The Unified Payments Interface (UPI), an Indian real-time mobile payment system, is being used by scammers headquartered in China in conjunction with phoney loan applications to defraud victims of their money, according to a research from threat intelligence company CloudSEK.
According to CloudSEK experts, “UPI service providers currently operate without coverage under the Prevention of Money Laundering Act (PMLA),” which makes it very easy for fraudsters to take advantage of the platforms.
The con artists use the guise of loan app providers and occasionally assume the identity of legitimate businesses to entice victims with the promise of rapid money and simple repayments in exchange for a charge equal to five to ten percent of the loan.