It’s well-known how much the Unified Payments Interface (UPI) has revolutionized the Indian economy. With a smartphone, you can transfer money to your bank account, pay bills, and purchase.
UPI quickly gained popularity because of its usefulness for daily financial transactions and other needs.
However, security is crucial when using UPI, like any other digital platform. As more and more people use UPI apps for day-to-day transactions, protecting financial data has become essential.
Users need to know how to perform secure UPI transactions. Financial fraud can be avoided if you are careful before getting cheated.
Here are some tips for safe UPI usage:
1. Understand how UPI works: Before learning about security tips, it is essential to understand how UPI works. UPI links your bank account to your smartphone. Users create a Virtual Payment Address (VPA) as an alternative to their bank account number.
UPI ID is used without sharing sensitive bank details when making payments, which helps avoid data disclosure. UPI uses several security measures, such as two-factor authentication, transaction encryption, and one-time passwords (OTP).
However, even with these security measures, if users neglect their credentials or are unaware of common scams, their UPI can be a victim of financial fraud.
2. Choose a secure UPI app: The first step to securing your transactions is to choose a trusted UPI app. Downloading a UPI app from an unsupervised or dubious source can lead to fraud.
It’s essential to identify UPI apps that lack security measures. UPI apps offered by leading banks and fintech companies like Bajaj FinServ have strict security, so it’s better to use them.
Look for apps supported by recognized banks and regulated by the National Payments Corporation of India (NPCI). Check the app store for reliability and user reviews, and choose apps with good ratings.
Also, make sure that the app you choose is updated regularly. An updated app means the developer is fixing bugs and implementing security measures.
3. Set a strong UPI PIN: Set a robust Personal Identification Number (PIN) for your UPI account. This is very important for its security.
A weak or predictable PIN can lead to hacking and unauthorized access to your account. To avoid this, create a robust and hard-to-guess PIN.
Tips for creating a strong UPI PIN: Avoid common combinations. For example, do not enter consecutive numbers like 1234 as a password. Also, avoid using easily guessable numbers like your birth year or phone number.
Do not use the same PIN for your other accounts (like an ATM PIN). When a password is stolen, other accounts should not be affected.
Update your PIN frequently to prevent unauthorized access. Keep your UPI PIN private from everyone, and don’t even tell your family and friends.
4. Be Alert on Phishing Scams: Phishing attacks are a common danger for UPI and UPI Lite users. Fraudsters pretend to be representatives of banks and payment apps to collect UPI PIN, OTP, or other sensitive information. Cheating is done through phone calls, text messages, and emails.
How to spot phishing attempts: Suspicious links: Avoid clicking links from unknown or suspicious numbers. These links lead to fake websites designed to steal your information—unexpected payment requests: Never allow payments you have not initiated. Fraudsters may send fake payment requests, and accepting them can drain your account.
Requests for UPI PIN or OTP: Standard organizations will not ask for your UPI PIN or OTP through phone calls or messages. Do not respond to any such request, and don’t tell OTP.
5. Use Two-Factor Authentication (2FA): Two-factor authentication (2FA) adds security to your UPI transactions. Bajaj Pay secures transactions using two-factor authentication.
With 2FA, users must complete a second verification step and enter their UPI PIN. This is usually an OTP or in-app verification sent to your registered mobile number.
Advantages of Two-Factor Authentication:
High security: Even with a UPI PIN, transactions cannot be completed without an OTP or second verification factor.
Real-time alerts: Most UPI apps send an OTP when a transaction starts, allowing users to cancel it immediately if they see a suspicious transaction. Also, link your mobile number to your bank account and keep it secure. Only then will you get OTPs and alerts?
6. Monitor your transactions regularly: It is essential to keep track of your transaction history to detect unauthorized or suspicious activity. UPI apps like Bajaj Pay record all transactions, making it easy for users to review their payments, recharges, and transfers.
Best practices in transaction monitoring:
Check Statements Regularly: Review transaction history by logging into your UPI app and bank account. If you find any transactions you do not recognize, immediately clarify them with the concerned bank.
Enable Email Alerts without SMS: You can receive SMS or email notifications that a payment has been made from your account every time a transaction occurs. This alert enables immediate detection of unauthorized transactions.
Review auto-debit payments: Some UPI apps allow users to set up automatic bill payments or subscriptions. Despite this convenience, it is important to monitor these transactions constantly to avoid accidental ones.
7. Log out after using UPI: It is essential to log out from the app after making transactions through UPI apps. While apps usually have automatic time-out features, logging yourself out individually gives your security an extra layer of protection.
Not logging out of the UPI app after a transaction can pose several risks, especially if your phone is lost or stolen.
Main reasons for logging out: It is essential to avoid unauthorized use. If you don’t log out of the app using your phone, thieves or others can easily access your UPI app when they get access to your phone. This gives them direct access to your bank account, so they can’t make payments if logged out.
Additional Permission: If you log out, the app will require a UPI PIN or another authentication method to re-enter your account, making it difficult to re-enter.
As UPI becomes a vital part of daily financial operations, it is imperative to keep your transactions secure. Choose a trusted UPI app like Bajaj Pay and implement robust security measures.
Be alert for fraud, such as phishing, and monitor your transactions regularly. These measures can significantly reduce the risks associated with digital payments. You can enjoy a comfortable, secure UPI experience by staying updated and vigilant.