Cyber fraudsters in Varanasi are increasingly targeting traders, shopkeepers and business owners by posing as authorised agents of digital payment service providers, replacing SIM cards in payment machines and then using the victims’ banking access to secure loans and siphon off money.
A New Pattern of Fraud Targets Payment Systems
Cyber criminals have been active in the city for the past 45 days and have already targeted more than 15 people, cheating them of lakhs of rupees. Traders, shopkeepers and larger business operators are said to be among the main targets. The fraudsters first obtain transaction details and identify suitable targets before approaching shops, malls or business establishments while posing as authorised agents for online payment applications.
They allegedly offer to update or newly install QR code machines and, under that pretext, replace the SIM card fitted inside the payment device’s box. Soon afterward, they are said to take loans from private companies in the victims’ names and withdraw large sums from linked bank accounts. Around 15 such cases have been registered so far at the cyber cell and different police stations, with some of them linked to KYC related fraud.
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Multiple Cases Reveal Similar Methods
In some cases, the fraudsters are described as introducing themselves as employees of Paytm, PhonePe or a bank and telling shopkeepers that a machine or QR code must be updated. After gaining trust, they allegedly take the mobile phone or machine into their hands and ask for a PIN or OTP in the name of a demo transaction. The money is then transferred from the account to other accounts.
One case involves shopkeeper Kashinath Keshari of the Shivpur police station area. Two men reportedly visited him in March, identified themselves as authorised employees of a private company and said the payment machine had to be changed. In the name of updating the machine, they allegedly changed the box SIM and later used it to obtain a loan of Rs 5.75 lakh. A police case was subsequently registered.
Another case concerns a shop in Golgadda, where two cyber fraudsters allegedly arrived and insisted that the payment machine needed an update. When the shopkeeper resisted, they reportedly warned that all payments would be stopped and claimed that the company had made the update mandatory. After replacing the box, they left, and it was later discovered that a loan of Rs 3 lakh had been taken from the shopkeeper’s bank account.
Police Issue Advisory After Rise in Cases
A third case concerns shopkeeper Ashish Singh of Maruti Nagar Colony, who was allegedly cheated on March 14. A युवक posing as a Paytm employee reportedly took his mobile phone on the pretext of updating the barcode, removed the SIM, inserted another SIM and left. Later, according to the screenshots, the accused used Ashish’s documents to obtain a loan of about Rs 3 lakh.
A public advisory is issued urging people not to hand over their payment machines or mobile phones to unknown persons, to verify the identity card of anyone claiming to represent a company, and never to share OTPs, PINs or passwords. It also advises direct contact with a company’s official customer care for any machine or QR code update, warns against allowing anyone to change a SIM or handle the machine, and says any suspicious activity in a bank account should be reported immediately to the bank and the cyber helpline on 1930. The warning says no company sends agents to replace or update machines without official prior intimation.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
