SBI Issues UPI Fraud Warning Over Fake Refund Requests and Unexpected Deposits

State Bank of India has warned customers about UPI fraud in which unexpected deposits are used to trigger large payments.

The warning, issued on October 10, 2026, as part of SBI’s National Cyber Security Month Special Campaign 6.0, concerns a method known as the “jumped deposit scam”. Fraudsters use claims of accidental bank transfers to persuade account holders to authorise payments through the Unified Payments Interface (UPI).

The bank has advised customers to independently verify unexpected credits and avoid approving unfamiliar payment requests, particularly when callers demand immediate action.

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How Does the Jumped Deposit Scam Work?

The fraud typically begins when an individual receives an unexpected credit or is contacted by someone claiming to have transferred money into their account by mistake.

The caller requests an immediate refund, presenting the situation as an innocent banking error. Fraudsters may create urgency or apply emotional pressure to prevent the account holder from checking the transaction details.

The central deception involves persuading the victim to approve a UPI payment request for a substantially higher amount. Once the victim authorises the transaction, the money is transferred to the fraudster’s account.

The initial claim of an accidental deposit is therefore used to establish trust before the victim is directed towards a separate payment authorisation.

Why Has SBI Warned Customers?

SBI has cautioned that fraudsters may exploit an individual’s willingness to return money received by mistake.

The bank’s October 10 advisory urged customers to remain vigilant when unknown individuals claim to have made accidental transfers and request refunds. According to the warning, emotional manipulation and demands for immediate payment are important indicators of possible fraud. Customers who act without independently checking their accounts may inadvertently authorise transactions they did not intend to make.

The advisory particularly emphasises the risks associated with unfamiliar UPI payment requests and instructions received from unknown callers.

What Precautions Should Account Holders Take?

SBI has advised customers to verify unexpected deposits through their bank’s official channels rather than immediately transferring money to someone claiming to be the sender. Customers should avoid approving unfamiliar UPI requests and independently confirm transaction details before making payments.

The bank has also recommended blocking suspicious phone numbers, avoiding unnecessary communication with unknown callers and promptly reporting suspected fraud to their banking institutions.

The advisory additionally refers to calls carrying the 1600 prefix as genuine banking communications. However, customers have been urged to verify the caller’s identity and the purpose of any request before disclosing information or authorising transactions.

What Should Customers Remember Before Returning Money?

• An unexpected bank credit does not establish that a caller requesting repayment is genuine.
• Account holders should distinguish between verifying an incoming transaction and authorising a separate outgoing payment.
• SBI’s warning highlights the importance of remaining cautious when a stranger demands an immediate refund, particularly when the request involves a UPI authorisation.
• Customers should contact their bank through official channels if a transaction appears suspicious.

The central precaution is to avoid allowing urgency, persuasion or emotional pressure to replace independent verification before approving any digital payment.