NPCI Clarifies on Jumped Deposit Scam, Assures Security of UPI Platform

In response to recent media reports surrounding a new online fraud called the ‘Jumped Deposit’ Scam, the National Payments Corporation of India (NPCI) on Monday issued a statement clarifying that no fraudulent activities have been observed on the Unified Payments Interface (UPI) platform, and there is no evidence suggesting any breach of security.

The emergence of these reports, particularly in the context of users allegedly losing funds through unauthorized transactions, has raised concerns. However, NPCI has clarified several technical points to reassure the public and provide clarity on the functioning of UPI, which remains one of the most secure digital payment systems in the world.

Key Clarifications from NPCI:

• Transactions do not get approved automatically: The NPCI has pointed out that simply opening a UPI or banking app does not authorize or approve a transaction. In order for any payment to occur, users must actively navigate to the payment request and click on the ‘pay’ option, followed by entering their UPI PIN.
• No external party can directly withdraw funds: Contrary to the claims in some media reports, the NPCI also noted that no external party can directly request or withdraw funds from a user’s account through UPI. The UPI system is designed to be device-based, linking the payment account securely to the user’s registered phone number and device.
• PIN input is required for all transactions: Another common misconception addressed by the NPCI was the role of the UPI PIN. The organization clarified that entering the UPI PIN is required not just for payment transactions, but also for balance inquiries.

The NPCI also reassured the public about the overall security infrastructure of the UPI platform. With real-time payment capabilities and a high degree of interoperability across various banks and apps, UPI has been designed with stringent security protocols to ensure that users’ funds are safe. Additionally, UPI’s layered security features, such as encryption and multi-factor authentication, continue to make it one of the most trusted digital payment systems globally.

Despite the confusion sparked by recent media reports, NPCI encouraged users to continue using UPI with confidence.

Published On: January 15, 2025 at 10:19 AM IST

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