New Delhi, 28th March 2023: The National Payments Corporation of India (NPCI) issued a statement today in response to recent media articles involving ‘KYC scams’. The NPCI has assured all users that any payment made through UPI does not expose the sender’s KYC details, nor does it lead to the user’s mobile or app getting hacked.
The statement read, “With reference to recent media/social media articles on ‘KYC scams’ – The connection to UPI is misleading and incorrect. We assure all users that any payment through UPI does not expose the sender’s KYC details and neither does it lead to a user’s mobile or App getting hacked. UPI works on the principle of payment using a Virtual Payment address or UPI ID – using secure method of device binding and UPI PIN to transfer money. KYC details are not used or shared during a UPI transaction.”
The NPCI went on to reassure the public that UPI continues to remain a safe and secure payment method. They also stated that the intention of some of these articles and social media messages are to mislead and create mistrust about a payment method that has been widely adopted across the country.
This statement comes in the wake of recent media reports on ‘KYC scams’, where fraudsters obtain personal information from individuals under the guise of completing KYC (Know Your Customer) procedures. These fraudsters then use the obtained information to carry out fraudulent activities.
The NPCI’s statement serves to clear the air and reiterate that UPI remains a safe and secure payment method. It is hoped that this statement will help allay any fears or concerns that the public may have had about UPI’s safety and security.