Legal Actions Against Fake Upi Payment Fraudsters: What Victims Can Do

By Author: Akhil Sharma
Total Articles: 8
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The growth of Unified Payments Interface (UPI) transactions has made electronic payments effortless and effective. But with ease comes the possibility of fraud. One of the most frequent frauds of the moment is fraudulent UPI transactions, and fraudsters employ manipulated screenshots, fake applications, and unauthorized transactions in order to trick people and businesses.
If you've become a victim of an untrue UPI scam, what legal actions are you able to take? How can you track down and retrieve your stolen cash? In this blog, we'll explore legal options, the preventive actions, and the most important actions to follow if you are a victim of fraudulent UPI payments.

Understanding Fake UPI Payment Fraud

A fake UPI fraud happens in the event that a fraudster manipulates an account so that it appears that they've actually paid even though no actual money has been transferred. It can be done by:

Screenshots of fake payments: The fraudsters modify an authentic UPI receipt to reveal an untrue payment.

Fake UPI applications: Some ...
... applications mimic authentic payment applications, but they don't make actual transactions.

Reversal fraud: The fraudster transfers funds and asks for a refund but then later cancels the transaction in question.

QR code fraud: Scammers send out fraudulent QR codes that cause unintentional deductions of your funds.

If you've been tricked into a scam, taking immediate legal action is essential.

Legal Steps Victims Can Take Against Fake UPI Payment Fraud

1. Report the Fraud to Your Bank and UPI App Provider

First, you must immediately report the fraud to your banking institution or your payment service company (PhonePe, Google Pay, Paytm, etc.). Here's how:

Contact the bank's customer support or stop by the closest branch to report transactions that are not authorized.
Make use of your dispute resolution process that is provided through the UPI application. A majority of UPI apps come with a 'Report Fraud" or "Help" section.
Give information about the transaction and fraudulent payment proofs (screenshots or messages) as well as other pertinent details.
The Reserve Bank of India (RBI) has mandated banks to investigate fraudulent complaints in 30 days to ensure those affected are helped promptly.

2. File a Complaint on the National Cyber Crime Portal

If the bank fails to address your problem or your fraud is based on a criminal attack such as identity theft or hacking, make an online complaint with the National Cyber Crime Reporting Portal: www.cybercrime.gov.in

Methods for reporting cybercrime:

Go to the portal, and then select "Report Financial Fraud.".
Input details such as the transaction ID as well as the mobile phone number and fraud description.
Attach the supporting documents (screenshots and fake receipts of payments or chat logs, etc.).
Send the complaint and write the identification number of the complaint to track the complaint.
Alternately, the victims may contact the Cybercrime Helpline at 1930 to make a report of UPI fraud in real-time.

3. File an FIR at the Nearest Police Station

If you've incurred losses of a large sum of cash, file a First Information Report (FIR) in your police station. Here's how:
Check in at the police station and report any fraud in accordance with the Indian Penal Code (IPC) as well as the Information Technology (IT) Act.

The sections that apply in the IPC:
Section 419: Punishment for impersonation fraud
Section420: Dishonesty and cheating getting property delivered

The sections that apply under the IT Act:
Section 66D: Penalties for fraud by impersonation by using computers resources
Section 43: Penalties for non-authorized access or harm to equipment
The police will conduct an investigation into the incident, monitor the digital footprint of the fraudster, and take any necessary actions.

4. Escalate the Matter to RBI Ombudsman

If your bank is unable to take action or solve your problem effectively, you are able to raise the issue with the Banking Ombudsman at the Reserve Bank of India (RBI):https://cms.rbi.org.in/

The steps for submitting a formal complaint:-
Go to the RBI Complaint Management System (CMS) portal.
Choose "Lodge a Complaint" and then provide the details of the scam.
Include relevant documents (screenshots and police complaints bank response).
Send the complaint in writing and follow it with your complaint reference numbers.
The Ombudsman makes sure banks follow fair and ethical practices and aids victims to receive the compensation they deserve in cases that are eligible.

5. Take Legal Action Through Consumer Court

If you're the proprietor of a business or someone who suffered financial loss because of a fraudulent UPI payment or a fraudulent UPI transaction, you may file an action with the Consumer Court in order to receive an amount of financial compensation.

Make a complaint to the District Consumer Disputes Redressal Commission (DCDRC) if your loss is less than Rs 1 million.
If the perpetrator is a company or service provider, you are entitled to damages to compensate for emotional and financial distress.
Find a cybercriminal attorney for proper legal process.

How to Protect Yourself from Fake UPI Payment Fraud?

To avoid falling prey to these scams and future scams, you must be sure to follow these important steps:

Make sure you verify payments via the UPI application or your bank statements, not screen shots.
Be wary of QR codes or requests for payment from unknown sources. Make sure you enable (2FA) when you make transactions that are high in value.
Do not download UPI applications from non-official sources. Instead, stick to the Google Play Store or Apple App Store. Keep up-to-date with the latest alerts about fraud released by the RBI as well as cybercrime regulators.

Conclusion

Fake UPI payments are an increasing concern; however, those affected aren't in need of help. Reporting immediately, taking the legal process, and raising awareness could help to recover money as well as stop further frauds. If you've been victimized by fraudulent UPI fraud, act fast—report it to your bank, cybercriminal officials, as well as police.
If we are vigilant and employ the most secure payment options, we can fight against fraudsters and make sure that UPI transactions are secure for everyone.

I'm Akhil Sharma, a dedicated digital marketer at Surepass Technologies Pvt. Ltd., A leading company that provides verification solutions such as background verification. With a passion for leveraging technology to streamline processes and enhance security, I specialize in crafting innovative digital marketing strategies tailored to meet the dynamic needs of clients.