UPI Fraud in India: Legal Remedies and How to File a Complaint [2025 Guide]

India has become the world’s fastest-growing digital payments hub, with UPI (Unified Payments Interface) recording over 14 billion monthly transactions in 2025. But with this explosive growth, UPI fraud cases are also rising at an alarming rate. From phishing links and QR code scams to fake loan apps, cybercriminals are targeting unsuspecting users daily.

According to the NCRB, cyber frauds involving digital payments increased by 18% in 2024, with Delhi NCR being one of the most affected regions. If you are a victim, understanding your legal rights, remedies, and complaint procedures is essential. This guide explains how to identify fraud, applicable laws, complaint filing process, and when to consult a cybercrime lawyer in Delhi.

What is UPI Fraud?

UPI fraud occurs when cybercriminals trick users into transferring money, sharing OTPs, or scanning malicious QR codes. These scams exploit trust, lack of awareness, and instant payment features of UPI.

Common UPI fraud methods include:

• Phishing links – Fake payment request links sent via SMS or WhatsApp.
  
• QR code scams – Fraudsters send QR codes claiming to “send money,” but scanning results in money being deducted.
  
• Fake loan apps – Instant loan apps that steal banking details.
  
• SIM swap fraud – Criminals clone SIM cards to access OTPs.
  

Legal Provisions Against UPI Fraud in India

Victims of UPI fraud are protected under several laws:

1. Information Technology Act, 2000
   
   • Section 66C: Punishes identity theft.
     
   • Section 66D: Covers cheating by impersonation using digital means.
     
2. Indian Penal Code (IPC)
   
   • Section 419 & 420: Cheating and dishonestly inducing delivery of property.
     
   • Section 406: Criminal breach of trust.
     
3. RBI Guidelines
   
   • Banks must follow the “Zero Liability Rule” for unauthorized electronic transactions if reported immediately.

Related Post : Cybercrime Laws in India

Step-by-Step Guide to File a Complaint Against UPI Fraud

Victims of UPI fraud must act quickly to recover money and hold fraudsters accountable.

1. Report to Your Bank Immediately

• Call your bank’s helpline.
  
• Use the UPI app to raise a dispute.
  
• Provide transaction details, screenshots, and SMS records.
  

2. File a Complaint on Cybercrime.gov.in

• Visit the official National Cybercrime Reporting Portal.
  
• Select “Report Other Cyber Frauds.”
  
• Submit transaction ID, screenshots, and fraud details.
  

3. Register an FIR

• Visit your nearest police station in Delhi NCR.
  
• File an FIR under relevant IPC & IT Act sections.
  
• If police refuse, you can approach the DCP or file a complaint under Section 156(3) CrPC.
  

4. Approach the RBI Ombudsman

If the bank delays or denies a refund:

• File a complaint under the RBI Ombudsman Scheme.
  
• RBI can direct banks to refund unauthorized UPI debits.
  

Victims should also consider consulting a criminal lawyer in Delhi for strong legal representation.

Role of Digital Evidence in UPI Fraud Cases

Evidence plays a decisive role in cybercrime cases. Preserve:

• SMS alerts and WhatsApp chats.
  
• Screenshots of fraudulent UPI requests.
  
• Bank statements showing unauthorized deductions.
  
• Call recordings (if any).
  

A cybercrime lawyer in Delhi can help present this evidence effectively before authorities.

How Banks Handle UPI Fraud Complaints

• Immediate freezing of funds in fraudster accounts (if reported on time).
  
• Refunds under RBI’s Zero Liability rule if delay is not the customer’s fault.
  
• Banks must respond within 90 days of a formal complaint.
  

When to Consult a Cybercrime Lawyer

Victims should consult a cybercrime lawyer when:

• Police refuse to file an FIR.
  
• The bank denies liability.
  
• Fraud involves large sums of money or organized syndicates.
  
• You need representation before court or RBI Ombudsman.
  

LegalCrusader offers expert guidance in cybercrime cases, banking fraud disputes, and criminal litigation in Delhi NCR.

Preventive Measures Against UPI Fraud

• Never share OTPs or PINs.
  
• Avoid clicking on unknown links.
  
• Verify UPI handles before transactions.
  
• Regularly update phone and UPI apps.
  
• Report suspicious apps to RBI/Google Play.
  

FAQs on UPI Fraud in India

Q1. How quickly should I report UPI fraud?
Immediately. RBI rules require reporting within 3 working days for zero liability.

Q2. Can I get my money back after UPI fraud?
Yes, if you report promptly. RBI’s zero liability rule ensures refund in genuine fraud cases.

Q3. Is UPI fraud a cybercrime or banking dispute?
Both. It involves cybercrime under IT Act and banking liability under RBI rules.

Q4. What if the bank delays my complaint?
You can escalate to the RBI Ombudsman or approach a cybercrime lawyer in Delhi.

Q5. Can UPI fraudsters be arrested?
Yes. Under IPC and IT Act, cyber fraudsters face imprisonment up to 7 years.

Conclusion

UPI fraud has become one of the biggest challenges in India’s digital economy. While technology enables convenience, it also opens doors for cybercriminals. Victims must act quickly report to the bank, file a cybercrime complaint, register an FIR, and preserve evidence.

Professional legal support often makes the difference between getting justice and losing money. At LegalCrusader, we specialize in cybercrime cases, banking fraud disputes, and criminal law representation in Delhi NCR. Whether you need help filing a complaint, pursuing refunds, or representing your case in court, our team is ready to protect your rights.

If you are a victim of UPI fraud, contact LegalCrusader today for expert guidance and representation.