NPCI clarifies misconceptions about Jumped Deposit scam, no fraud reported

In light of recent media reports about a purported new online fraud called the ‘Jumped Deposit’ Scam, the National Payments Corporation of India (NPCI) has stepped forward to clarify inaccuracies and technical discrepancies in these descriptions to allay fear and confusion among users about the safety and reliability of the Unified Payments Interface (UPI) platform.

“We would like to clarify that no instances of fraud, as described in the articles on ‘Jumped Deposit’ Scam, have been observed on the UPI platform,” said NPCI in a statement.

Transactions require user authorisation:Simply opening a UPI or bank application does not result in an automatic transaction. Users must actively navigate to the payment request and explicitly click on the ‘pay’ option. This step requires entering a UPI PIN, without which no transaction can proceed.

Secure user-controlled transactions: UPI operates as a device-based payment system, where the payment account is securely linked to the user’s registered mobile number and their specific mobile device. This ensures that only the user can initiate transactions or withdrawals. No external party can directly request or withdraw funds from the user’s account without user action.

Separate authorisation for transactions:Even for balance inquiries, entering the UPI PIN is mandatory. This action does not authorise any withdrawals or payment requests, as such actions are treated as distinct transactions requiring explicit user approval.

The NPCI emphasised that UPI transactions are backed by robust safety protocols and stringent regulatory measures. Designed with real-time capabilities and interoperability, UPI has not only simplified digital payments, but also significantly boosted their adoption across India.

NPCI reassured users of UPI’s built-in security features, which ensure the platform’s reliability and safety. Users are encouraged to continue using UPI with confidence, as its advanced safeguards make it a secure choice for digital transactions.

How to remain protected?

Avoid interacting with unknown contacts:Do not respond to calls or messages from unfamiliar numbers asking for personal information. Your bank will never request sensitive details over the phone or via text.

Know the money receiving process: Receiving money does not require entering a PIN. Fraudsters may misuse the ‘request money’ feature, so never share your PIN in such situations.

Exercise caution with payment requests:If you receive a payment request from an unfamiliar account, reject it. Clicking ‘Pay’ could transfer money to a fraudster instead of receiving it.

Download apps only from trusted sources:Install UPI apps only from reputable platforms like the Google Play Store or Apple App Store. Stay away from counterfeit apps that imitate legitimate banking apps.

Create strong and secure UPI PINs: Set a complex UPI PIN and change it frequently. Never share your PIN with anyone, no matter the circumstance.

What is Jumped Deposit Scam

In this scam, fraudsters deposit a small sum of money into the victim’s bank account through UPI. Once the victim notices the deposit, the fraudster reaches out with a request for a larger sum, often accompanied by a fabricated story.

Curious about the unexpected deposit, the victim checks their banking app and enters their UPI PIN to verify the balance. The fraudster then sends a fraudulent payment request. When the victim authorises the payment by entering the PIN, the fraudster steals the difference between the small deposit and the larger amount asked for.