New UPI scam exposed in Bengaluru: Here’s how fraudsters can cheat you!

Fraudsters using a fake UPI-like app cheated over 10 shops in Yelahanka New Town by showing fake payment confirmations and fleeing without paying.

Bengaluru traders have been put on high alert after a gang of fraudsters used a fake digital payment application to cheat mobile and food shop owners in Yelahanka New Town. The gang, often wearing masks, scanned QR codes, showed fake payment confirmations, and fled without actually transferring any money.

According to complaints filed at the Yelahanka New Town Police Station, more than 10 shops have fallen victim to this scam, leading to financial losses running into thousands of rupees. The local mobile shop association has formally lodged a complaint, urging police to take swift action.

The fraudsters used a fake mobile application that looks and functions like popular UPI platforms such as PhonePe. The app creates a false transaction screen, showing that money has been sent, while no amount is actually credited to the merchant’s bank account. In some cases, even scanner sound boxes announce a credit alert, making the fraud harder to detect instantly.

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Police said the fake app can simulate transactions of up to Rs 1 crore, but only displays a successful payment message without transferring any real money. Shopkeepers usually realise the fraud only later, after checking their bank statements.

In one case, Vinayaka Mobile Shop was cheated of Rs 7,000, after the gang scanned the QR code, claimed the payment was done, and quickly left the store.

At Shahid Biryani Centre, the gang had earlier eaten biryani and escaped without paying. They repeated the act later during peak hours, using the fake app. The fraud came to light only when the shop owner noticed that the earlier payment had never been credited.

Another trader, Dinesh Mobile Shop, reported a loss of Rs 15,000, after the gang purchased OnePlus earbuds, showed a fake payment confirmation, and disappeared.

Following multiple complaints, police have launched a detailed investigation, scanning CCTV footage and tracking digital evidence to identify and arrest the accused. Authorities have also warned traders to verify payments directly in their bank apps before handing over goods.