UPI refund to digital arrest scam, here are some online scams you need to be aware of

The internet has revolutionised our lives, offering convenience and connectivity at our fingertips. With the rapid adoption of digital payments in India, fraudsters have evolved their tactics, devising new scams to exploit the growing user base.

Several online scams have been reported in India over the past few months, from the standard UPI refund scams to unbelievable scams such as the digital arrest scams.

Here's a look at some prevalent online scams and how to protect yourself:

UPI refund scam

UPI refund scam is one of the most common online scams these days. It involves a person sending the victim money and then claiming that it was accidentally sent. The scammer then asks the victim to refund the money, often using excuses such as emergency hospitalisations or other important expenses. If the victim refunds the money, the scammer then contacts their bank and reverses the initial transaction, resulting in the victim losing money.

How to protect yourself from UPI refund scams:

• Do not resend the money if someone claims they have “accidentally” sent you money.
• If you receive money from an unknown source, contact your bank immediately.
• If someone says they have sent you money, ask them to contact their bank to get a refund.

Phishing scams

Phishing scams have been around for a long time, but they have become more sophisticated in the digital age. Fraudsters often impersonate reputable companies, sending fake emails, messages, or even websites that look almost identical to the real ones. These messages typically contain a sense of urgency—such as a warning that your account is about to be blocked or that you've won a prize.

Once you click on the link, you’re directed to a fake site that prompts you to enter your personal information, including login credentials and payment details. This data is then used to steal money or compromise your identity.

How to protect yourself from phishing scams:

• Be sceptical of unexpected messages or emails, even if they seem to come from trusted sources.
• Check the URLs of websites carefully. Scammers often use misspelt URLs that are designed to look legitimate.
• Never share your personal or financial information without verifying the authenticity of the request.

SIM Swap scam

As the name suggests, a SIM swap scam basically involves the scammer getting access to your SIM, either with the help of someone at the mobile service provider or through other means.

The scammer often convinces the network provider to activate a SIM card they possess, gaining control of the victim’s phone number. This allows the scammer to gain access to all calls and text messages that the victim may receive, which is important in this day and age where all accounts are linked to your phone number.

Once the scammer gets access to the victim’s phone number, they use it to gain access to their bank account and steal money.

How to protect yourself from SIM swap scam:

• If your SIM stops working, immediately inform the telecom operator.
• Make use of a SIM lock, which prevents your SIM from being used on another smartphone without entering a password.
• Avoid sharing personal information online, especially things which can make it easier to crack your passwords.
• Keep track of your accounts and report any unauthorised transactions.

Online Shopping Scams

Beware of fake online stores offering unbelievable deals. These websites might steal your payment information or deliver counterfeit or non-existent products. These websites often advertise unbelievable deals to lure in unsuspecting customers, either with the intention of stealing their data or selling substandard products.

How to stay safe:

• Shop from reputable websites. Look for customer reviews and secure payment gateways.
• Be cautious of prices that seem too good to be true.
• Use a credit card for online purchases. It offers better fraud protection than a debit card.

The "Digital Arrest" scam

In this chilling scam, fraudsters impersonate law enforcement officials. They may claim you're involved in illegal activities and threaten you with a "digital arrest" or legal action. To avoid this, they'll demand payment or personal information.

Victims are often coerced into making payments via UPI or other digital means. The sense of urgency and fear of legal consequences often compels people to act without verifying the legitimacy of the claim.

How to avoid:

• Know your rights: Law enforcement agencies will never demand payment or personal information over the phone or online.
  
• Verify identities: If you receive such a call, hang up and directly contact the relevant authorities to verify the claim.

KYC scam

With the increased demand for KYC (know your customer) updates across digital platforms, fraudsters are taking advantage by posing as bank or telecom representatives. They often claim that your account will be blocked if you don’t update your KYC details immediately.

Victims are then asked to share their Aadhaar number, PAN, or other personal details via a fraudulent link or over a call. In some cases, they also ask users to complete the process through UPI apps, stealing money from their accounts during the process.

How to avoid it:

• Banks and financial institutions never ask for personal details over a call, message, or link.
• Always update KYC details through official channels, like the bank’s app or website.
• If you receive a suspicious KYC request, report it to your bank’s customer service immediately.

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