How to Identify Fraudulent Subscription Mandates

A subscription mandate or autopay is an automated instruction that you can give your bank to automatically deduct funds from your account for recurring payments, such as OTT subscriptions, utility bills, or EMI payments. While subscription mandates have replaced manual scheduled payments and made it easy and seamless to make recurring payments, this digital convenience comes with a few cybersecurity risks. 

Scammers exploit the autopay feature and send random Collect Requests or Mandate Approvals hoping you will click it in a rush. They might disguise these as “Electricity Bill Pending”, “Lottery Tax Processing” or  “KYC Update Fee” from a random or illegitimate phone number.

How to Spot a Fraudulent Mandate

There are always tell-tale signs to spot a fraudulent mandate request. Here’s what you should watch out for:

1. One time or recurring payment type: If you are paying a one-time electricity bill, you should never see the word “Recurring” on the Approval Request. Read the message carefully before you approve it. Also, check if the request has come from a verified biller (like BESCOM or Jio) or a random mobile number. On PhonePe, verified billers have a Green Tick.
2. Verify: If you are unsure if a mandate is legit or fraudulent, go to your PhonePe Profile > Autopay Settings. If you see a mandate there that you do not recognize, delete it right away.
3. Source: Real mandates typically begin within the merchant’s app (e.g., you choose PhonePe for autopay within the Netflix app). Scam mandates are usually a random SMS link or a pop-up.

Remember, you never need to enter your UPI PIN to receive money. If someone says “Scan this QR to get your refund”, they are scamming you.

PhonePe’s Pre-Debit Notification

At PhonePe, we believe you should never be surprised to see debits in your account. That is why we built a safety layer: The 24-Hour Reminder. Here’s how it works:

1. The Warning: For any recurring AutoPay set up on PhonePe, we send you a notification 24 hours before the scheduled deduction.
2. The Opportunity: If you receive this notification and think, “Oh no, I don’t use that app anymore!”, you have 24 hours to delete the autopay. Simply go to your PhonePe Profile > Autopay Settings and delete the mandate.

PhonePe Safety Tip: Did you know you can pause an Autopay? If you are going on vacation or just want to take a break from a service, you don’t have to cancel it fully. Just hit Pause in your Autopay settings to stop deductions temporarily.

What to do if you’re a victim of a Subscription Mandate scam

If you suspect you have been targeted by a scam, immediately check your “Autopay Settings” in your PhonePe app and cancel the mandate. Report it immediately. Every second matters.

Reporting on PhonePe:

• PhonePe App: Go to the Help section and raise a complaint.
• PhonePe Customer Care: Call 80-68727374 / 022-68727374.
• Social Media Reporting:
  • Twitter: PhonePe Support
  • Facebook: PhonePe Official
• Grievance Redressal: File a complaint at PhonePe Grievance Portal.

Reporting to Authorities:

• Cyber Crime Cell: File a complaint online at Cyber Crime Portal or call 1930.
• Department of Telecommunications (DOT): Report suspicious messages, calls, or WhatsApp /Telegram fraud via the Chakshu facility on Sanchar Saathi Portal.

Important reminder — PhonePe never asks for confidential or personal details. Ignore all mails claiming to be from PhonePe if they are not from the phonepe.com domain. If you suspect fraud, please contact the authorities immediately.