The National Payments Corporation of India (NPCI) has issued a reassuring statement to UPI (Unified Payments Interface) users, addressing concerns over the emerging 'Jumped Deposit' scam. The NPCI has clarified that no incidents of fraud, as described in the scam, have been observed on the UPI platform.

What is the ‘Jumped Deposit’ Scam?

The 'Jumped Deposit' scam involves scammers transferring small amounts of money to a victim’s bank account. The victim, assuming the transfer is a mistake, is then targeted with multiple collection requests for refunding the amount. The scam escalates when victims, instead of using the UPI app, follow fake links for bank balance verification or refunds. If they enter their UPI PIN in these fraudulent links, they risk losing money. Scammers may also pressure victims to authorise larger UPI collection requests.

NPCI’s Clarification on UPI Transactions

In its statement, NPCI reassured users by outlining important safeguards within the UPI system:

1. Transactions are not automatically approved upon opening a UPI account or banking app. For a transaction to be completed, the user must manually click the ‘pay’ option and authorize the transaction with their UPI PIN. This step is mandatory for successful payments.

2. No external party can directly request or withdraw funds from a user’s account. UPI payment accounts are securely linked to the user's registered number and mobile device, and only the user can initiate transactions or withdrawals.

3. Even for a balance enquiry transaction, entering the UPI PIN is required.

The NPCI also urged users to continue using UPI with confidence, emphasising its robust security features that make the platform both secure and reliable.

“We encourage users to continue using UPI with confidence, assured by its robust, built-in security features that makes it both secure and reliable,” the organisation said.

UPI Fraud Trends

The rise of UPI frauds has been a growing concern. The Ministry of Finance recently revealed that UPI fraud cases have surged by 85% in FY2024, reaching 13.42 lakh incidents, up from 7.25 lakh in FY 2023. The total monetary loss from these frauds amounted to ₹1,087 crore, compared to ₹573 crore in the previous fiscal year.

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NPCI shuts down 'jumped deposit' scam fears, reaffirms UPI's robust security