Scammers are using clever tactics to target UPI users with a new scheme called the Jumped Deposit Scam.

They transfer small amounts of money into your bank account to quickly gain your trust.

Then, when you enter your UPI PIN to check or confirm the deposit, you unknowingly fall victim to the fraud.

This scam is gaining popularity as cybercriminals continue to find new ways to steal money. While the Unified Payment Interface (UPI) has become a widely used and convenient payment method in India, its ease of use can also lead to significant losses if you're not cautious. Read on to learn more about this rising UPI scam.

What is the Jumped Deposit Scam and How Does it Work?

Scammers are employing clever strategies to exploit UPI users in the Jumped Deposit Scam. They first transfer a small amount of money into your bank account, knowing you'll likely mistake it for a wrong transfer from someone else. However, this is a trap.

Once you notice the deposit, they send multiple payment collection requests, urging you to refund the money. Instead of logging into your UPI app directly, the victim clicks on suspicious links to verify their bank balance or process the collection. By entering their UPI PIN, they unknowingly authorize a fraudulent transaction.

As explained by Vikram Babbar, Partner at EY Forensic & Integrity Services, "In this scam, fraudsters initially deposit a small sum into a victim’s account via UPI. Once the victim notices the deposit, the fraudster then contacts them, requesting a larger sum, often with a fabricated story.

The victim, curious about the unexpected deposit, opens their banking app to verify the balance and enters their UPI PIN. This is when the fraudster sends a fake payment request. When the victim authorizes the payment, the fraudster takes the difference between the small deposit and the larger requested amount."

Another expert, Shetal R. Bhardwaj, an executive member of the Association of Certified Financial Crime Specialists (ACFCS), explains that this scam takes advantage of human curiosity, trust, and a lack of understanding about digital payments. Victims often mistake unexpected deposits for genuine errors and feel compelled to return the money.

Vikram Babbar from EY adds, "In these types of scams, fraudsters initiate the process by transferring a small amount of money using UPI to an unsuspecting person. With the increase in UPI transactions, it's easy to make mistakes if the UPI ID or phone number is entered incorrectly. Fraudsters exploit this, crafting a convincing story to explain the erroneous payment, followed by an emotional plea for the victim to return the money. Vulnerable victims are then either sent a QR code or a malicious link."

Initially sending a small amount, the fraudster later steals a larger sum. The scam begins with the fraudster sending a "collect money" request, often followed by a call or SMS, claiming the victim has won a reward or prize.

To further manipulate, scammers create a sense of urgency, causing victims to panic and act impulsively. "In such a state, victims stop thinking logically. Fraudsters use emotional tactics to push for immediate action. Many fall for the misconception that entering a UPI PIN only verifies the balance rather than authorizing payments. And because small, seemingly harmless deposits reduce suspicion, the scam becomes even more effective," says Bhardwaj.

Why Do People Fall Victim?

These scams exploit human psychology—curiosity, trust, and urgency. The small deposit makes people feel obligated to return the extra money, and the scammer’s emotional manipulation pressures them into making a hasty decision.

What You Can Do to Protect Yourself

Be Skeptical of Unexpected Deposits: If you get an unexpected deposit, don’t act immediately. Contact your bank or UPI provider to verify the transaction.

Never Share Your UPI PIN: Your UPI PIN should only be used for authorizing payments. It’s never required for checking your balance or verifying deposits.

Ignore Emotional Appeals: Be wary of calls or messages pressuring you to act quickly. Scammers will often create a sense of urgency to trick you into making impulsive decisions.

Learn How UPI Works: Understanding how UPI transactions function will help you avoid falling for these tricks.