Is 'Jumped Deposit' scam targeting UPI users? NPCI clarifies
What's the story
The National Payments Corporation of India (NCPI) has issued a statement dismissing recent media reports about a possible "Jumped Deposit" scam targeting Unified Payments Interface (UPI) users.
The organization said that no such fraudulent incidents have been detected on the UPI platform.
This clarification comes after claims that scammers were depositing small amounts into users' accounts and tricking them into approving larger payment requests.
Misinformation corrected
Inaccuracies in scam reports addressed
The NPCI flagged some inaccuracies and technical discrepancies in the media reports on the alleged "Jumped Deposit" scam.
The organization noted that these errors have led to unnecessary panic and confusion among UPI users.
It further clarified that no instances of fraud, as described in these articles, have been observed on the UPI platform.
Security assurance
NPCI emphasizes UPI's secure transaction process
Reassuring users about the security of the UPI platform, NPCI described it as a device-based payment system that securely links a user's account to their registered mobile number and device.
The organization clarified that just opening a UPI or bank app doesn't automatically approve a transaction.
Users have to explicitly authorize any payment request by entering their UPI PIN, without which no transaction can be processed.
Transaction control
User control over transactions and withdrawals
The NPCI stressed that no third party can directly ask for or withdraw money from a user's account.
The body said, "Only the user can initiate transactions or withdrawals, ensuring that others cannot access their funds."
This was said in response to concerns raised by experts that scammers can take advantage of the user's trust and their limited knowledge of UPI processes.
PIN clarification
NPCI clarifies role of UPI PIN in transactions
The NPCI also clarified the role of UPI PIN in transactions, saying that entering the PIN is mandatory even for balance inquiry transactions.
It doesn't automatically authorize any withdrawal or payment requests, which are considered separate transactions.
"Inputting the PIN is required even for balance enquiry transactions, and it does not automatically authorise any withdrawal or payment requests which is treated as a separate transaction," NPCI said.