New 'Jumped Deposit Scam' targeting UPI users: Key insights and safety tips to protect your money

Cybercriminals are exploiting UPI users with the ‘Jumped Deposit Scam,’ tricking them into authorising fraudulent transactions. Here’s how it works and ways to stay safe.

A new scam targeting UPI users, called the ‘Jumped Deposit Scam,’ is causing widespread concern. (Pexels)

Cybercriminals have introduced a new scam targeting UPI users, referred to as the ‘Jumped Deposit Scam,' where unsuspecting victims are tricked into losing money. Reports have been flooding in from across the country as more people become aware of this growing threat. However, The National Payments Corporation of India (NPCI) has responded to concerns raised by several media reports of a new form of fraud, dubbed the 'Jumped Deposit' scam. 

Jumped Deposit Scam : No Need to Panic

The National Payments Corporation of India (NPCI) addressed technical misconceptions surrounding the scam. NPCI clarified that simply opening a UPI or bank app does not approve a transaction. A user must actively navigate to a payment request and click the 'pay' option to authorise any payment. Without this action, a transaction will not proceed. NPCI emphasised that UPI is a secure, device-based system. Only the registered user can initiate a transaction, ensuring no external party can directly withdraw funds.

Additionally, NPCI clarified that inputting a PIN for balance inquiries does not authorise transactions or withdrawals, as these are treated as separate actions. The UPI system continues to follow stringent safety protocols and regulatory measures, supporting the adoption of digital payments.

Earlier today, following numerous complaints reported on the National Cyber Crime Reporting Portal, the Tamil Nadu Police issued a public warning. They advised UPI users to exercise caution regarding unexpected deposits from unknown sources. However, experts maintain that the UPI system has robust safeguards in place to prevent unauthorised transactions.

Additionally, NPCI clarified that inputting a PIN for balance inquiries does not authorize transactions or withdrawals, as these are treated as separate actions. The UPI system continues to follow stringent safety protocols and regulatory measures, supporting the adoption of digital payments.

How to Protect Yourself

To avoid falling victim to the scam, follow these two steps:

1. Delay Checking Your Balance: Wait for 15-30 minutes before reviewing your account after receiving a credit notification. This delay helps any fraudulent withdrawal requests to expire.
2. Enter an Incorrect PIN: If immediate action is needed, intentionally entering an incorrect PIN will block any pending transactions.

What to Do if You're Targeted

If you receive an unexpected deposit, inform your bank and report the incident to your nearest cybercrime police station or the National Cyber Crime Reporting Portal at www.cybercrime.gov.in. Quick reporting increases the chances of recovering stolen funds and prevents further exploitation.