How to Block UPI Fraud: A Complete Guide to Protecting Your Digital Payments

Unified Payments Interface (UPI) has revolutionized digital transactions in India and beyond, enabling instant, seamless money transfers between bank accounts using just a virtual payment address. With over 10 billion transactions processed monthly, UPI has become the backbone of India’s digital economy. However, its popularity has also made it a prime target for fraudsters. UPI frauds—ranging from phishing scams and fake payment requests to SIM swap attacks and app spoofing—are rising at an alarming rate. According to the Reserve Bank of India’s annual report, UPI-related fraud cases increased by over 200% between 2021 and 2023. The consequences can be devastating: unauthorized deductions, drained bank accounts, and irreversible financial loss.

Blocking UPI fraud isn’t just about reacting to incidents—it’s about building a proactive, layered defense. This guide provides a comprehensive, step-by-step roadmap to secure your UPI transactions, eliminate vulnerabilities, and stay ahead of evolving fraud tactics. Whether you’re an individual user, a small business owner, or a parent managing family finances, this tutorial equips you with the knowledge and tools to protect your money with confidence.

Step-by-Step Guide to Block UPI Fraud

1. Enable Two-Factor Authentication (2FA) on All UPI Apps

While most UPI apps require a PIN for transactions, many users overlook the importance of enabling additional authentication layers. Two-factor authentication adds a second verification step—typically a one-time password (OTP) or biometric confirmation—before any transaction is authorized. Even if a fraudster obtains your UPI PIN, they cannot complete a payment without access to your secondary authentication method.

To enable 2FA:

• Open your UPI app (Google Pay, PhonePe, Paytm, etc.).
• Navigate to Settings > Security > Two-Factor Authentication.
• Toggle on the option and confirm via SMS or fingerprint.
• Ensure your registered mobile number is current and secure.

Some apps also offer device binding—this ensures transactions can only be initiated from your registered smartphone. Activate this feature if available.

2. Use a Dedicated UPI PIN—Never Reuse Bank or App Passwords

One of the most common mistakes users make is reusing passwords across platforms. If your email or online banking password is compromised in a data breach, fraudsters may attempt to use the same credentials for your UPI PIN. UPI PINs must be unique and unrelated to any other password you use.

Best practices for creating a strong UPI PIN:

• Avoid birthdays, anniversaries, or sequential numbers (1234, 0000).
• Use a mix of numbers that have no personal significance.
• Change your UPI PIN every 3–6 months, even if no suspicious activity is detected.
• Never share your UPI PIN with anyone—not even bank employees or app support.

Most UPI apps allow you to reset your PIN directly within the app using your registered mobile number and bank credentials. Never rely on third-party links or unsolicited calls to reset your PIN.

3. Disable UPI for Unused Accounts and Apps

Many users install multiple UPI apps—Google Pay, PhonePe, Paytm, Amazon Pay, BHIM, etc.—and leave them active even after stopping usage. Each active app represents a potential entry point for fraud. If one app is compromised due to outdated software or weak security, your linked bank account becomes vulnerable.

Take these steps to reduce your attack surface:

• Uninstall UPI apps you no longer use.
• Within each app, go to Settings > Linked Accounts and remove any bank accounts you don’t actively use.
• If you’re not using a particular app for over 90 days, consider deactivating your UPI ID associated with it.
• Use only one primary UPI app for daily transactions and keep others as backups.

Less is more. Reducing the number of active UPI connections minimizes exposure and simplifies monitoring.

4. Activate Transaction Alerts and Real-Time Notifications

Immediate awareness is your first line of defense. Most banks and UPI apps offer SMS or in-app notifications for every transaction. Ensure these are turned on for every linked account.

How to configure alerts:

• Log into your bank’s mobile app or internet banking portal.
• Go to Services > Alerts > Transaction Alerts.
• Select “All Transactions” and ensure SMS and push notifications are enabled.
• Repeat the same for your UPI app’s notification settings.

Set custom thresholds if possible—for example, receive alerts for any transaction above ₹500. This helps you catch small test transactions before larger ones occur.

Pro tip: Turn off “silent mode” for notifications on your phone. Fraudsters often rely on delayed detection. Immediate alerts give you minutes—not hours—to act.

5. Never Click on UPI Payment Links Sent via SMS or WhatsApp

One of the most widespread UPI fraud tactics involves fake payment links. Fraudsters send messages like:

• “Your package is delayed. Pay ₹499 to release it: [shortened link]”
• “You’ve won ₹10,000. Click to claim: [link]”
• “Your UPI ID is suspended. Verify now: [link]”

These links lead to cloned UPI interfaces designed to steal your PIN. Once entered, the fraudster gains instant access to your funds.

How to avoid falling victim:

• Never click on payment links from unknown or unverified senders.
• Always initiate payments manually within your trusted UPI app.
• Check the sender’s number—fraudulent links often come from random or international numbers.
• Hover over links (on desktop) or long-press (on mobile) to preview the actual URL. Legitimate UPI links will only point to domains like gpay.google.com, phonepe.com, or paytm.com.
• If in doubt, contact the supposed sender through an official channel—never via the link.

Remember: No legitimate service will ask you to pay via a link sent in a text message. Always open your UPI app directly.

6. Use UPI IDs Instead of Bank Account Details for Receiving Payments

Sharing your bank account number and IFSC code exposes you to greater risk. Fraudsters can use this information to initiate unauthorized NEFT/RTGS transfers or create fake UPI IDs in your name.

Instead, generate a unique UPI ID (e.g., yourname@upi) and share that instead. UPI IDs are anonymous, non-reversible, and tied only to your app. Even if someone obtains your UPI ID, they cannot initiate a transaction without your PIN and device authentication.

How to create a secure UPI ID:

• Choose a generic identifier (e.g., john.doe@upi) instead of your full name or phone number.
• Do not reuse the same UPI ID across multiple apps.
• Change your UPI ID periodically if you suspect exposure.

Many apps allow you to create multiple UPI IDs for different purposes (e.g., personal, business, family). Use them strategically to compartmentalize risk.

7. Regularly Review Transaction History and Reconcile Balances

Fraudsters often make small test transactions—₹10, ₹50, ₹100—to verify if a UPI ID is active before launching larger attacks. If you don’t monitor your transactions daily, these small withdrawals can go unnoticed until thousands are gone.

Establish a routine:

• Check your UPI app transaction history every evening.
• Compare it with your bank statement—discrepancies indicate possible fraud.
• Look for transactions you didn’t initiate, especially late at night or from unfamiliar merchants.
• Save screenshots of all receipts for critical payments.

Set calendar reminders to review your account once a week. If you spot anything suspicious, act immediately—don’t wait for the bank to notify you.

8. Freeze or Temporarily Disable UPI Access When Not in Use

Some UPI apps and banks offer a “Pause UPI” or “Block Payments” feature. This allows you to temporarily disable all outgoing UPI transactions while keeping your account active for incoming funds.

Use this feature when:

• You’re traveling and won’t be using digital payments.
• You suspect your phone has been compromised.
• You’re handing your phone to someone else (e.g., for repairs or to a child).

To freeze UPI:

• Open your bank’s app or UPI app.
• Go to Security > UPI Settings > Pause UPI Transactions.
• Confirm the action with your password or biometrics.
• Unpause when you need to transact again.

This simple step can prevent unauthorized payments even if your PIN is stolen.

9. Secure Your Mobile Device and Network

Your smartphone is the gateway to your UPI account. If it’s infected with malware, stolen, or connected to public Wi-Fi, your UPI security is compromised regardless of your PIN strength.

Device security checklist:

• Install updates for your OS and UPI apps immediately—they often patch security flaws.
• Use a strong screen lock: PIN, pattern, or biometric (fingerprint/face ID).
• Install a reputable mobile security app with anti-malware and phishing protection.
• Disable “Install Unknown Apps” in Settings > Security.
• Never jailbreak or root your phone—it disables critical security layers.
• Avoid public Wi-Fi for UPI transactions. Use mobile data or a trusted VPN if necessary.
• Enable “Find My Device” (Android) or “Find My iPhone” to remotely lock or wipe your phone if lost.

Also, disable Bluetooth and NFC when not in use. Some advanced fraud tools exploit these protocols to intercept data.

10. Report Suspicious Activity Immediately

Time is critical. The sooner you report a fraudulent transaction, the higher the chance of recovery. Most banks and UPI platforms have mechanisms to reverse unauthorized payments if reported within 24–48 hours.

Steps to report:

• Open your UPI app and locate the suspicious transaction.
• Tap “Report Fraud” or “Dispute Transaction.”
• Provide all details: time, amount, merchant name, screenshot.
• Simultaneously, contact your bank’s digital fraud team through their official app or website.
• File a complaint with the National Cyber Crime Reporting Portal (https://cybercrime.gov.in).

Do not delay. Even if you’re unsure whether it’s fraud, report it. False reports are rarely penalized, but delayed reports often result in permanent loss.

Best Practices to Prevent UPI Fraud

1. Educate Family Members, Especially Elderly Users

Senior citizens are among the most targeted demographics for UPI fraud due to lower digital literacy. Teach them to:

• Never share UPI PINs or OTPs.
• Recognize fake messages and calls.
• Only make payments through apps they’ve downloaded from official stores.
• Ask for help before clicking any link.

Set up shared family accounts with parental controls or transaction limits for elderly users. Enable notifications so you’re alerted to any activity.

2. Avoid Saving Payment Details in Public or Shared Devices

Never use UPI on shared computers, library terminals, or friends’ phones. Even if you log out, cached data or browser cookies can be exploited. Always use your personal device.

3. Use Virtual Cards for Online Merchants

If you frequently shop online, generate a virtual debit card through your bank’s app. These cards have limited balances and single-use capabilities. Link them to UPI for online payments instead of your primary account. If compromised, damage is contained.

4. Monitor for Fake UPI Apps

Fraudsters create fake UPI apps that look identical to Google Pay or PhonePe. They’re distributed via third-party websites, SMS links, or YouTube ads.

How to identify fake apps:

• Check the developer name—official apps are published by Google, PhonePe Pvt Ltd, Paytm Payments Bank, etc.
• Look at the number of downloads—official apps have millions.
• Read reviews—fake apps often have generic or duplicate reviews.
• Download only from Google Play Store or Apple App Store.

If you accidentally install a fake app, uninstall it immediately and change your UPI PIN.

5. Never Allow Remote Access to Your Phone

Fraudsters often pose as tech support and ask you to install remote access tools like AnyDesk, TeamViewer, or Chrome Remote Desktop. Once granted, they can control your phone, open UPI apps, and transfer funds.

Never allow remote access unless you initiated the request with a verified official entity. Even then, monitor every action.

6. Set Daily Transaction Limits

Most UPI apps allow you to set maximum daily or per-transaction limits. Reduce these to the minimum you need.

Example settings:

• Per transaction: ₹10,000
• Daily limit: ₹25,000

This prevents large-scale theft even if your credentials are compromised.

7. Keep Your Registered Mobile Number Secure

Your mobile number is the key to UPI authentication. If a fraudster performs a SIM swap, they can receive all OTPs and reset your UPI PIN.

Protect your number by:

• Enabling SIM lock with your telecom provider.
• Setting a port-out PIN or password with your carrier.
• Monitoring for unexpected SMS delays or loss of service.
• Never sharing your mobile number publicly on social media or forums.

8. Use UPI for Receiving Payments Only When Necessary

While UPI is convenient for receiving money, consider using bank transfers or cheques for large or infrequent payments. The fewer times your UPI ID is shared, the lower your exposure.

9. Avoid Public QR Code Scanning

Scanning QR codes from unknown sources (e.g., street vendors, posters, or flyers) can trigger unauthorized payments. Always verify the merchant name before confirming any transaction.

Best practice: Manually enter the UPI ID or phone number instead of scanning unless you trust the source.

10. Conduct Quarterly Security Audits

Every three months, perform a full security review:

• Review all linked bank accounts and UPI IDs.
• Check active sessions in your UPI app.
• Update passwords and PINs.
• Remove unused apps and accounts.
• Confirm your registered mobile number and email are current.

This habit transforms security from reactive to proactive.

Tools and Resources to Block UPI Fraud

Official Government and Bank Tools

The Reserve Bank of India (RBI) and Indian banks provide several tools to enhance UPI security:

• RBI’s UPI Fraud Reporting Portal – https://www.rbi.org.in – Offers guidelines and reporting mechanisms for fraud victims.
• National Cyber Crime Reporting Portal – https://cybercrime.gov.in – File formal complaints for UPI fraud and track status.
• BHIM App – Developed by NPCI, this government-backed app offers enhanced security features including no ads, no third-party integrations, and mandatory 2FA.
• Banking Security Dashboard – Most banks now offer a dashboard within their mobile apps to view all active UPI links, recent transactions, and device registrations.

Third-Party Security Apps

These apps enhance device-level protection:

• McAfee Mobile Security – Detects phishing links, malware, and fake apps.
• Norton Mobile Security – Real-time protection for UPI transactions and app permissions.
• Kaspersky Safe Money – Creates a secure environment for financial apps, isolating them from other processes.
• Google Play Protect – Built into Android devices; automatically scans apps for threats.

Browser Extensions for Desktop Users

If you manage UPI via desktop (e.g., for business accounts), use:

• Bitwarden – Secure password manager to store UPI PINs (never in plain text).
• uBlock Origin – Blocks malicious ads and phishing pop-ups.
• HTTPS Everywhere – Ensures all connections to UPI portals are encrypted.

Monitoring and Alert Services

• Google Alerts – Set alerts for your name + “UPI” or “payment scam” to detect if your identity is being misused.
• Credit Monitor Apps – Apps like CIBIL or BankBazaar can notify you of new financial accounts opened in your name.
• Transaction Watchers – Services like Truecaller or Paytm’s own fraud detector flag suspicious payment requests.

Free Educational Resources

• NPCI’s UPI Safety Campaign – https://www.npci.org.in – Videos and infographics on UPI security.
• RBI’s Consumer Awareness Portal – https://www.rbi.org.in/Scripts/ConsumerAwareness.aspx
• Cyber Swachhta Kendra – Government initiative offering malware removal tools and security tips.

Real Examples of UPI Fraud and How They Were Prevented

Case Study 1: The Fake Delivery Scam

A 68-year-old woman in Pune received an SMS claiming her Amazon package was stuck and required a ₹799 payment to release it. The link redirected her to a fake UPI interface that mimicked Google Pay. She entered her PIN and lost ₹7,900 across three transactions.

How it was resolved: She noticed the transaction alerts on her phone and immediately called her bank. The bank froze her account, reversed the transactions, and blocked the fraudulent UPI ID. She later learned the scam originated from a spoofed SMS gateway used by a cybercrime ring.

Lesson: Transaction alerts saved her money. Had she not enabled them, she might have discovered the fraud days later.

Case Study 2: The Remote Access Scam

A small business owner in Bengaluru received a call from someone claiming to be from “Paytm Support.” The caller asked him to install TeamViewer to “fix a UPI error.” Once granted access, the fraudster transferred ₹1.2 lakh to multiple accounts.

How it was resolved: The business owner noticed unusual activity on his phone screen and disconnected the remote session. He immediately changed his UPI PIN and reported the incident. The bank traced the funds to a money mule account and recovered ₹85,000.

Lesson: Never grant remote access. Always verify the caller’s identity using official contact details from the app or website.

Case Study 3: The QR Code Trap

A student in Delhi scanned a QR code posted outside a café offering a “free coffee” in exchange for a ₹10 payment. The code was linked to a fraudulent UPI ID. The student unknowingly paid ₹10,000 to a criminal network.

How it was resolved: The student’s father, who had attended a UPI security workshop, noticed the transaction and reported it. The bank used the merchant’s IP address to trace the fraud to a network of fake QR codes distributed across 12 cities.

Lesson: Always verify the recipient name before confirming a QR-based payment. Never scan codes from untrusted sources.

Case Study 4: The SIM Swap Attack

A freelancer in Hyderabad had his mobile number ported to a new SIM without his knowledge. The fraudster used the OTP to reset his UPI PIN and drained ₹3.5 lakh from his account.

How it was resolved: He noticed his phone had no network and immediately visited his telecom provider. He had previously set a port-out PIN, which blocked the unauthorized transfer. The bank froze the account and reversed the transactions after investigation.

Lesson: Always enable a port-out PIN with your telecom provider. It’s a simple step that can prevent total financial loss.

FAQs: Common Questions About Blocking UPI Fraud

Can UPI transactions be reversed after they are completed?

UPI transactions are designed to be instant and irreversible. However, if a transaction is unauthorized, banks can initiate a chargeback if reported within 48 hours. The success rate depends on how quickly you act and whether the funds are still in the recipient’s account.

Is it safe to use UPI on public Wi-Fi?

No. Public Wi-Fi networks are often unsecured and can be monitored by hackers. Always use mobile data or a trusted, encrypted VPN if you must transact on public networks.

What should I do if I accidentally share my UPI PIN?

Immediately change your UPI PIN through your bank’s app or internet banking. Then, freeze your UPI access for 24 hours. Monitor your account for suspicious activity and report any unauthorized transactions.

Can fraudsters steal money using only my UPI ID?

No. A UPI ID alone cannot be used to withdraw money. Fraudsters need your UPI PIN and access to your device to complete a transaction. However, sharing your UPI ID increases your exposure to phishing and fake payment requests.

How do I know if my UPI app has been hacked?

Signs include: unfamiliar transactions, apps you didn’t install, sudden loss of notifications, or being logged out unexpectedly. If any of these occur, change your PIN, uninstall suspicious apps, and contact your bank.

Are UPI apps more secure than net banking?

Both are secure when used correctly. UPI apps offer convenience and biometric authentication, while net banking often has more robust audit trails. The key is not the platform—it’s your behavior. Poor security habits make any system vulnerable.

Can I block a specific UPI ID from sending me payment requests?

Yes. Most UPI apps allow you to block specific UPI IDs. Go to Settings > Blocked Addresses and add the ID. You’ll no longer receive requests from that address.

What happens if I lose my phone?

Immediately use “Find My Device” to lock or erase your phone. Then, contact your bank to freeze all UPI transactions linked to your number. Change your UPI PIN once you get a new device.

Is it safe to use UPI for business payments?

Yes, if you follow best practices: use a separate business UPI ID, enable transaction limits, monitor daily, and avoid sharing your UPI ID publicly. Consider using UPI for collections and bank transfers for large payments.

How often should I update my UPI app?

Always install updates as soon as they’re available. Updates often include critical security patches. Do not delay—many frauds exploit known vulnerabilities in outdated versions.

Conclusion: Stay Vigilant, Stay Secure

UPI fraud is not a matter of if—it’s a matter of when. But with the right knowledge, tools, and habits, you can drastically reduce your risk and protect your hard-earned money. This guide has provided you with actionable, step-by-step strategies—from enabling 2FA to recognizing fake links, from freezing UPI access to conducting quarterly audits.

The most powerful weapon against fraud is awareness. Fraudsters rely on haste, distraction, and ignorance. By slowing down, verifying every request, and securing your devices, you remove their advantage.

Remember: No legitimate entity will ever ask for your UPI PIN. No official app will send you payment links via SMS. If something feels off, trust your instincts. Pause. Verify. Report.

Protecting your digital finances isn’t a one-time task—it’s an ongoing commitment. Implement these practices today, review them monthly, and share them with your family. Together, we can build a safer digital payment ecosystem—one transaction at a time.