Small business owners duped within 10 seconds in Katni:Fake PhonePe displays ‘Payment Successful’ without actual payment

In Madhya Pradesh’s Katni district, cyber fraudsters have developed a method that works even without internet connectivity. Using cloned UPI apps, they are emptying traders’ pockets within just 10 seconds. The difference between real and fake is so minimal that even experienced traders are being deceived. A Bhaskar investigation into a fake payment app (PhonePe clone) has revealed alarming facts for digital payment users. A similar pattern of fraud has been found in Barwara and Dheemarkheda areas of the district. Case 1: Took ₹200 citing lack of cash Babita Singh Raghuvanshi from Barwara runs a small shop named ‘Kapil Online’. A young man approached her claiming he was in distress. He said he had no money to return home and could not withdraw cash as the bank server was down. Out of goodwill, Babita decided to give him ₹200. The young man scanned her QR code. Her name flashed on the mobile screen, followed by a familiar “tin-tin” sound and a ‘Payment Successful’ message. However, when Babita checked her bank statement in the evening, the ₹200 transaction was not recorded. It was not just about ₹200, but about the trust a rural trader places in the digital system. Case 2: Fake receipt shown on mobile Street vendor Kamal Kartikeya, who runs a cart near Vishram Baba Gate in Katni city, has also fallen victim. He said the same incident happened twice within a week. He earns around ₹1,000–1,200 a day through hard work. Later in the evening, he found that ₹600 from two customers had not been credited to his account. Kamal said the customers showed a receipt on their mobile with his name and ₹300 written on it. He believed the payment was done, unaware that even the screen could be fake. Know how this fake payment system works Fake App Being Spread Through Dark Web and Telegram Groups Fake app spread via dark web and Telegram With the help of an expert and a local source, Bhaskar analysed the APK file of the app. The findings were shocking. This is not a simple application. It is being circulated through the dark web and Telegram groups. Its interface is 99% similar to the real PhonePe app, including fonts, colours, animations and even the ‘blue tick’. The most dangerous aspect is that it works offline. While genuine apps require server connectivity for payments, this fake app acts only as an “animation generator”. By entering any name or amount, it instantly displays a ‘successful payment’ message. Fraudsters use it in areas with weak network to escape quickly using connectivity as an excuse. When the QR code is scanned, the app uses camera and OCR technology to read the name. As soon as an amount like ₹500 is entered, the screen shows “Paid to [Merchant Name] ₹500”, making the shopkeeper believe the payment is complete. Downloaded not from Play Store but from illegal websites This case has posed a new challenge for Katni police. Social worker Indra Mishra has lodged a complaint demanding a ban on such APK files, as they are downloaded from illegal websites and not from the Google Play Store. He has also urged police to block such links and investigate these cases as serial fraud by linking smaller incidents. According to cyber experts, creating or using such apps is a punishable offence under Section 66D of the IT Act and provisions of the Bharatiya Nyaya Sanhita, with up to three years of imprisonment and a fine. No written FIR has been registered so far Katni cyber in-charge Anoop Singh said no written FIR has been registered so far. He added that authorities are aware of such apps in the market and are conducting a technical investigation. He advised traders not to panic but to remain cautious. Discussion about it among college students and drug addicts too The investigation also revealed a social dimension. Earlier, cybercrime was linked to organised gangs like those in Jamtara, but now this technology has reached common people, especially youth. Locals said the app is being discussed among college students and drug users. Even ordinary individuals are using it to commit small-scale frauds of ₹100–₹200. 5 Tips from Cyber Experts to Avoid Such Fraud