Online Payment Frauds Jump Over 400 Percent in India, RBI Data Shows
Shocking revelations from RBI data indicate a staggering surge in online payment frauds in India, with a jump of over 400 percent. Join us as we delve into the details of this concerning trend, exploring the reasons behind the sharp increase and its implications for consumers and businesses alike. Stay informed with this comprehensive analysis of the online payment fraud crisis in India, based on the latest data from the Reserve Bank of India.
Online Payment Frauds Surge Over 400 Percent in India, Reveals RBI Data
Digital payment frauds in India surged by more than fivefold to 14.57 billion rupees ($175 million) in the fiscal year ending March 2024 compared to the previous period, as per the Reserve Bank of India's annual report released on Thursday.
This sharp increase coincides with India's transformation into a digital payments hub following the introduction of the Unified Payments Interface (UPI) in 2016, enabling users to instantly transfer money using their mobile phones. RBI data reveals that the value of transactions on UPI soared by 137% over the past two years, reaching 200 trillion rupees. The combination of affordable internet access and enhanced financial inclusion has further fueled the adoption of digital payments nationwide.
However, the rising popularity of digital payments has also created a larger target for fraudsters, noted Nikhil Jois, head of growth at the fraud detection platform Bureau. "With a lack of financial literacy and imprudent technology usage, a significant portion of the population is vulnerable to such attacks," he remarked. "Fraudsters are becoming increasingly sophisticated, while financial institutions and fintech companies, competing for market share and expansion, have relaxed their controls."
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