Rise of UPI and Paytm Frauds in India
With India’s rapid digital payment adoption, UPI and Paytm transactions have revolutionized convenience—but also created new avenues for cyber frauds. Victims often lose money through fake links, customer care scams, or unauthorized access to their UPI IDs.
This guide explains how to recover money lost in UPI or Paytm fraud, the legal remedies available, and how to file a cybercrime complaint effectively under Indian law.
Common Types of UPI / Paytm Frauds
Phishing and Fake Payment Links
Fraudsters send fake UPI or Paytm links via SMS or WhatsApp, tricking users into sharing OTPs or authorizing debit transactions.
QR Code Scams
Victims are asked to “receive” money by scanning QR codes. In reality, scanning those codes sends money to the scammer’s account.
Fake Customer Care Numbers
Fraudsters impersonate Paytm or bank support executives to obtain sensitive details like UPI PIN, leading to unauthorized debits.
Immediate Steps After Losing Money in UPI or Paytm Fraud
1️⃣ Block Your UPI ID / Bank Account
Contact your bank’s helpline immediately to block UPI transactions and freeze your linked account.
2️⃣ Inform Your Bank’s Fraud Department
Submit a written complaint to your bank along with:
- Transaction ID
- Date and time of the fraud
- Amount lost
- Screenshots or communication proofs
3️⃣ File Complaint on NPCI / Paytm App
Raise a dispute on the Paytm app or through NPCI’s UPI help portal. Under RBI’s circular on “Customer Protection – Limiting Liability of Customers in Unauthorized Electronic Banking Transactions (2017)”, banks must act promptly to safeguard victims’ rights.
🖥️ How to File a Cybercrime Complaint Online (Step-by-Step)
Using the National Cybercrime Reporting Portal
- Visit https://cybercrime.gov.in
- Select “Report Other Cyber Crime”
- Provide personal details, transaction ID, and fraud description
- Upload relevant evidence (screenshots, messages, payment proof)
- Submit the complaint and note the Acknowledgment ID for tracking
Local Police Station / Cyber Cell Procedure
Alternatively, file a written FIR under relevant IPC and IT Act sections at the nearest Cyber Cell or local police station.
Carry ID proof, transaction details, and communication evidence.
Request a copy of the FIR or complaint acknowledgment.
Legal Remedies Available Under Indian Law
Section 66C & 66D of the IT Act, 2000
- Section 66C – Identity theft through fraudulent electronic means
- Section 66D – Cheating by personation using computer resources
Punishable with imprisonment up to 3 years and fine up to ₹1 lakh.
RBI Circulars on Electronic Payment Fraud
RBI’s 2017 circular protects customers from unauthorized transactions. If reported within 3 working days, liability is zero for the victim.
Rights of Consumers under the Consumer Protection Act, 2019
Victims can approach Consumer Commissions if banks or payment apps show negligence in security or delay in processing refunds.
IPC Sections
- Section 420 (Cheating)
- Section 468 (Forgery for purpose of cheating)
These can be invoked in addition to IT Act provisions.
What to Expect After Filing a Complaint
Investigation & Refund Process
Once your complaint is registered:
- The cyber cell begins tracing the transaction trail.
- The bank holds the disputed amount if possible.
- Refunds may be processed under RBI’s liability guidelines within 30–45 days.
Escalation to Ombudsman or RBI
If unsatisfied with the bank’s response, file a grievance under the RBI Ombudsman Scheme at https://rbidocs.rbi.org.in.
Real Case Example – UPI Fraud Refund After Cyber Complaint
A Patna-based shopkeeper lost ₹20,000 to a fake Paytm refund link. He immediately:
- Reported the fraud on cybercrime.gov.in
- Submitted FIR and complaint proof to his bank
- Cited the RBI’s 2017 liability circular
Result: His refund was approved within 45 days, demonstrating the effectiveness of timely reporting.
Preventive Measures to Avoid UPI / Paytm Scams
- Never share your UPI PIN, OTP, or banking credentials.
- Avoid clicking unverified payment links or QR codes.
- Always verify customer care numbers from official websites.
- Use multi-factor authentication for mobile banking.
- Check transaction history regularly.
For more safety tips, visit https://www.mygov.in.
Conclusion – Legal Help and Contact Resources
Digital payment frauds can affect anyone. The key is swift action and legal awareness.
If you’re a victim of UPI or Paytm fraud, file a complaint immediately, preserve all transaction evidence, and contact a legal expert for guidance.
Victim of UPI or Paytm fraud? Get free legal guidance from verified experts on legal.bihar.in or file your cyber complaint today!
Frequently Asked Questions (FAQ)
Can I recover money lost in UPI fraud?
Yes. Report to your bank and file a complaint on cybercrime.gov.in within 24 hours for better chances of refund.
How long does it take to get the refund?
Usually 30–45 days depending on investigation and RBI’s liability guidelines.
Where can I file a Paytm fraud complaint?
On the Paytm app, customer care, or through the National Cybercrime Portal.
What documents are required for cyber fraud complaints?
Transaction screenshot, bank statement, ID proof, and fraud communication evidence.
Is the RBI responsible for refunding UPI fraud losses?
No, but RBI mandates banks to compensate if reported promptly.
Can I go to the consumer court for online payment fraud?
Yes, if there’s deficiency in service or bank negligence.
What is Section 66D of the IT Act?
It penalizes cheating by personation using computer resources (cyber fraud).
What should I do first after a UPI scam?
Immediately inform your bank and freeze the account to prevent further loss.
Are QR code scams common in India?
Yes, scammers often trick users into scanning fake QR codes that debit funds.
Can the police trace UPI fraudsters?
Yes, cyber cells can track linked bank accounts, IPs, and mobile numbers.
References
- National Cyber Crime Reporting Portal
- RBI Circular: Customer Protection – Limiting Liability of Customers (2017)
- MyGov Citizen Awareness Portal
- Information Technology Act, 2000 – Sections 66C & 66D (indiankanoon.org)
Author Bio
About the Author – Advocate Tabish Ahmad
Advocate Tabish Ahmad (B.A. LL.B., LL.M., Diploma in Cyber Law – GLC Mumbai) is a Certified Cyber Law Practitioner and practising Advocate at the Patna High Court. He specializes in Cyber Crime, GST Litigation, and Tax Appeals, with extensive experience in representing clients before judicial and quasi-judicial forums.
He serves as President of the Cyber Lawyers Association and is a Member of the Advocates’ Association, Patna High Court. As a Mentor at the Indian Tax Academy and JurisCrack, he guides young lawyers and students in cyber and tax law practice.
Author of several books on Cyber Crimes, Taxation, and GST, Advocate Tabish Ahmad is recognized for his practical insights on digital law, data privacy, and cyber fraud defence.