The Delhi Police have arrested a 19-year-old youth for allegedly tampering with merchant QR codes to divert digital payments into his personal bank account, cheating both customers and shop owners

How the fraud came to light

The case surfaced on December 13 after a customer lodged a complaint stating that a digital payment made at a reputed garment store did not reach the merchant. The customer had purchased a lehenga priced at ₹2.50 lakh and made two UPI payments of ₹90,000 and ₹50,000 by scanning QR codes displayed at the shop.

Despite showing payment confirmation screenshots, the shop owner informed the customer that the amount had not been credited to the store’s official bank account, raising suspicion of foul play.

Cyber police probe and arrest

Following the complaint, an e-FIR was registered at the Cyber Police Station, North District, under relevant sections of the Bharatiya Nyaya Sanhita dealing with cheating and criminal conspiracy. Police examined the shop’s billing system, transaction logs, and digital payment infrastructure to trace the discrepancy.

An analysis of the UPI transaction trail revealed that the payments were diverted to a bank account not linked to the store. Further scrutiny showed that the account was being operated from Rajasthan. Acting on this lead, police conducted an inter-state operation and traced the account holder to Jaipur district.

The accused, identified as Manish Verma (19), a resident of Chaksu in Jaipur district, was apprehended and brought to Delhi for questioning.

Modus operandi revealed

Police said the accused admitted to digitally editing genuine merchant QR codes by replacing the merchant’s bank account details with his own, while keeping the QR code visually similar to the original. These altered QR codes were then used at shops, leading unsuspecting customers to unknowingly transfer money into his account.

Mobile phones seized from the accused reportedly contained over 100 edited and original QR codes, along with chat messages, screenshots, and financial records, suggesting the scam may have been carried out at multiple establishments.

Further investigation underway

Investigators believe the recoveries indicate that similar methods may have been used elsewhere. Efforts are ongoing to identify additional victims and trace other fraudulent transactions linked to the accused.

Police have advised merchants to regularly verify their QR codes and customers to double-check the beneficiary name before completing high-value UPI payments.