are added to groups run by fake stock traders, crypto advisors, or "wealth managers." Initial small profits are shown (sometimes fabricated) to build trust. Victims then transfer larger amounts via UPI to what they believe are investment accounts. Withdrawals are never processed.

Warning sign: Any investment opportunity promoted through WhatsApp, Telegram, or social media that asks you to transfer funds via UPI to an individual's account rather than a SEBI-registered entity. The I4C has flagged these as the fastest-growing high-value cybercrime category in India in 2025-26.

8. Fake KYC and Bank Verification Scam

What it is: Fraudsters send urgent messages claiming that a bank account or UPI ID will be blocked unless the recipient immediately completes KYC verification.

How it works: The victim receives an SMS, WhatsApp message, or call stating their account faces imminent closure. They are directed to a phishing link, asked to share Aadhaar/PAN details, or told to call a fake number - where they are asked for OTP and account credentials.

Warning sign: Any message creating urgency around KYC that directs you to a link or unfamiliar number. Banks send official KYC communications through registered channels and never ask for OTP over a call or link.

9. Remote Access and Screen-Sharing Scam

What it is: Fraudsters persuade victims to install remote-access applications - such as AnyDesk or TeamViewer - under the pretence of technical assistance.

How it works: A fake bank representative or customer care agent tells the victim they need to install an "assistance app" to resolve a payment issue. Once installed, the fraudster gains full visibility of the victim's screen - including UPI app, banking app, and OTPs received via SMS — and can initiate transactions.

Warning sign: Any request to install an app to receive support, claim a refund, or fix a payment issue. Legitimate banks never ask you to install third-party remote access software.

10. Impersonation and Urgent Payment Scam

What it is: Fraudsters impersonate relatives, employers, government officials, or bank representatives and create urgency to force immediate payment.

How it works: The victim receives a call or message from someone claiming to be a family member in distress, a government official threatening action, or a delivery executive demanding payment. The urgency prevents the victim from verifying the identity. In 2025, senior citizens lost more than ₹20 billion through impersonation and coercion-based scams, according to MHA data.

Warning sign: Any unexpected, urgent request for payment - especially one that discourages you from verifying through other means. Always call the person directly on a known number before sending money.

Quick Reference: 10 UPI Scams at a Glance