A Study of Security Challenges, Fraud Prevention, Authentication and Risk Management in Unified Payments Interface

Abstract

Unified Payments Interface (UPI) has become a major component of India’s digital-payment ecosystem by enabling fast, interoperable account-to-account payments through mobile applications. The growth of UPI has increased convenience, but it has also created a wider attack surface for phishing, social engineering, QR-code fraud, fake applications, malware, SIM-related attacks, fraudulent payment requests and account takeover. This paper studies UPI security by reviewing authentication mechanisms, device security, application security, transaction monitoring, fraud detection, customer awareness and regulatory controls. The methodology combines secondary literature with an analytical threat-and-control assessment. The results indicate that user-centric attacks form an important part of the identified threat landscape and that no single security mechanism can address every risk. A layered model combining authentication, secure devices, secure applications, transaction controls, fraud monitoring, awareness and incident response is therefore recommended. Emerging on-device biometric authentication provides an additional option for eligible UPI transactions, while RBI and NPCI controls continue to strengthen digital-payment security