Digital payment methods have become ubiquitous post the Covid-19 pandemic, rendering traditional cash-carrying habits nearly obsolete. For individuals accustomed to the convenience of online transactions through UPI, QR codes, phone numbers, or online banking, a word of caution is essential – the prevalence of online payment fraud has risen in tandem with the surge in digital transactions. India, like other regions globally, is grappling with the increasing occurrence of online scams and frauds, orchestrated by cybercriminals. These illicit activities aim to deceive individuals, leading them to divulge personal information, money, or unauthorized access to their devices. In the face of falling victim to such scams, here are some strategies to reclaim lost funds.
UPI Fraud
Unified Payments Interface (UPI) has revolutionized digital payments in India, allowing seamless money transfers through smartphones directly to bank accounts. While UPI transactions are generally secure, occasional errors in the digital gateway can expose individuals to UPI fraud. In accordance with Reserve Bank of India (RBI) guidelines, individuals falling victim to UPI fraud should initiate the reporting process with the respective payment service provider, such as GPay, PhonePe, or Paytm. These providers have dedicated mechanisms to assist and support customers, allowing users to flag unauthorized transactions and request refunds. If the UPI service provider’s support is insufficient, users have the option to file a complaint on the NPCI portal (npci.org.in) or with the payment service provider (PSP) bank, followed by the bank where the end-user maintains their account.
Moreover, if the matter persists without resolution for the subsequent 30 days, individuals have the option to escalate the complaint to the Banking Ombudsman and/or the Ombudsman for Digital Complaints. Following RBI guidelines, the end-user can formally submit a complaint to the Ombudsman by crafting a written complaint on plain paper and dispatching it to the relevant office through post, fax, or hand delivery. Ombudsman officials, appointed by the RBI for digital transactions, hold the responsibility of addressing and resolving customer complaints.
Banking Frauds
Individuals with malicious intent are exploiting our financial data and personal details to unlawfully extract money from unsuspecting individuals’ accounts. Cybercriminals pilfer vital information like passwords and personal data to siphon funds from innocent individuals’ bank accounts using OTP fraud.
In these fraudulent schemes and online banking scams, hackers construct replica websites that mimic authenticity. However, following banking regulations, victims of such frauds can seek a complete reimbursement for unauthorized transactions.
The essential step is to promptly report the inadvertent and unauthorized transaction to your bank, as many banking partners have insured their customers against financial fraud.
Subsequently, the bank will furnish an update to the insurance company regarding the fraud to curtail the customer’s liability. Following this, the victim of the fraud (in this case, you) will receive compensation from the bank within 10 working days.
It’s crucial for users to take note that reporting such transactions to the bank must occur within three days, failing which they may incur a loss of up to Rs 25,000.
Moreover, users should report the fraud to the local police station and contact the National Cyber Crime Reporting portal (Helpline Number – 1930) or file a complaint online through cybercrime.gov.in to formally register any complaints related to cyber fraud.
Lottery Fraud
Have you recently received an unexpected SMS or email notifying you of winning a lottery, even though you have no recollection of participating? Exercise caution when confronted with messages or emails claiming substantial lottery or sweepstakes winnings, especially if they require an upfront payment or personal information to claim the prize—it’s likely a scam.
In the age of advancing scam tactics, fraudsters are adept at extracting personal and critical information online, potentially leading to the depletion of your bank account without your immediate realization.
If you find yourself entangled in such a lottery scam, don’t panic. You can take steps to recover your money through a straightforward process. Begin by contacting your bank’s customer care service to report the incident and request a refund. Subsequently, file a detailed complaint at the nearest Police Station, providing a comprehensive account of the incident, supported by documents such as bank statements and copies of the SMS, email, or courier received, along with your identity details. Additionally, register a complaint on http://www.cybercrime.gov.in, furnishing information about the fraud and submitting the requisite documents.
Conclusion
As digital transactions become an integral part of daily life, the risk of falling victim to online payment frauds is on the rise. Whether it’s UPI fraud, banking scams, or lottery fraud, individuals must stay vigilant and take swift action if they find themselves entangled in such schemes. Promptly reporting incidents to the respective authorities, such as payment service providers, banks, and law enforcement, is crucial. While recovery processes are in place, awareness, caution, and timely response remain the key components in safeguarding oneself against financial losses due to online fraud. Embracing digital advancements requires an equal commitment to understanding and mitigating the risks associated with the evolving landscape of online transactions.
