This article is more than 4 month old.

What's the Paytm spoof app fraud; and how not to get scammed


'Paytm' alert: Using the deceptive fake app, scammers duped merchants into believing that a payment was made when no such amount had been credited.

What's the Paytm spoof app fraud; and how not to get scammed
As cashless payments become more popular, payment options like Paytm are becoming integral to people’s daily lives. Paytm, Google Pay, BHIM, PhonePe and others have simplified the process of paying through smartphones with just a few simple steps. But where tech and finance meet, danger often lurks. So inevitably, scams have started to catch up with these easy payment platforms.
Recently, Mumbai Police arrested three individuals for trying to pay a bill of Rs 49,000 at a restaurant with a fake Paytm app. The fake app resembles the original Paytm app down to the animations, sound effects and user interface but does not actually transfer any money when used.
The three had used the app to defraud the restaurant and were caught only when one of them had returned to the restaurant and attempted to pay again using the same fake app. He was caught by the owner, who checked for confirmation of the payment.
Apart from this incident, several reports of similar incidents have been shared online.
Scammers are able to use the spoof app to show merchants that a payment has been made when no such payment has taken place and run away before the merchant is any wiser.
Precautions to take
To prevent being duped in a similar manner, individuals should ensure that they check their other notifications to confirm that a transaction has been made. Paytm sends in-app notifications for their business app, along with text messages and emails on the successful transfer of credits. Additionally, merchants without smartphones may also have the Paytm Sound Box 2.0 and Paytm Sound Box, which notify the merchant visually and with audio that a payment has been successfully made.
next story

Market Movers