Tarun Karthick
Sri Vijaya Puram, 05 June 2025
In a significant crackdown on cyber fraud, the Andaman and Nicobar Police have busted a racket involved in duping merchants using a fake version of the popular digital payment app, PhonePe. According to a social media post issued by the Police Department, seven individuals have been arrested in connection with the case. The police have urged citizens to remain vigilant and avoid relying on payment screenshots as proof of transaction.
The brief advisory, posted across official social media platforms, stated: “Andaman & Nicobar Police bust digital payment fraud racket! 7 arrested for scamming using fake PhonePe app. Citizens, be cautious! Verify transactions independently via mobile banking apps or official notifications. Don’t rely on screenshots!” However, further details regarding the case remain unavailable at this time, as the official website of the Andaman & Nicobar Police is currently down, preventing access to the FIR and additional case information.
While this incident has shocked the local business community, such scams are not new and have been reported in various parts of the country over the past few years. Typically, the scam involves the use of a fake app that mimics the interface of genuine UPI-based payment applications like PhonePe. These counterfeit apps generate realistic-looking payment success screens — including transaction IDs and green ticks — even though no actual money is transferred. The fraudsters often present these fake confirmations to unsuspecting merchants, who accept them as valid proof of payment.
The scam is particularly effective in busy retail environments where merchants may not have the time or tools to cross-verify payments. Many victims rely on screenshots or visual confirmation from the customer’s device rather than checking their own banking or UPI apps. In most cases, the fraud is only discovered minutes or hours later when the expected payment fails to appear in the merchant’s account.
To protect themselves, merchants are being advised by the police and cybersecurity experts to verify all digital payments directly through their own bank’s mobile app or UPI platform. Relying solely on screenshots or the customer’s word can be risky, especially in areas with high customer traffic. Shopkeepers should also enable instant SMS or email alerts for transactions, and, where feasible, install certified sound-box devices that announce receipt of payments only after the transaction is successfully completed.
The Andaman and Nicobar Police have not yet released the identities of those arrested or the extent of the financial damage caused.