Stolen phones being used to siphon off money via UPI, cops alert shopkeepers

The cybercrime wing of the Ludhiana police has issued a critical advisory for shopkeepers and small business owners, asking them to exercise extreme caution while accepting payments via Unified Payments Interface (UPI) or other digital money transfer applications, especially from unknown persons. The warning has come amidst a rising trend wherein criminals have been using stolen or looted mobile phones to siphon off funds, with unsuspecting merchants becoming unwitting conduits in the fraud chain.

It was learnt that police investigations uncovered a sophisticated new modus operandi, wherein miscreants, after gaining access to a victim’s financial applications on a stolen device, transfer money in small amounts to third-party accounts, often those belonging to vendors and shopkeepers. By making a purchase or simply requesting a return for a non-existent transaction, the criminals ‘launder’ the illicit funds.

Recently a jeweller in Jagraon, unaware of the identity of two clients, received an online payment from a stolen phone and a few days after receiving the payment, two bank accounts in which the payments were received were frozen. On inquiring the reason behind the action, the jeweller was shocked to find out that the cybercrime wing of Tarn Taran police had blocked the account on the basis of a complaint of a man, whose mobile phone was stolen and money was transferred to buy ornaments.

“We have investigated cases where shopkeepers, who unknowingly received money from a stolen phone, have had their bank accounts subsequently blocked during the course of our investigation. This action is necessary to trace and recover the stolen funds, but it causes significant distress and disruption for legitimate business owners.” stated cyber police station incharge Inspector Satbir Singh.

Inspector Satbir also confirmed that they were actively tracking money trails and had already frozen numerous bank accounts that were found to be the recipients of transactions made from compromised mobile phones. This aggressive measure aims to break the chain of digital crime and deter those who might be receiving stolen funds, even if they are not directly involved in the theft. “Even accounts of some shopkeepers, who gave cash in lieu of online money transfers, have been frozen during the investigation,” said Satbir.

To combat the spread of this new modus operandi, the police department has launched an extensive public awareness campaign across various social media platforms of the Ludhiana Police Commissionerate. The campaign emphasises the danger of accepting payments, particularly returns or unusual sums, from customers who cannot provide a clear, verifiable reason for the transaction or who seem rushed, said Ludhiana Commissioner of Police Swapan Sharma.