NPCI Dismisses Reports of ‘Jumped Deposit’ Scam, Ensures UPI Payment Security
The National Payments Corporation of India (NPCI) has dismissed recent media claims about a so-called “Jumped Deposit” scam, stating that no such fraudulent activities exist on the Unified Payments Interface (UPI) platform. The clarification was issued to dispel growing concerns among users about the security of the digital payment system.
NPCI, in turn, pointed out several inaccuracies and technical discrepancies with the media description of the scam, arguing that such reports are causing unwarranted panic and confusion. It reaffirmed that there have been no fraudulent transactions based on the detailed reports in circulation.
It is reported that according to earlier reports, the fraudsters used psychological manipulation on the users after they deposited small amounts in their accounts to make the larger payment requests valid. However, NPCI mentioned that such a scenario does not depict the actual functionality of the platform.
UPI Inbuilt Security Measures
The company clarified that UPI is a very secure, device-based payment system which connects a user’s bank account with their registered mobile number and device. Every transaction on the platform is approved explicitly by the user.
It was clarified that simply by accessing a UPI or banking application, unauthorized transactions are not allowed. Each payment request has to be explicitly approved by the user; the user must input his/her unique UPI PIN for authorization, and there is a multi-step process wherein no transaction can proceed without the direct consent of the user.
Moreover, NPCI assured users that external parties cannot independently request or withdraw funds from a user’s account. The system is designed to allow only the account holder to initiate transactions or withdrawals, maintaining a robust layer of security.
Expert Insights on Scam Misconceptions
The scam was attributed to fraudsters taking advantage of users’ reliance and their poor familiarity with UPI procedures. According to experts, several users feel that entering the UPI PIN reveals their balance since they do not realize the fact that it allows a transaction. NPCI said that the PIN was indeed needed for balance checks but no withdrawals or payment requests were permitted by the PIN. They are considered different transactions.
Some similar instances from Tamil Nadu Police earlier include unrelated phishing scams based on unsolicited small deposits followed by fraud withdrawal demands. These can be referred for an alert towards such potentialities of the danger in order to adopt carefulness towards those threats.
NPCI clarified the situation, and the users can feel safe using the UPI platform. It further urged users to be alert and aware of the situation and to understand the procedures of UPI to avoid fraud.
