Jumped Deposit Scams: Know when to enter your UPI PIN

Your UPI PIN is the final gateway between your money and any transaction. Each time you enter it, you’re authorising funds to leave your account – which is why it is critical that you pause to verify what you approve. Yet in the rush of daily transactions, this simple step is often overlooked, leaving users vulnerable to sophisticated social engineering scams. One such scam is a Jumped Deposit Scam.

Here is the breakdown of how it works and how you can stay safe.

What exactly is a Jumped Deposit Scam?

When fraudsters trick victims into unknowingly authorizing a payment request using UPI, believing they are receiving money, it is called a Jumped Deposit Scam. The “jumped” in the term refers to how quickly money moves out of your account once a scammer tricks you. They transfer or “jump” your funds across a dozen different bank accounts in seconds, making the money trail nearly impossible to follow.

Unlike other scams that try to steal your OTP, this one tricks you into entering your UPI PIN yourself.

How the trap is set

1. The Small Credit: You receive a notification or SMS for a tiny amount, maybe ₹10 or ₹50 deposited into your account.
2. The Distress Call: Minutes later, you get a call. The person sounds stressed or tearful. They claim they sent money to your number by mistake and desperately need it back for a medical emergency or a bill.
3. The Distraction: While you are talking to them, they ask you to “open your app or SMS and check if money has been deposited in your account”. Depending on the concocted story the fraudster is trying to convince you with, the message would say “Refund from XYZ Bank”, “Cashback from ABC Store,” or “Deposit from Company Payroll”.
4. The Authorisation: The scammer then sends a fake QR code for a much larger sum, like ₹5,000 using a third-party app-generated link or a Fake QR code, similar to what you see when you make a payment at a store or when you shop online. In the rush to be helpful, you may enter the PIN thinking you are verifying the deposit or returning the wrongfully transferred ₹50. The moment the PIN is entered, a much larger amount is deducted from your account.

The psychology behind the scam

Experts highlight that these frauds are highly effective because they exploit basic human psychological factors to bypass rational thinking:

• Building Trust: Fraudsters establish credibility by transferring a small, legitimate amount of money into your account first. The fraudsters try to build credibility by transferring money into the user’s account
• Exploiting Curiosity and Trust: The scam works by exploiting curiosity, trust, and a lack of awareness about digital payments. The unexpected deposit prompts the victim to investigate and feel a sense of obligation to return the mistakenly transferred money.
• Creating Urgency: Emotional tactics are used to force immediate action. Scammers create a sense of urgency with a convincing, fabricated story (e.g., medical emergency) so that the user acts quickly without taking a moment to think critically.
• Lack of Awareness: Many people mistakenly believe that entering a UPI PIN is required to verify their balance or receive money, instead of authorizing a payment.

How to protect your money from Jumped Deposit Scams

• Wait it out: If you get a random deposit and then a frantic call, don’t rush. Fraudulent Payment links often expire within 5-10 minutes. If you wait 15 minutes before opening your app, the trap will likely have disappeared.
• Verify Transaction Details: If you’re unable to wait for the cool off period, check the transaction details thoroughly – including the amount and receiver details. When accepting or approving any UPI request, it is important to read the transaction details carefully. Also, take note that a credit will not require approval.
• Direct them to the Bank: If someone genuinely sent you money by mistake, tell them to contact their bank to initiate a “wrongful credit” reversal. This is the official, safe way to handle errors. You are not obligated to send it back via a UPI request from a stranger.
• Check your Screen: Always look for the words “Paying” or “Sending to” at the top of the PIN screen. If you see those words, stop immediately. 
• Legit UPI Apps: Ensure that you use legit UPI apps from banks or reputed platforms like PhonePe which offer multi-layer security.

• Enable payment notifications: Keep SMS and email notifications enabled for all banking transactions so you can spot any unauthorized activity instantly. 

The rule you need to remember

Always remember that you never need to enter your UPI PIN to receive money. Whether it’s a refund, a cashback, a gift, or a “mistaken” transfer, if a screen asks for your PIN, it means money is leaving your account.

What to do if you’ve been targeted

If you suspect you have been targeted by a scam, 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.