South Asia’s booming fintech sector is facing a new threat—organized gambling fraud via UPI. Authorities across Bangladesh and India report a surge in illegal betting platforms using UPI wallets to facilitate untraceable transactions.
These platforms often pose as fantasy games or investment portals. Users are asked to deposit money using UPI IDs linked to fake merchants. Once funds are transferred, the user either loses the amount or is asked to pay more in exchange for promised returns.
Investigations have uncovered dozens of UPI IDs tied to shell companies and cloned apps. The lack of cross-border payment oversight and weak KYC checks allow scammers to move money seamlessly between countries.
Financial experts warn that unless regulators tighten controls over UPI-linked services, the region could see a dramatic rise in gambling-related money laundering.
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