UPI Overpayment Scam – Fraudsters Trick Victims into Returning Excess Money

Background: A new variant of UPI (Unified Payments Interface) scams has surfaced, where fraudsters manipulate individuals into returning a large sum of money after they send an unsuspecting victim a smaller amount as an overpayment. This scam targets both consumers and merchants, leveraging trust in digital payment systems to exploit them financially.

In this particular instance, fraudsters send a small amount of money, often as low as Rs 200, to the victim’s UPI account. Then, they trick the victim into transferring a much larger sum, sometimes as high as Rs 20,000, back to them, claiming that the original payment was an error or overpayment.

Incident Overview: The scam begins when the fraudster sends a small, seemingly innocent amount like Rs 200 to the victim’s UPI account. Once the money is received, the fraudster contacts the victim, explaining that the transaction was a mistake or a result of an accidental overpayment.

The fraudster claims that the victim needs to return the excess amount — in this case, Rs 20,000 — because of the overpayment. To make the scam appear more legitimate, the fraudster may also send false UPI payment receipts or screenshots of the transaction to further convince the victim.

Scam Execution:

• Step 1 – Initial Payment: The fraudster sends a small sum of money to the victim’s UPI account (typically Rs 200 or a similar insignificant amount).
• Step 2 – The Request: Shortly after, the victim receives a message or call from the fraudster, claiming the previous payment was a mistake, often with the claim of “accidentally transferring” more money than intended.
• Step 3 – Pressure to Return Funds: The fraudster convinces the victim that they need to refund the overpaid amount — often Rs 20,000 or more — using UPI transfers. To create urgency, they may provide a sense of guilt or use manipulative language, such as “Your account will be blocked,” “You’ll be reported,” or “It’s a security issue.”
• Step 4 – Victim’s Loss: The victim, trusting the fraudulent claim, initiates the transfer of a large sum back to the scammer’s UPI ID. Once the victim transfers the money, the fraudster disappears, and the victim realizes they’ve been duped.

Case Example: In one recent incident, a victim received Rs 200 in their UPI account. The scammer quickly contacted the victim, claiming that they had accidentally sent the money and needed it refunded immediately. The victim, thinking it was a genuine mistake, was convinced to send Rs 20,000 back via UPI.

The fraudster then blocked the victim after the payment was made. By the time the victim realized they had been scammed, the fraudster had already withdrawn the funds, and the victim had no means of recovering the money.

Investigation and Law Enforcement: Upon reporting the scam, law enforcement agencies initiated an investigation. However, these scams are particularly difficult to trace, as they often involve temporary or fake UPI IDs. Additionally, fraudsters may use anonymous numbers or spoofed caller IDs to communicate with the victims, making it harder for authorities to track them down.

How to Protect Yourself from UPI Overpayment Scams:

• Never Trust Unsolicited Payments: If someone unexpectedly sends you money, do not assume it’s a legitimate transaction. Verify the source before taking any action.
• Avoid Returning Money Without Verification: If someone claims to have overpaid you, do not make any refunds before verifying the situation. Contact the payment platform (e.g., Google Pay, PhonePe, etc.) or the person directly through an official channel.
• Look for Red Flags: Watch out for urgent requests, especially those demanding immediate refunds or claiming “account issues” that need to be resolved urgently.
• Contact Authorities: If you suspect you’ve received a fraudulent transaction, report it immediately to the relevant payment platform and local cybercrime authorities.
• Educate Yourself and Others: Raising awareness about these scams is essential, particularly among those who may be less familiar with digital payment systems.

Conclusion: This case illustrates a sophisticated scam technique that exploits the convenience of UPI payments. It preys on the victim’s trust in digital transactions and the urgency created by fraudsters, making it an effective but harmful method for criminals to defraud unsuspecting individuals.

To safeguard against such scams, individuals should be aware of the tactics fraudsters use and exercise caution with any unexpected or unsolicited digital payment. Increased awareness and vigilance are the best defenses against falling victim to such scams.