NPCI cautions users against digital frauds, highlights 'common tricks'

The apex payments body has cautioned citizens to identify such scams based on themes such as unexpected calls from alleged government officials

With incidents of online frauds, including ‘digital arrest’ on the rise, the National Payments Corporation of India (NPCI) -- that oversees India’s retail payment systems -- has issued an advisory outlining steps to protect users against such scams.

 

It has asked citizens to identify such scams based on themes such as unexpected calls from alleged government officials, a fear-induced language from perpetrators, and attempts to coerce individuals to divulge sensitive bank details.

 

“Terms like ‘clearing your name (from involvement in an alleged crime)’, ‘assisting with the investigation’, or ‘refundable security deposit/escrow account’ might be used by scammers to persuade you into transferring money to specified bank accounts or UPI IDs,” the NPCI said in a note.

 

It added that authentic government officials or law enforcement agencies (LEAs) will never ask for money or investigate cases on phone or video calls.

 

A digital arrest refers to scams where fraudsters pretend to be law enforcement officials who trick victims into sending money or sharing personal information. These scamsters pretend to file fake cases against victims or their family members and initiate communication via digital channels such as video calls over Skype or WhatsApp, among others.

 

Users should report suspicious numbers and accounts to the National Cybercrime Helpline by dialling 1930. The NPCI has urged users to document interactions by saving screenshots and messages which can help LEAs during investigation.

 

The advisory comes as people continue to lose money to digital frauds.

 

Indians have lost Rs 485 crore to frauds on the Unified Payments Interface (UPI) across 632,000 reported incidents during the ongoing financial year 2024-25 (FY25) until September, according to data from the Ministry of Finance.

 

Since 2022-23, UPI-related frauds have accounted for a cumulative loss of Rs 2,145 crore across 2.7 million reported incidents. In 2023-24 (FY24) alone, 1.34 million fraud cases were reported, amounting to losses of Rs 1,087 crore.

 

To contain cases of ‘digital arrest’, the government has blocked more than 6,69,000 SIM cards and 1,32,000 IMEIs (International Mobile Equipment Identity) as reported by authorities as of November 2024.

 

The Indian Cyber Crime Coordination Centre (I4C) has blocked more than 1,700 Skype IDs and 59,000 WhatsApp accounts used for digital arrest scams. The I4C is set up by the Ministry of Home Affairs, an attached office to deal with all types of cybercrimes in the country.

 

The Union Home Ministry claims that more than Rs 3,431 crore has been saved in over 9.94 lakh complaints.