Scam alert: Beware of fake deals and scammers on OLX and social media -- Paytm Payments Bank blog: how three-way payments work in India

In recent years, scammers have successfully defrauded customers by listing items on websites such as OLX, Quikr, Telegram, etc. at attractive prices or asking for payment instead of paying for the purchase. How does the scam work? Usually scams are carried out in two ways:

Fraudsters playing the role of sellers - Fraudsters initially register as sellers and win the trust of buyers by assuming identities related to trustworthy professions such as armed forces personnel, CISF, etc. and posting fake or stolen identity cards and documents. In such cases, the fraudsters share the Aadhaar and other identifying details of the person they are impersonating and ask for an advance payment for the listed goods. On some platforms like Telegram, Facebook, Instagram, etc., fraudsters deceive buyers by posting attractive prices for branded goods, claiming that they are the result of a customs auction or some other fake reason. Sometimes they also share fake receipts from courier companies indicating that the products have been shipped. Buyers are often convinced by these documents and lured by the prices and in turn make advance payments to the fraudsters through IMPS, UPI, wallet or linked payments.

Scammers play the buyer - in this case they target the seller by telling them that they have made a purchase request and once the seller approves it, they deposit the money into the seller's account. These requests are simply UPI collection requests. In this case, the seller mistakenly believes they have received payment and approves the collection request, resulting in a debit to the account.

What can you do to protect yourself? Be wary of fake offers, products or services. If a deal looks too good to be true, it often isn't. Don't be tempted by an iPhone for Rs 5,000 or a bike for Rs 15,000. Transfer payment to the seller only after the item is delivered to you. Platforms like OLX, Quikr have their recommended payment methods and they act as intermediaries between buyers and sellers. Don't approve unsolicited collection requests.UPI collection requests are used by others to collect money from you and approving them will result in you paying them.