The Rise of UPI Fraud in India

Imagine waking up to a notification that your bank account has been debited without your consent. You check your UPI app and realise you’ve fallen victim to UPI Fraud. With digital payments becoming the lifeblood of India’s economy, platforms like Google Pay, PhonePe, and Paytm have seen explosive growth. Unfortunately, this rise has also brought a surge in online scams.

Every month, thousands of Indians suffer losses due to fraudulent transactions, phishing attempts, and fake customer care numbers. This article guides you through immediate steps to recover lost funds, outlines the legal remedies available under Indian law, and shows how to protect yourself from future scams. Whether you are an individual or a business, knowing your rights and acting swiftly makes all the difference.

Understanding UPI Fraud Under Indian Jurisdiction

UPI Fraud involves unauthorised transactions through the Unified Payments Interface system. Fraudsters use tactics such as phishing, fake QR codes, fraudulent payment links, and impersonation to steal money. Indian law addresses these crimes through multiple frameworks:

• Information Technology Act, 2000

1. Section 66C (Identity Theft)
2. Section 66D (Cheating by Personation using a Computer Resource)

• Indian Penal Code (IPC)

1. Section 420 (Cheating)
2. Section 406 (Criminal Breach of Trust)

• RBI Guidelines on digital transactions and grievance redressal.

Jurisdiction to file complaints lies with your local police station, Cyber Police, and the RBI-appointed Banking Ombudsman.

1. Common Problems Faced by Victims of UPI Fraud

• Delayed Response from Banks: Many victims report that banks delay resolving complaints, eroding trust and increasing stress.
• Lack of Awareness: Victims often don’t know how to escalate matters to cyber police or banking authorities.
• Disputed Transactions: Banks sometimes refuse refunds citing customer negligence or lack of evidence.

2. Real-World Example

In 2024, a Mumbai entrepreneur lost ₹2.5 lakhs after clicking a fake UPI payment link sent via WhatsApp. His initial bank complaint was denied. Only after filing an FIR with Cyber Police and approaching the Banking Ombudsman was his refund processed.

3. Immediate Steps to Take After UPI Fraud

• Block Your UPI and Bank Account Access Immediately

1. Log into your UPI app and disable or block all transactions.
2. Contact your bank’s customer care or visit your branch to stay your account temporarily and prevent further fraud.

• File a Bank Complaint Promptly

1. Use your bank’s grievance portal or visit the branch.
2. Provide all transaction details including transaction ID, date, and time.
3. Get a written acknowledgment of your complaint.

• Report to Cyber Police and Use the National Cybercrime Portal

1. File an FIR at your nearest Cyber Police station.
2. Alternatively, file a complaint online at the National Cyber Crime Reporting Portal.
3. Submit all relevant evidence including screenshots, chat logs, and transaction details.

• Raise a Payment Dispute via Your UPI App

1. Use the app’s “Dispute Transaction” feature.
2. Follow up with the bank and the National Payments Corporation of India (NPCI) if necessary.

• Follow RBI Guidelines for Grievance Redressal

1. RBI mandates banks to resolve complaints within 30 days.
2. If unresolved, escalate the complaint to the Banking Ombudsman under RBI.

3. Legal Remedies Available to Victims

• Filing FIRs under IPC Sections 420 and 406.
• Approaching Consumer Forums for deficiency in banking services.
• Filing Civil Suits to recover lost funds.
• Complaints to the RBI Ombudsman for non-compliance.

4. Documentation Tips

• Keep copies of all complaints, FIRs, and written communications.
• Maintain screenshots of fraudulent transactions and chat histories.
• Preserve any emails or messages exchanged with the bank or scammers.

What to Avoid & When to Seek Legal Help

• Avoid:

1. Sharing OTPs, UPI PINs, or bank details with anyone.
2. Clicking on suspicious links or downloading unknown apps.
3. Delaying bank complaints or cyber police reports.

• Seek Legal Help If:

1. Your complaint remains unresolved beyond 30 days.
2. You face repeated online scams or harassment.
3. You need assistance filing criminal or civil cases.

Tigde Law Firm can assist you in navigating these legal complexities with precision and urgency.

Conclusion: Stay Alert and Act Swiftly

UPI Fraud is a serious and growing problem but victims are not powerless. By acting quickly reporting fraud, filing complaints, and knowing your legal rights you can recover lost funds and deter fraudsters. Vigilance and legal awareness are your strongest defenses.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Laws, procedures, and interpretations may vary across jurisdictions, and outcomes depend on the specific facts of each matter. Please consult a qualified legal professional for personalised advice before making legal decisions or taking any action.

About Tigde Law Firm

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Founded by Sachin Subhash Tigde and Shubhash Tigde, both experienced High Court lawyers in Maharashtra with a legacy of over 45 years and second-generation expertise, the firm has handled more than 5,000 cases. With 50+ in-house advocates across Mumbai, Navi Mumbai, and Thane, Tigde Law Firm is widely regarded as the best law firm in Thane and home to some of the most reliable advocates and lawyers in Thane. Specialising in property and redevelopment matters, RERA compliance, society disputes, divorce, NCLT, civil, criminal, corporate, and IP law, TLF delivers clarity and confidence to clients facing complex legal challenges.

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