Fraud Alert! Fake UPI apps reportedly causing big losses for small traders, street vendors, wage workers; here is what you can do

A host of fake UPI apps—mimicking the look and feel of popular, legitimate apps like GPay, PhonePe, and Paytm—are reportedly circulating on app stores. Fraudsters are targeting small traders, including shopkeepers, street vendors, and, in some cases, even daily wage workers who do not use sound boxes. In the context of the country’s homegrown UPI payment system, a sound box is a device—typically a small, portable gadget—used by merchants to facilitate and confirm digital payments, promoting ease of use for both the sender and the receiver of money.

Imitating the look and feel of legitimate apps, these fake applications are reportedly used by fraudsters to send false notifications of successful transactions, deceiving recipients and causing them to lose the money owed.

How do they work?

Fraudsters reportedly use the fake app to scan QR codes and display fraudulent screenshots that appear to confirm payment. If the recipient uses a sound box, the fake apps also trigger counterfeit payment alerts (by sound). This way, the rightful receiver gets the impression that the payment is made. 
Links to download counterfeit apps are being found reportedly on platforms like Telegram for as little as Rs 100 and, in some cases, are also available on the Play Store. This is creating a significant problem for small businessmen who rely heavily on UPI payments for their daily transactions, as they often struggle to track each transaction effectively.

It is essential for business owners and individuals to exercise caution while making UPI payments. 
They should regularly verify their UPI account balances directly in the app rather than solely relying on screenshots and notifications received by customers.

It's crucial for everyone to stay vigilant to avoid falling victim to this new type of fraud.