As Indian businesses grow their international revenue, they become targets for payment-related scams. These scams exploit the complexity of cross-border payments, trust in established brand names, and the urgency that international business relationships create. This guide covers the most common scams and exactly how to protect your business.
Scam Type 1: The Overpayment Scam
How it works:
A "client" sends you a payment significantly above your invoice amount and asks you to wire back the difference. "I accidentally sent $10,000 instead of $2,000 — please send back $8,000." The original payment is fraudulent (fake check, reversed ACH, or stolen card) and will fail. The $8,000 you send back is real money lost.
Red flags:
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Payment significantly exceeds the invoice amount
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Urgent request to wire back the difference immediately
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Payment arrives before you've started work or before delivering any service
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Payer is a new contact with no prior relationship Protection:
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Wait for international wire to fully clear (3-5 business days confirmed) before wiring any funds back
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For genuine overpayments from known clients: credit against future invoice, don't wire back
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For card overpayments: issue a refund through your payment platform directly (never via wire back to a different account)
Scam Type 2: Business Email Compromise (BEC) on VBA Details
How it works:
A fraudster intercepts your email communication with a client (via email compromise or phishing) and substitutes your legitimate VBA bank details with their own fraudulent account details. Client wires to the fraudster's account, not yours.
Red flags:
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Client reports sending payment but you haven't received
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Client received an email "from you" with different bank details
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Urgency to update bank details for an upcoming payment Protection:
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Use a permanent, consistent VBA (not one that changes per invoice)
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Never send VBA details via email alone for large transfers — confirm verbally with client before first payment
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If a client says bank details in your email don't match your verbal confirmation, investigate immediately
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Enable email security: SPF, DKIM, DMARC on your business email domain to prevent spoofing
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Send bank details via your official email only, not WhatsApp or third-party messaging for first-time clients
Scam Type 3: Fake Buyer / Non-Existent Client Scam
How it works:
A fraudster poses as a legitimate international company interested in your services. They place a large "order" and may even make initial payments (from stolen payment methods). The goal is to get you to deliver work or send goods before the payment fails. Or they establish trust, then ask for funds transfer "related to the project."
Red flags:
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New client with unusually large first order
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Aggressive timeline pressure — must start immediately
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No verifiable company website, LinkedIn presence, or Google footprint
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Payment arrives from an unexpected third party (not the company itself)
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Requests for wire transfers to personal accounts rather than corporate accounts Protection:
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For large new clients: verify independently. Google the company. Check LinkedIn. Call the main company number from their website (not a number they give you).
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Require advance payment from new clients before starting work
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For digital services: deliver non-commercial samples or phase 1 only after advance is confirmed
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Wire payments from corporate bank accounts to corporate bank accounts only. Personal account wires are red flags.
Scam Type 4: Fake SWIFT Confirmation / Bank Impersonation
How it works:
Scammer sends a fake SWIFT MT103 (wire confirmation) or a PDF that looks like a bank transfer receipt, claiming payment has been sent. Pressure to deliver goods/services before the "payment clears." The payment never arrives because no real wire was sent.
Red flags:
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Client sends PDF "proof of payment" but bank shows no credit
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Client is very insistent that you should see it "any moment"
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PDF has formatting inconsistencies or unusual banks Protection:
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Only trust payment when it shows in YOUR Playto Pay dashboard or YOUR Indian bank account
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Do not release work, licenses, or access based on screenshots or PDFs
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If client claims wire was sent 3+ business days ago: ask for their bank's SWIFT reference number and trace with your platform's support
Scam Type 5: Phishing for Payment Platform Credentials
How it works:
Scammer sends fake email impersonating Playto Pay, Razorpay, Skydo, or your bank: "Verify your account" or "Unusual activity detected." Clicking the link takes you to a fake login page that steals your credentials.
Red flags:
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Email from a suspicious domain (playto-pay.com, razorpay-india.com)
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Urgency: "Your account will be suspended in 24 hours"
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Generic greeting ("Dear Merchant" not your name) Protection:
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Always go directly to the payment platform's URL (type it, don't click email links)
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Enable two-factor authentication (2FA) on all payment platform accounts
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Verify domain: legitimate Playto Pay emails come from @playto.so, not similar-looking domains
Scam Type 6: Upfront Fee Fraud (Advance Fee)
How it works:
Fraudster offers a large contract but requires an upfront "processing fee," "compliance bond," "escrow fee," or "government tax" before they can release payment to you. You pay; no contract materializes and the fraudster disappears.
Red flags:
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No legitimate business relationship requires you to pay fees to RECEIVE money
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Request for payment before the contract starts
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"Government" or "compliance" fees that are not part of any real regulatory framework Protection:
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Never pay to receive a payment. Legitimate payment processing fees are deducted from your settlement, never pre-paid by you.
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If anyone asks you to pay money to access your own funds: it's a scam.
General Fraud Prevention Practices
- Use daily-settling platforms. Playto Pay's daily settlement means no large balance accumulates. Less exposure than platforms where funds sit for days.
- Keep VBA details consistent. Same VBA for all clients. Changes to bank details should be communicated via verified channel + verbal confirmation.
- Separate your business and personal accounts. Fraudsters targeting personal accounts can't reach business payment platforms.
- Monitor transactions in real-time. Playto Pay dashboard shows transactions as they happen. Set up notifications for every settlement.
- Trust your instincts. If something feels wrong about a "client" or a payment, investigate before acting.
FAQ
What is the most common payment scam targeting Indian businesses? Business Email Compromise (BEC) intercepting VBA bank details is growing. Overpayment scam is most common for small businesses. Fake client / fake SWIFT for service businesses.
How do I verify a payment has actually arrived? Check YOUR Playto Pay dashboard or YOUR Indian bank account. PDFs, screenshots, and MT103 confirmations from the client are not verification. Only the credit to your account is verification.
If a new client wants to pay me more than my invoice, what should I do? This is the overpayment scam. Do not wire back the difference. Issue a corrected invoice or credit the overpayment against future work. Wait for full settlement before any refund.
How do I protect my Playto Pay account from phishing? Enable 2FA. Only access Playto Pay at playto.so (typed, not from email links). Legitimate emails come from @playto.so domain. Never share login credentials.