Scammers in India have developed a method using UPI “collect” requests to dupe users into making payments to gambling wallets. These fraudsters pose as friends or customer service reps and send requests via apps like Google Pay or PhonePe.
Victims unknowingly approve the payment, thinking it’s a refund or verification process. The funds are routed to illegal betting sites operating under random merchant names.
Banks are being urged to enhance visibility into UPI transactions and notify users of the actual merchant category before approval. Users should never accept unknown requests without verification.
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