Telangana: Fake UPI Apps Put People’s Trust in epayments in Risk

Hyderabad: A customer arrived at a shop in Koti to purchase a product. The shopkeeper said the product costs Rs 150, and the customer whipped out his phone, scanned the UPI QR code, and within seconds showed the shopkeeper a payment completed screen. The shopkeeper even heard the payment completion alert, so he believed the customer and gave the product. At the end of the day, the shopkeeper realised the money was never credited into the bank account.

This is the new scam businesses and enterprises are facing, where people are using fake UPI payment apps bought from shady dealers on Telegram. These apps trick businesses into thinking they have received payments when no money has been transferred.

The fake apps are designed to look like genuine UPI payment apps. When a customer uses one of these fake apps, it shows that the payment has been completed. However, in reality, no money is moved from the customer’s account to the business. This leaves businesses out of pocket while they believe they have been paid.

The fake apps don’t just have a payment completion feature, but also have features of showing fake transactions, and even fake bank balances, which can be used by the scammers to prove their legitimacy.

These apps also give out a fake audio confirmation of a payment completion, to imitate the audio coming from the UPI soundboxes businesses use. Many businesses mistake this sound for the one from their genuine UPI soundbox, further convincing them that the payment has been made.

This scam is spreading fast, with thousands of people reportedly using these fake apps. The ease of getting these apps from Telegram, a popular messaging platform, has made it simple for scammers to trick businesses.

Small businesses are particularly at risk. Many rely on UPI payments for their daily transactions and do not have the resources to verify each payment thoroughly. The loss of funds from these fake transactions can have a devastating impact on their finances.

These apps are extremely easy to get into people’s hands as well. A simple search online provides a list of tens of websites providing the app’s APK files which can be downloaded and used by users.

If this issue continues to grow, it could lead to a major financial disaster. Businesses and customers alike must stay alert and report any suspicious activities to the authorities.