The Jumped Deposit Scam
A New UPI Fraud Targeting Users and How to Stay Safe What is the Jumped Deposit Scam?
Learn about the Jumped Deposit Scam, a UPI-based fraud targeting Indian users with small, unsolicited deposits to trick them into approving larger withdrawals. Discover how it works, NPCI’s clarification, and essential tips to stay safe.
The Jumped Deposit Scam is a relatively new cyber fraud targeting users of Unified Payments Interface (UPI) in India, where digital payments are made via mobile apps like Google Pay, PhonePe, or Paytm. It emerged prominently in late 2024 and gained widespread attention in early 2025, with warnings from police departments in states like Tamil Nadu and Maharashtra. The scam preys on victims’ curiosity and haste when they receive an unexpected small deposit, tricking them into authorizing larger fraudulent withdrawals. While media reports and social media have amplified fears, the National Payments Corporation of India (NPCI), which oversees UPI, has clarified that no verified instances of the scam exploiting UPI’s core security have been detected on the platform as of January 2025. Instead, losses typically occur due to user error, such as approving suspicious payment requests.
How the Scam Works
Fraudsters follow a calculated sequence to exploit trust and urgency:
- Initial Small Deposit: Scammers send a small amount (e.g., ₹50 to ₹5,000) to your bank account via UPI from an unknown source. This triggers an SMS or app notification, alerting you to the “credit.”
- Triggering Curiosity: You open your UPI or banking app to check your balance and may enter your UPI PIN for verification. (Note: Entering your PIN to view balance alone does not authorize any transaction—NPCI emphasizes this as a key misconception.)
- Follow-Up Manipulation: Immediately after, the scammer contacts you (via call, SMS, or WhatsApp) posing as the sender, claiming the deposit was a “mistake” or part of a larger transaction (e.g., “I meant to send ₹10,000 but only ₹100 went through”). They may send a UPI “collect money” or payment request for a larger sum (e.g., ₹500 or more).
- Exploiting the Moment: In a rush to “return” the money or “complete” the transaction, you approve the request by entering your PIN again. The scammer then drains your account through repeated or escalated requests. In some variations, they promise to send back the excess (e.g., “Approve ₹500, and I’ll refund ₹10,000”), but you end up losing the net difference.
This tactic has been linked to psychological manipulation, targeting less tech-savvy users like cab drivers or elderly individuals. Real-life cases include a Pune businessman who lost money after approving a fake “cashback” request and a cab driver in Kotak Bank who returned a ₹50,000 deposit only to face fraudulent charges.
NPCI’s Clarification and Why It’s Not a UPI “Breach”
In a January 13, 2025, press release, NPCI addressed media hype, stating:
– No frauds matching the described “automatic withdrawal” have occurred on UPI.
– UPI transactions are device-bound and require explicit PIN authorization for each payment—simply opening an app or checking balance doesn’t approve anything.
– Misconceptions (e.g., “entering PIN drains your account”) stem from users falling for fake requests or phishing links, not platform flaws.
– UPI remains secure, with over 10 billion monthly transactions processed safely.
The National Cyber Crime Reporting Portal has logged complaints, but many involve user-approved transfers rather than hacks. Tamil Nadu Police first warned about it in December 2024, noting it exploits “curiosity over unsolicited deposits.”
How to Protect Yourself
Follow these steps to avoid falling victim:
– Wait Before Acting: If you see an unexpected deposit, wait 15-30 minutes before checking your balance. This lets any pending fraudulent requests expire (UPI requests time out after a few minutes).
– Verify Independently: Contact your bank directly via official app or customer care to confirm the deposit—don’t use links from SMS or calls.
– Never Share PIN or Approve Blindly: UPI PIN is like a password; never enter it for “validation” on unsolicited requests. Decline or ignore unknown payment requests.
– Enter Wrong PIN Intentionally (If Needed): If pressured, input an incorrect PIN to reject a transaction without alerting the scammer.
– Enable Alerts and Limits: Set UPI transaction limits (e.g., ₹5,000 daily) and enable two-factor authentication. Use app features like “Block UPI ID” for unknowns.
– Report Immediately: If scammed, call 1930 (national cyber helpline) or report at cybercrime.gov.in within 24 hours for potential fund recovery. Banks must investigate under RBI guidelines.
Prevalence and Recent Trends (as of September 2025)
The scam peaked in early 2025, with warnings from police in Andhra Pradesh, Telangana, and Maharashtra continuing into mid-year. Social media posts from April to August 2025 highlight ongoing awareness campaigns, including videos from cyber experts and banks like Kotak811. No major new outbreaks reported post-NPCI clarification, but vigilance is key as fraudsters evolve tactics. In India, UPI frauds overall rose 20% in 2024-2025, per RBI data, emphasizing the need for education.
Stay skeptical of “free money”—if it seems too sudden, it’s likely a trap. By understanding and sharing this, you can help protect others.