Although digital money transactions offer ease, several disadvantages have also emerged. Reports of online scams and fraud appear frequently in the news. Recently, attention has been drawn to a new scam known as the Jumped Deposit Scam, which anyone involved in online transactions should be aware of.
The Tamil Nadu Police had issued a warning regarding this particular scam just days ago. They cautioned individuals engaging in online transfers or receiving deposits to exercise caution, as this scam could potentially lead to significant financial losses.
In the Jumped Deposit Scam, the scammers initially deposit a small sum of money into the victim’s account. Following this, they contact the individual, claiming that the funds were mistakenly transferred and request a return of the money. When recipients hear about the unexpected deposit, they often check their accounts by entering their UPI PIN, allowing the scammers to steal money from their accounts. This highlighted the necessity for vigilance if an unexpected deposit appears.
NPCI clarification
However, National Payments Corporation of India (NPCI) recently provided clarification regarding the Jumped Deposit Scam, addressing several technical misconceptions. They emphasized that no fraudulent incidents, as described in various reports, have been observed on the UPI platform.
The NPCI highlighted key points to ensure users understand the security of the system: simply opening a UPI or banking application does not automatically authorize a transaction; users must intentionally navigate to the payment request and select the ‘pay’ option followed by entering their UPI PIN to authorise any transaction.
Moreover, they assured that no external entity could request or withdraw money directly from an individual’s account. UPI operates as a device-based payment system, linking payment accounts securely to the user’s registered mobile number and device. This ensures that only the user can initiate transactions or withdrawals, thereby preventing unauthorized access to their funds.
Lastly, entering the PIN is necessary for even balance inquiries, but it does not automatically authorize any payment or withdrawal requests, as those transactions are treated separately.