The Jumped Deposit Scam: A New Cyber Threat Exploiting Digital Payments... by Gurjot Singh Kaler

Chandigarh: Imagine running a small mobile accessories shop when a well-dressed customer walks in, selects items worth ₹5,000, and confidently opts to pay via UPI.

He enters your UPI ID, pretends to complete the transaction, and shows you a convincing payment confirmation screen. Simultaneously, an SMS—seemingly from your bank—arrives, stating that ₹5,000 has been credited.Trusting the payment, you hand over the items, only to discover later that no money ever reached your account.

The scammer, using a forged payment receipt and a fake SMS alert, has vanished, leaving you with a loss. This scenario illustrates the Jumped Deposit Scam, a rising cyber fraud in India that preys on trust and digital transactions.

As digital payments become the norm in India, cybercriminals are constantly adapting their tactics to exploit weaknesses in banking systems and online transactions.

While scams like phishing, UPI frauds, and fake job offers have been widely reported, a more sophisticated scheme—the Jumped Deposit Scam—is now emerging as a major threat.

The Jumped Deposit Scam is a deceptive financial fraud in which cybercriminals exploit digital banking and UPI systems to create the illusion of a successful transaction, even though no actual money has been transferred.

Unlike conventional scams where funds are directly stolen from an account, this fraud relies on misleading victims into handing over goods, providing services, or even disbursing cash based on a payment that never truly happened.The term "Jumped Deposit" stems from the way fraudsters make it seem as though the money has instantly appeared in the victim’s account.

Scammers make the deposit appear to have "jumped" into the victim's account, even though no actual transfer has occurred. In reality, they achieve this deception through fabricated payment receipts, manipulated SMS notifications, and temporary credit entries that are later reversed.

Scammers carrying out the Jumped Deposit Scam typically target individuals and businesses that accept digital payments, posing as genuine buyers or clients. Once they establish contact, they claim to have transferred money via UPI, NEFT, or another digital payment method but, in reality, use deceptive tactics.

Some fraudsters generate fake payment screenshots that closely resemble authentic bank notifications, while others manipulate SMS alerts through spoofing to falsely confirm a deposit.

In certain cases, they initiate a transfer that temporarily appears in the victim’s account but is later reversed due to insufficient funds.To ensure a swift escape, scammers create a sense of urgency, pressuring victims with excuses like being in a hurry or insisting that the transaction is complete.

By the time the deception is uncovered, they have disappeared—often using untraceable phone numbers and false identities, making it extremely difficult to track them down.

The Jumped Deposit Scam is a deceptive cyber fraud that preys on curiosity, trust, and a lack of awareness about digital transactions. Fraudsters initiate the scam by transferring a small amount—often in round figures like ₹200 or ₹300—into a victim’s bank account via UPI.

Shortly after, they contact the recipient, claiming the deposit was accidental and urgently request a refund. To appear credible, they may fabricate a story about financial distress or an error in payment.

However, instead of providing a simple refund request, they send a collect money request or a malicious link. If the victim, unaware of UPI’s functionality, enters their PIN to "verify" the balance or process the refund, they unknowingly authorize a transaction—often for a much larger amount than the initial deposit.

Some scammers also trick victims into scanning fraudulent QR codes, leading to unauthorized fund transfers.To stay safe, it’s essential to recognize that entering a UPI PIN is never required to receive money—only to send it.

Unexpected deposits should always be verified directly through the bank rather than responding to the sender. Any requests for refunds should be carefully scrutinized, and suspicious payment requests should be declined. By staying vigilant and understanding how UPI transactions truly work, individuals can protect themselves from falling victim to this increasingly common scam.

Follow these tips to protect yourself from the Jumped Deposit Scam:

1. Always Verify Transactions Through Official Channels

• Do not rely solely on SMS or email confirmations, as scammers can manipulate these alerts.

• Directly check your bank statement or UPI transaction history through your bank’s official app or website before handing over goods or services.

2. Watch Out for Pressure Tactics

• Fraudsters often create urgency, insisting that you release goods or services immediately.

• If someone pressures you to act without verification, take a step back and confirm the transaction through your bank.

3. Be Cautious of Unexpected Deposits

• If you receive an unexpected deposit, do not assume it is legitimate.

• Contact your bank or UPI service provider to verify the source before taking any action.

4. Use Secure and Trusted Payment Platforms

• For high-value transactions, opt for secure payment gateways that hold funds until verification.

• Freelancers and online sellers should prefer platforms like Razorpay or PayPal for better security.

5. Never Share Your UPI PIN or Sensitive Information

• Your UPI PIN is used to authorize transactions, not to check balances—never disclose it to anyone.

• Banks and payment apps will never ask for your PIN, OTP, or passwords through calls or messages.

6. Avoid Engaging with Suspicious Requests

• Do not respond directly to unknown senders claiming to have deposited money in your account.

• Be wary of emotional appeals designed to make you act hastily.

7. Verify Buyer Identities for Online Sales

• When dealing with unknown buyers, request identity verification before proceeding with transactions.

• Avoid accepting payments from accounts that appear suspicious or unverified.

8. Report Fraud Immediately

• If you suspect a scam, report it to the National Cyber Crime Portal (cybercrime.gov.in) and your local police.

• Notify your bank immediately to prevent further unauthorized transactions. Quick action increases the chances of recovering lost funds.

Additional Security Measures for UPI Transactions

I. Device Binding and Secure Access

• UPI links your bank account to your registered mobile number and device, ensuring transactions can only be initiated from your authorized phone.

• Keep your registered SIM card secure to prevent unauthorized access.

II. Authenticate All Payment Requests

• Always review and confirm any payment request before approving. If a request appears unfamiliar, decline it.

• Be cautious of the "Request Money" feature, as fraudsters may misuse it to trick you into sending funds.

III. Download UPI Apps Only from Trusted Sources

• Use official banking and UPI apps from verified sources like the Google Play Store or Apple App Store.

• Avoid third-party applications that may compromise your financial security.

IV. Establish a Strong and Confidential UPI PIN

• Choose a strong UPI PIN and update it regularly to enhance security.

• Never disclose your PIN, even to someone claiming to be from your bank or a payment service provider.

V. Stay Updated on Cyber Threats

• Regularly educate yourself on emerging scams and cybersecurity best practices.

• Awareness plays a crucial role in safeguarding your digital transactions.

It also needs to be remembered that UPI transactions require explicit user authorization. Simply opening a banking or UPI app does not process any payment; the user must actively approve a request by selecting ‘Pay’ and entering their UPI PIN. Without this step, no transaction can take place.

Additionally, no third party can directly withdraw funds from a user’s account.

Since UPI is linked to a specific mobile device and registered number, only the account holder can initiate transactions, ensuring security against unauthorized access.

Even for balance inquiries, entering the UPI PIN is necessary, but this does not automatically authorize any payment or withdrawal.

Awareness and vigilance remain the strongest defenses against this cyber fraud, ensuring that technology serves as a tool for progress rather than deception.

February 20, 2025