NPCI clarifies on ‘Jumped Deposit’ scam, addresses technical misconceptions

The National Payments Corporation of India (NPCI) clarified recent media reports about a so-called “Jumped Deposit” scam, emphasizing that no fraudulent incidents, as mentioned in the reports, have been found on the UPI platform, on Monday.

“In light of recent media reports concerning a new online fraud called ‘Jumped Deposit’ Scam, we have observed certain inaccuracies and technical discrepancies in these descriptions, that has led to unnecessary panic and confusion among users about the UPI platform,” NPCI said in a statement.

“We would also like to clarify that no instances of fraud, as described in the articles on ‘Jumped Deposit’ Scam, have been observed on the UPI platform,” it added.

According to media reports, scammers are targeting UPI users by making small deposits into their accounts and then using psychological tactics to deceive them into authorizing larger payment requests.

UPI is safe

The company emphasized that UPI is a device-based payment system that securely connects a user’s account to their registered mobile number and device.

“Simply opening a UPI or bank application does not automatically approve a transaction. Users must explicitly authorise a payment request by entering their UPI PIN. Without this step, no transaction can be processed,” NPCI clarified.

“No external party can directly request or withdraw funds from a user’s account…Only the user can initiate transactions or withdrawals, ensuring that others cannot access their funds,” it added.

The report referenced experts who explained how scammers take advantage of users’ trust and their limited knowledge of UPI procedures. It suggested that many individuals become victims because they mistakenly believe that entering a UPI PIN confirms their balance, rather than authorizing payments.

“Inputting the PIN is required even for balance enquiry transactions, and it does not automatically authorise any withdrawal or payment requests which is treated as a separate transaction,” NPCI said.

The Tamil Nadu Police had previously cautioned users about a scam where fraudsters deceive unsuspecting victims by making unsolicited small deposits, followed by false withdrawal requests.