How to Protect Your Bank Account from UPI and OTP Frauds in India

• 

  By Gujju Ticks

  17 May, 2025

Platforms like UPI (Unified Payments Interface) have completely changed how people transact as digital payments have grown in popularity in India. UPI has made things easier, faster, and more convenient. But every technological development brings with it a fresh set of problems, and in this instance, those problems are OTP and UPI frauds.

Online financial frauds targeting users through UPI platforms and OTP (One Time Password) mechanisms have increased in India in recent years, according to recent reports. Fraudsters are always coming up with new and creative ways to defraud unsuspecting people of their hard-earned money.

Whether you use mobile banking, apps like PhonePe, Google Pay, Paytm, or even net banking, this blog will walk you through doable steps to safeguard your bank account against UPI and OTP frauds.

1. Understand How UPI and OTP Frauds Work

Scammers frequently trick you into sharing your UPI PIN or making a payment, which is known as UPI fraud. They might ask you to scan a QR code or send you a link that says "Request Money," which could cause you to unintentionally approve a payment.

Phishing is usually how OTP fraud occurs. Scammers trick users into sharing their OTP by calling or messaging them under the guise of bank employees or service providers. The OTP is then used to carry out illegal transactions.

Common Tactics Used:

• Fake customer care calls

• QR code scams

• Fake UPI collect requests

• SIM card swap frauds

• Phishing messages and emails

• Malware through apps or websites

2. Always Verify the Source

Never divulge your OTP, CVV, UPI PIN, or password if you get a call posing as from your bank, telecom provider, or even a courier service.

"We never ask for your OTP or PIN over phone, email, or SMS," Indian banks make it clear.

Check the source before replying to a questionable message or clicking on any payment links. For contact details, visit the official websites or applications. If it looks urgent, it's probably a scam; con artists incite panic to get you to take quick action.

3. Never Share OTP or UPI PIN with Anyone

The key to your vault is your OTP (One Time Password). Fraudsters can use your bank account to start transactions after it has been shared.

In the same way, you should never divulge your UPI PIN. Nobody should ever request it, not even bank employees.

Golden rule: If someone asks for your OTP or UPI PIN, it’s a scam.

4. Avoid Downloading Unknown Apps

By downloading unknown apps that are sent to them via SMS links or WhatsApp, many people fall into traps. Despite their seemingly innocuous appearance, these apps frequently contain malware or spyware that records your screen or collects private information.

Always download apps from reliable stores, such as the Apple App Store or Google Play Store, and before installing, read reviews and ratings.

5. Use Trusted Payment Apps Only

Stick to verified UPI-enabled apps like:

• Google Pay

• PhonePe

• Paytm

• BHIM

• Amazon Pay

Steer clear of third-party apps that aren't on the NPCI website. Always make sure the app supports user verification and KYC (Know Your Customer).

6. Enable App Lock and Two-Factor Authentication

You can now set an app lock with your fingerprint or passcode in the majority of UPI apps. This provides an additional degree of security.

Additionally, confirm that two-factor authentication (2FA) is enabled on both your email address and bank account. Even in the event that your password is compromised, this aids in preventing unwanted access.

7. Regularly Check Bank Statements and SMS Alerts

Pay attention to your email notifications, SMS alerts, and bank statements. Report any unauthorized transactions right away to your bank and the cybercrime portal at https://cybercrime.gov.in.

Quick reporting often helps in freezing the transaction or recovering part of the lost amount.

8. Report Fraud Immediately

If you’re a victim of a UPI or OTP fraud, don’t panic. Immediately:

• Contact your bank’s 24x7 helpline

• Lodge a complaint on Cyber Crime Portal: cybercrime.gov.in

• File a police complaint if needed

• Contact NPCI at dispute@npci.org.in in case of UPI-related issues

If the complaint is filed within the first 24 hours, the majority of banks and authorities act promptly.

9. Educate Family Members, Especially Elderly and Children

Teenagers and seniors in many Indian homes use the internet frequently, but they might not be aware of it. Spend some time teaching them the fundamentals of digital hygiene:

• Never share OTP or PIN

• Avoid clicking on unknown links

• Be cautious with online transactions

This step alone can prevent numerous frauds at a family level.

10. Use Secure Internet Connection

Steer clear of public Wi-Fi when conducting online transactions. These networks are susceptible to hacker monitoring and are frequently insecure.

Use a secure, private connection at all times, ideally your home or mobile network. Make sure your phone's antivirus software is up to date as well.

Final Thoughts

UPI is at the center of the rapidly expanding digital India. But you have control over your safety. Your digital wallet and banking apps need to be secured, just like your house is before you leave.

You can successfully safeguard your bank account against UPI and OTP frauds by remaining vigilant and adhering to the straightforward advice provided above. Keep in mind that scammers take advantage of your ignorance, but you can stay one step ahead of them if you are aware.

FAQs

Q1: If I unintentionally shared my OTP, what should I do?

Call your bank's helpline right away, block your account or card if necessary, and report the fraud to cybercrime.gov.in.

Q2: Is it possible for banks to reimburse funds lost due to UPI fraud?

Certain banks might provide a conditional refund if the complaint is made promptly and confirmed. Consult your bank's grievance redressal policy at all times.

Q3: How can I determine whether a UPI request is authentic?

Never approve a "Request Money" notification until you are absolutely certain, confirm the UPI ID, and look for warning signs like urgency.