What every merchant should know about new fraud trends

Mahesh, a small-town shopkeeper, runs a quaint condiments store. A new resident in the area began frequenting the shop, buying small items daily and gradually building trust with Mahesh. One day, the resident mentioned that he was organizing a housewarming ceremony and needed Mahesh’s help to procure a list of items. The total cost came up to Rs.10,000. After receiving the goods, the resident stood beside Mahesh at the counter, scanned the QR code, and appeared to make the payment. Mahesh, seeing the complete transaction flow on the resident’s phone, believed the payment was successful. However, the resident was actually a fraudster who used a fake payment app designed to mimic an authentic one, giving Mahesh the impression that the money had been transferred when, in fact, no payment was ever made.

If you are a merchant, you should be aware of this alarming fraud trend involving fake payment apps. Read on to find out more!

What are Fake Payment Apps?

Fake payment apps are counterfeits of legitimate payment applications. They closely resemble the UI, color schemes, and overall appearance of popular payment apps, often replicating the entire payment process – making them hard to distinguish at a glance. Some of these fraudulent apps further enhance the illusion by imitating the sound of a payment notification, such as a beep or chime, to falsely suggest that a payment has been received. Also, they can produce convincing payment information to show a successful transaction, which is challenging to distinguish at a quick glance.

Tips to stay safe from Fake Payment Apps

To protect your business, be vigilant and follow these tips to stay safe:

• Check Transaction History: Always verify transactions through your payment app or bank account. Do not rely solely on screenshots or notifications.
• Inconsistent Information: Look for discrepancies in the transaction details. Fake apps may have subtle errors or inconsistencies that can alert you to a scam.
• Pressure Tactics: Be wary of customers who rush you to complete a transaction without allowing time for proper verification.
• Unknown Apps: Familiarize yourself with legitimate payment apps commonly used in your region. If a customer presents a payment through an unfamiliar app, proceed with caution.

Best Practices for Merchants

Here are a few steps you can take to safeguard your business against fake payment app scams:

1. Educate Your Staff: Ensure that all employees are aware of this scam and know how to spot fraudulent transactions. 
2. Implement Verification Procedures: Develop a standard process for verifying payments before goods or services are provided. This might include checking the transaction ID or waiting for confirmation from your payment processor.
3. Report Suspicious Activity: If you encounter a suspected fake payment app, report it to the relevant authorities and your payment processor immediately.

In case you have been duped or discover a fake payment app, you can immediately raise the issue in the following ways: 

1. PhonePe app: Go to the Help section and raise an issue under “have an issue with the transaction” option. 
2. PhonePe Customer Care Number: You can call PhonePe customer care on 80–68727374 / 022–68727374 to raise an issue, post which the customer care agent will raise a ticket and help with your issue. 
3. Webform submission: You can also raise a ticket using PhonePe’s webform, https://support.phonepe.com/ 
4. Social media: You can report fraudulent incidents via PhonePe’s social media handles: 

• Twitter: https://twitter.com/PhonePeSupport 
• Facebook: https://www.facebook.com/OfficialPhonePe 

5. Grievance: To report a grievance on an existing complaint, you can login to https://grievance.phonepe.com/ and share the ticket ID previously raised. 
6. Cyber cell: Lastly, you can report fraud complaints at the nearest Cyber Crime cell or register a complaint online at https://www.cybercrime.gov.in/ or contact the Cyber Crime Cell helpline at 1930.

Stay safe, stay vigilant, and keep your business secure.