If you are stuck in such a situation, here is what to do.

A young man, Mr. Sharma, recently found himself in a distressing situation. He had been interacting with an online acquaintance, Mr. Verma, for over a year through a popular online multiplayer game. Trust had been established over this period. Mr. Verma offered to sell him a rare in-game digital item for ₹5,000. Believing him, Mr. Sharma transferred the amount using a UPI app called ‘QuickPay’ from his account with ‘Zenith Bank’. Immediately after receiving the payment, Mr. Verma ceased all communication and blocked Mr. Sharma on all platforms, without providing the digital item. Mr. Sharma was left cheated and wondering if there was any legal recourse to recover his hard-earned money.

Advice in such cases

Falling victim to a UPI scam, even by someone you consider a friend, can be disheartening. However, UPI transactions, while instant, leave a digital trail that can be traced. It is crucial to act swiftly. The “golden hour” after the fraud is critical. Your chances of recovering the money are highest if you report the incident to the relevant authorities immediately, as it may allow them to put a hold on the recipient’s account before the funds are withdrawn or transferred further.

Applicable Sections of Law

Such an act is a criminal offense under Indian law. The following legal provisions are generally applicable:

• Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section deals with ‘Cheating’. By dishonestly inducing you to transfer money with the promise of delivering a product and then failing to do so, the person has committed the offense of cheating.
• Section 316 of the Bharatiya Nyaya Sanhita (BNS), 2023: This pertains to ‘Criminal breach of trust’. When you entrusted the money to the person for a specific purpose (to receive a game), and they misappropriated it for their own use, it constitutes a criminal breach of trust.
• Section 66D of the Information Technology Act, 2000: This section addresses punishment for cheating by personation using a computer resource or a communication device. If the person used a fake identity or misrepresented themselves online to deceive you, this section would be applicable.

If you are the complainant

If you are the one who has been defrauded, you must take the following steps methodically:

• Report on Cyber Crime Portal: Immediately call the National Cyber Crime helpline number 1930 or file a formal complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in). This is the most crucial first step to initiate the process of blocking the funds.
• Inform Your Bank: Contact your bank (in this case, ‘Zenith Bank’) and report the fraudulent transaction. Provide them with the transaction ID and all other details. They will take internal action and communicate with the beneficiary’s bank.
• Report to UPI Provider: Lodge a complaint with the UPI service provider (e.g., ‘QuickPay’) through their app’s grievance redressal mechanism.
• File a Police Complaint: You can file a formal complaint (First Information Report – FIR) at your local police station, which will be forwarded to the Cyber Crime cell. The complaint filed on the national portal often gets routed to the relevant police station as well.
• Consult with Lawyer: The very basic and important step to start is to talk to a Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is an expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved in 7-10 days.

If you are the victim

As a victim, your immediate actions are paramount. Do not delay, thinking the amount is too small. Every report helps in curbing such crimes. Preserve all communication and transaction details meticulously. Do not engage in any further communication with the scammer, as they might try to extract more money or information from you under the pretext of a refund. Your role is to provide all evidence to the authorities and follow up on your complaint.

How the police behave in such cases

The police, particularly the Cyber Crime cells, are now well-versed in handling such complaints. Upon receiving your complaint, their primary step is to use the UPI transaction details to identify the bank account where the money was credited. They will immediately issue a notice to the beneficiary bank to freeze the account. Subsequently, they will obtain the account holder’s details (KYC documents) from the bank. While some local police stations might initially show reluctance for smaller amounts, they are legally bound to register an FIR if the facts disclose a cognizable offense. The investigation involves tracing the digital footprint of the accused, which can be a complex but achievable task.

FAQs people normally have

• Can a UPI transaction be reversed?
  No, UPI transactions are instant and generally irrevocable by the user. Unlike credit card chargebacks, there is no direct reversal mechanism. The only way to get the money back is through the formal legal and banking complaint process, where authorities can freeze the account and facilitate a refund if funds are available.
• What are the chances of getting my money back?
  The chances depend entirely on how quickly you report the fraud. If you report it within the ‘golden hour’ and the funds are still in the scammer’s account, the bank can block them. If the scammer has already withdrawn the cash, recovery becomes much more difficult and depends on the police investigation leading to the arrest and recovery from the accused.
• What if the scammer is in another state?
  This is very common in cybercrimes. The jurisdiction for filing a complaint lies where you suffered the loss (i.e., your location). The Cyber Crime police have procedures to investigate cases that span across different states and will coordinate with the police in the accused’s location.

What evidence is required?

To build a strong case, you must collect and submit the following evidence:

• A clear screenshot of the successful transaction message, showing the UPI Transaction ID (usually a 12-digit number), date, and time.
• Your bank account statement highlighting the debit entry for the fraudulent transaction.
• Screenshots of all conversations with the scammer across any platform (e.g., game chat, social media, messaging apps) where the deal was discussed.
• The scammer’s UPI ID, mobile number, or any other contact details you possess.
• A screenshot showing that the scammer has blocked you is also useful supplementary evidence.

How long will the investigation take?

The duration of an investigation can vary significantly. In a best-case scenario where the funds are traced and frozen quickly, the matter might be resolved within a few weeks. However, if the case involves tracing the individual, multiple bank accounts, or inter-state coordination, it can take several months. Patience and regular follow-up with the investigating officer are key.

Advocate Sudhir Rao, Supreme Court of India