Digital transaction fraud: Five security habits that actually work

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UPI transaction fraud is growing rapidly in India, not so much because of defects in the system but to a great extent due to focused social engineering attacks, coupled with user complacency. Here is an explanation of why that risk is increasing, followed by five practical habits you should instil to safeguard yourself.

Why the risk is increasing

The convenience and scale of UPI make it a natural target. Thousands of transactions occur every minute, with users frequently approving payments on mobile screens. That's led to fraudsters exploiting trust rather than weakness in the system. Some other common tactics include sending fake UPI collect or payment requests, malicious QR codes, impersonation of bank or customer-care staff, SIM-swap attacks, and luring users to install remote-access apps.

Regulators are acting: the National Payments Corporation of India has now ordered that starting from June 30, the user will see the beneficiary's name first before completing a UPI payment; this move is expected to reduce mistaken transfers to fraudsters.

1. Always verify the beneficiary name before paying

Before confirming any UPI transaction, ensure that the name reflected is the one you intend to pay. This is more important when you either scan a QR code, click on a link, or accept a request, but don't initiate it yourself. Since June 2025, UPI rules require the receiver's name to be shown to the payer; use this as an intentional habit to detect fake requests.

2. Keep your UPI/Bank app updated and permissions minimal

Don't ignore updates-many of them patch security vulnerabilities in apps. Ensure that you install updates from official stores, such as Google Play and the Apple App Store. Also, review the permissions granted to your UPI application (camera, contacts, etc.) and disable any not needed. If ever you install a "support tool" at a stranger's request--like remote access--uninstall it immediately. Many frauds start with users giving out access without realizing it.

3. Be careful with QR codes and payment links

Scammers exploit QR codes by presenting them as “receive money” prompts, but scanning actually debits your account. Only scan the codes you trust, from merchants or registered portals. If you receive a link to receive a payment via chat or any social-media or messaging app, first examine the URL carefully (avoid shortened links) and do not proceed unless you initiated the transaction or trust the sender.

4. Employ strong device security and monitor transactions frequently

Implement a robust lock screen and authentication of UPI applications via PIN or biometric. Your phone is like visiting your bank branch. Check your bank and UPI transaction history every day or once every two days, flagging any unfamiliar transactions. In case of a lost/stolen device, report it immediately to the bank, freeze the UPI application, and call the cybercrime helpline. Monitoring catches the problems early.

5. Never disclose your PIN/OTP, and don't make hurried payments.

No bank or UPI app will ever ask for the UPI PIN, OTP, or full mobile banking credentials. If somebody claims to represent your bank and insists on those, raise a red flag. If you must make the payment under some pressure-for example, a "limited-time offer" or "refund processing"-stop and review the request. Fraudsters work on your urgency and panic. A minute taken to verify can save thousands of rupees.

UPI remains a secure and highly efficient payment system — the majority of frauds are due not to architecture but to user error, social engineering, weak device security or impulse payments. The habits above aren't complicated, but they work. Treat your phone and UPI app with the same attentiveness you give to your bank account. If you build these five habits into your routine, you'll significantly reduce your exposure to the rising tide of payment fraud.