Fraudsters target small traders during Diwali via fake payment apps, authorities call for awareness

Cybercrime officials have warned small traders about a new scam involving fake payment apps during the Diwali festival. Fraudsters are reportedly using counterfeit versions of PhonePe and Paytm to trick merchants into believing payments have been made via QR codes.

The fake apps display confirmation messages showing money credited to the trader’s UPI ID, but no actual funds are transferred. The scamsters target traders in Gujarat and other cities, particularly small sweet shops and local markets that see heavy crowds during the festive season.

Cybercrime’s Hardik Makadia advised traders to verify that money has truly been received in their bank accounts after accepting payments. Authorities have urged merchants to remain vigilant against such fraudulent apps, especially during high-transaction periods like Diwali.