The rise in cases of fake UPI payments is raising concerns among merchants

Small business owners are reportedly being targeted by fraudsters using fake UPI payment receipts, prompting traders and the police to urge caution. Several such incidents have been reported from different parts of the state in recent months, with two silver traders in Muvattupuzha being the victims of the latest reported incidents.

In Muvattupuzha, a man allegedly duped the owners of two shops of ₹16,000 and ₹6,000 by showing them fake screenshots of payments after a recent purchase of ornaments.

The man is said to have convinced the owner that the payments had been completed by displaying the payment confirmation 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 traders.

The incidents come a month after the Perumpadappu police in Malappuram arrested a youth for allegedly using a fake app to simulate successful transactions on one of the most popular UPI platforms. He allegedly used the modus operandi to steal gold ornaments and a smartphone from various shops.

A similar scam was reported at a major flower show in Wayanad earlier this year.

Merchant forums have stepped up campaigns against such scams following repeated incidents. “Many of us have recently fallen victim to various types of UPI-based scams. Fraudsters often target small shops run by a single person. Frauds often happen because sellers don’t suspect the scammers,” said Ajmal Chakkungal, president, Muvattupuzha Traders Association.

Mr. Chakkungal said the association, which has 2,200 members, has launched an active campaign to alert traders and vendors of potential scams.

Meanwhile, cyber police sources said merchants have been repeatedly advised not to rely solely on payment screenshots, which could be manipulated or generated by fake apps.

Published – 05 Sep 2026 22:22 IST