Scams have increased by many folds in our country, and scamsters are devising new, innovative techniques to fool people. With the wave of digitalization in India, we have become more prone to these frauds. Through digital channels, these criminals are able to get into our lives, steal our data. It also happens because we are ignorant when it comes to giving permissions to different platforms.
They are devising innovative and more devious ways to dupe people —sending fake job offers to our personal email IDs, using WhatsApp to demand immediate payment of utility bills, placing false advertisements on Meta, and requesting payments through Paytm or PhonePe.
The rise of digital payment platforms and e-commerce also opened the floodgates for cybercriminals to exploit technology in order to cheat people.
Let us inform you about a few scams that are new to the market.
The UPI Refund Scam
The Unified Payments Interface (UPI) has become a part of our daily lives in the last few years. From paying at local grocery stores to recharging phones to also booking flight tickets, we use UPI almost everything. Consequently, scamsters have started adopting new methods to trick people using UPI apps.
UPI scam is where fraudsters call and inform you that you have a refund due. To gain your trust, they often use official jargon.They could impersonate officials of banks, the Income Tax Department, or popular e-commerce websites such as Amazon or Flipkart. They will share a link with you through a message and insist you register through it to claim your refund.
The registration process might need you to enter your bank account details or UPI ID and PIN. They will pressure you to fill it up immediately so that the money can be instantly deposited into your account. But as soon as you do that, money will actually be taken out of your bank.
The moment somebody contacts you with such an offer, check whether you are actually eligible for a refund or not. If yes, is it coming through a verified way? Banks or other officials will never ask you for such sensitive details, says Shilpi Mishra, president of Process, Controls, Risk Containment, and Functional Training at Kotak Mahindra Bank Ltd.
“Do not click on links received from unknown sources or sender IDs,” she says.
To further safeguard yourself, always contact the organization directly through official customer care channels. Avoid rushing into decisions, no matter how urgent the fraudster tries to make the situation appear.
OTP Fraud: A Timeless Trick
In this type of fraud, you usually get a fake message from non-banking financial companies (NBFCs) offering a loan or credit enhancement. The message will ask you to share your financial details and one-time password (OTP) or PIN details that you will receive on your registered mobile number.
The moment you share the OTP, fraudsters will use it to conduct unauthorized transactions from your bank accounts. Within a minute, you will see chunks of money being debited from your account.
The alarming rise in OTP fraud cases indicates that scammers have refined their techniques. They use emotionally manipulative tactics, including fear of missing out (FOMO) on a lucrative offer or the threat of financial penalties.
Vaibhav Todankar, CEO-Retail Business, In-Solutions Global, advises, “If an offer sounds too good to be true, it probably is. Be cautious of proposals that guarantee high returns with little or no risk.” Mishra emphasizes that you should never scan a QR code or enter a PIN or OTP to receive money through UPI. To be extra careful, check SMS and emails regularly to ensure that no OTP has been generated without your knowledge.
In case you suspect any unauthorized activity, contact your bank immediately and freeze your account to prevent further losses.
Fake Delivery Scams
E-commerce platforms such as Flipkart, Amazon, and Myntra use OTP-based delivery processes to ensure the goods you have ordered reach your hands safely. Fraudsters have started adopting this method to steal money from bank accounts.
Scamsters target people who frequently shop online. They come to your doorstep disguised as delivery partners of e-commerce websites or the postal department and ask for money for a pay-on-delivery package. If you agree, they will send a link to your phone to generate an OTP for delivery. Clicking on the link allows fraudsters to access your phone and personal details, including bank account information.
If you refuse to pay, they might still send a link to initiate the cancellation, claiming you need to confirm the action via OTP. Once you share the OTP, the scammers gain unauthorized access to your financial details.
To protect yourself, always verify the source of delivery. Check the e-commerce platform’s app for any order updates and verify the delivery agent’s identity through official communication. If it is a pay-on-delivery package, open the parcel and inspect its contents before making any payment.
Sachin Yadav, Partner-Financial Advisory, Deloitte India, advises, “Do not respond or open unsolicited emails or SMS. Stay alert and scrutinize every transaction closely.”
Electricity Bill Scams
Many users receive messages on WhatsApp or SMS claiming their electricity connection will be disconnected unless they immediately call a specific number.
The message typically reads:
“Dear Customer, Your Electricity power will be disconnected tonight at 8:30 pm from the electricity office because your previous month’s bill was not updated. Please immediately contact our electricity office at 82xxxx1159. Thank you.”
Such messages create panic and prompt victims to act without verifying the claim. However, legitimate electricity boards send official communication via verified numbers or channels.
To identify fake messages, Shilpi Mishra suggests watching out for spelling errors and unusual sender IDs. Scammers often create a sense of urgency to push victims into making hasty decisions. Always confirm your payment status through the official Electricity Board website or app.
Juice Jacking
Another alarming method of scamming people is juice jacking, where fraudsters use public charging ports to steal data from phones. Malicious hardware or software is installed into charging stations to hack phones and steal sensitive information such as bank details.
To safeguard your data, avoid using public charging ports. Get yourself a powebank or carry your charger. If you must use a public charging station, consider a USB data blocker to prevent unauthorized access.
Stock Market Scams
The stock market scams are probably the oldest type of scam. False schemes guaranting high returns lure investors into traps. Social media platforms often display ads claiming to double your money in a short period of time.
These scams frequently involve fake trading advisors offering paid webinars or exclusive trading tips. To protect yourself, always verify the credentials and do a background check. Such advisors can simply do this by checking their social media handles or even LinkedIn. Under no circumstance should you share your information. Regularly update your account security settings by changing your passwords and enabling two-factor authentication to add an extra layer of protection.
Digital Arrests
In a disturbing new trend, fraudsters impersonate law enforcement officers or government agencies such as the CBI, ED, or NCB to intimidate victims. Victims are informed they are under investigation for serious crimes like money laundering or human trafficking. The fraudsters use terms like digital arrest to create fear and urgency. They have advanced their technologies to a point where they use auto-generated voice systems, which makes people believe them further.
They might show you an arrest warrant or fake legal documents such as – a court order, and then out of fear you would trust them and do as per they say. A lot of people have been fooled like this and what is even worse is that out of shame these victims could not even report the crime or inform any relatives or friends. In some cases they even ask you to be under surveillance by keeping your camera on as they watch you. This also allows them to keep a hold of your every move.
Recently the case of Dr Ruchika Tandon, Associate Professor, SGPIMS has come to light. The call was from a person fraudulently passing himself off as a TRAI official who said 22 complaints had been made against her mobile SIM. Prying on Tandon’s fear and panic, they “arrested” her for money laundering and human trafficking and then ended up extorting Rs 2.81 Crore.
Another victim of the Digital Arrest fraud is an 82-year-old corporate leader, who has been fooled into giving up Rs 7 Crore. Here they had designed a fake virtual courtroom, where they showed the victim fake documents from a fake investigation.
While digital arrests do not exist legally, the emotional impact of such calls can cause victims to comply with demands for money or sensitive information. Fraudsters often go to great lengths, setting up fake police stations and using forged documents to make their claims credible.
The Ministry of Home Affairs (MHA) revealed that almost 92,334 instances of digital arrest fraud have been reported alone in 2024, resulting in a staggering loss of Rs 2,140 Crore.
These Digital Scams have grown so rapidly that the Prime Minister, Narendra Modi had to address this issue in his “Mann Ki Baat” broadcast, urging citizens to “stop, think, and take action.” He emphasized that no investigative agency would contact individuals through phone or video calls for such investigations.
The Big Question Is – Why Do People Fall For Such Schemes?
Seems like Indians do not want to learn from their mistakes; sometimes, we even refuse to acknowledge that we made one. This is exactly why we keep putting our feet in such traps. Another important reason is that – we have so much social stigma attached to these things that when we are suffering, instead of reaching out for help, we feel shame, which then does not allow us to inform others of our mistakes. Which again does not allow the opportunity for others to learn from our mistakes.
It is high time, we change our attitude towards things and attaching shame to things like this is only doing more harm than benefit. It is time for us to check ourselves!
Is The Police To Be Blamed For This?
Indian Police have a somewhat distorted image in the eyes of the citizens of the country. People who fall for such scams and frauds are mostly hesitant to report the matter to the Police because of the image that the Police has made for themself. People are of the opinion that asking the Police for help implies that they will first have to pay some sort of bribe and then the Police will start its job.
Another thing is that people are often scared to approach the Police, considering they have a harsh image of themselves in the eyes of the people, which is also why a lot of victims of the digital arrest fraud, fell into the trap in the first place.
Our Next Question Is To The Government – Keeping in mind that a lot of times, these criminals already have a lot of sensitive information about their victims, is it possible for them to have this data without the cooperation of the government departments ?
We constantly hear of different data breach stories. How is it possible that the 3rd largest economy of the world cannot even manage to keep the data of its people secure?
How to Protect Yourself ?
Stay Informed – Knowledge is your first line of defense. Regularly update yourself on emerging scam trends. Read the terms and conditions before signing up for different apps and websites, instead of just blindly tapping “allow”.
Verify Sources – Always verify the identity of the person or organization contacting you. Use official channels to confirm their authenticity. For example, if a delivery agent contacts you about a parcel, first check your order history in the e-commerce platform’s app.
Do Not Share Sensitive Information – Avoid sharing bank account details, UPI PINs, or OTPs with anyone, even if they claim to be officials.
Use Secure Channels – When making online payments, ensure you are on a secure and verified website or app. Like absolutely avoid using public Wi-Fi networks for any transactions. Use a VPN if necessary.
Be Cautious Of Links And Attachments – Often fraudsters send malicious links or attachments through emails, sms, or social media messages. Try to avoid opening any such link or attachment. Sometimes, these links can also install viruses in your devices, to prevent this from happening, always have an antivirus installed.
Secure Your Devices – Our mobiles and PCs are gateways to sensitive information, thus ensure they are well-protected, with passwords. Use multi-factor authentication for all payments, applications and accounts.
Act Quickly – If you suspect fraud, report the incident immediately to your bank and the cybercrime cell.
Staying alert and aware can protect us from falling for these scams. Remember, if an offer sounds too good to be true, it probably is. Trust your instincts and prioritize safety over convenience.
