Rise in fake UPI payment cases leaves merchants worried

Owners of small businesses are allegedly being targeted by scammers using fake UPI payment confirmations, prompting the merchant community and the police to urge caution. Several such incidents have been reported from different parts of the State in recent months, with two silver merchants in Muvattupuzha being the victims in the latest reported incidents.In Muvattupuzha, a man allegedly duped the owners of the two shops of ₹16,000 and ₹6,000, respectively, by showing them fake screenshots of payments after purchasing ornaments recently.The man reportedly convinced the owners that the payments had been completed by displaying payment confirmations on his mobile phone. CCTV footage of the incident at one of the shops has gone viral. The Muvattupuzha police have launched an investigation following complaints from the merchants.The incidents come a month after a youth was arrested by the Perumpadappu police in Malappuram for allegedly using a fake application to simulate successful transactions on one of the most popular UPI platforms. He reportedly used the modus operandi to steal gold ornaments and a smartphone from different shops.A similar fraud was reported at a major flower show in Wayanad earlier this year.Merchants’ forums have stepped up campaigns against such frauds in the wake of the repeated incidents. “Many of us have been falling prey to different types of UPI-based frauds of late. Often, the fraudsters target small-scale shops run by a single person. The frauds frequently occur because the sellers do not suspect the scammers,” Ajmal Chakkungal, president of the Muvattupuzha Merchants Association, said.Mr. Chakkungal said the association, which has 2,200 members, has started an active campaign to sensitise merchants and vendors to potential frauds.Sources in the cyber police, meanwhile, said traders had repeatedly been advised not to rely solely on payment screenshots, which could be manipulated or generated using fake applications. Published - September 05, 2026 10:22 pm IST