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Fake UPI App Fraud: Scam Merchants with Fake UPI App, Know Correct Ways to Avoid

Samira Vishwas | August 17, 2026 6:24 PM CST

In today’s era of Digital India, UPI (Unified Payment Interface) has made financial transactions very easy and fast. From vegetable lorries to big malls, people everywhere prefer to pay through UPI from smartphones instead of cash. But, along with this convenience, the dangers of cybercrime are also increasing rapidly. Nowadays there is a new and very clever trend in the market – Fraud through ‘Fake UPI Payment App’.

How does this fake app work?

The crooks are now so vicious that they can blackmail you right in front of your eyes. These fake apps designed to cheat look exactly like genuine Google Pay, PhonePe or Paytm. When a crook buys goods from your store, he scans your QR code. Then, after entering the amount in this fake app, it shows you a screen with a green ‘Payment Successful’ message and animation similar to the genuine payment. Not only this, a sound notification is also heard from these apps that the payment has been made. Seeing this in the customer’s phone, the shopkeeper thinks that the money has been received, but in fact not a single rupee is deposited in the bank account.

Who becomes the victim?

Links to these types of fake apps are mainly shared on Telegram and other unknown platforms. Cybercriminals especially target petty shopkeepers, vegetable vendors, petrol pump attendants and labourers. Because merchants in crowded places cannot take the time to open their bank app every time to check the balance and rely only on the voice of the sound box or the customer’s screen.

Effective ways to avoid these scams:

Do it yourself: Don’t just consider the customer’s phone screen or the sound coming from it as final proof. Always check balance history of your own UPI app or SMS from bank after making payment.

Security of PIN: Always remember that UPI PIN is only used to send money, never need to enter PIN to receive money.

Use only official apps: Always download UPI apps from official platforms like Google Play Store or Apple App Store. Don’t install apps from unknown links for the lure of more cashback.

Avoid Public Wi-Fi: Avoid online financial transactions using free Wi-Fi in public places like railway stations or cafes.

What to do in case of fraud?

If you find any disturbance in your bank account transactions or fall victim to any such cyber fraud, call the cyber helpline number 1930 immediately without any panic. Apart from this, you can also register your complaint online by going to the official portal of the Government of India, cybercrime.gov.in.

UPI is a very secure and convenient mode of payment, it just requires some awareness and caution. A little vigilance can save you from major financial losses.