Since 2022-23, UPI-related frauds have accounted for a cumulative loss of ~Rs 2,100 crore across 2.7 million reported incidents.
- Rise in UPI-related frauds coincides with growth in number of UPI users and total transactions.
Types of UPI Frauds
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Rising Status of digital/UPI transaction and financial frauds
- In FY24, UPI processed 131.12 billion transactions with a total value of Rs 200 trillion. Currently, UPI is used by over 400 million unique users for real-time payments.
- Rise of financial frauds by 166% in 2023-24 compared to 2022-23, as per RBI annual report.
Challenges of digital transactions
- Cyber-security: Digital financial frauds accounted for a staggering ₹1.25 lakh crore over last three years as per Indian Cybercrime Coordination Centre.
- Third party risks: This can be risk from Dominant Internet platforms or Digital banking solution providers.
- Digital Illiteracy: 37.1% of urban population is able to use internet as compared to only 13% in rural areas.
- Other Challenges: Limited digital infrastructure. Interoperability issues etc.
Initiatives for Preventing Cyber Frauds
- Indian Cybercrime Coordination Centre (I4C): Under MHA, to combat cybercrime
- CERT-In: national nodal agency for responding to computer security incidents.
- PMGDISHA: To usher in digital literacy in rural India.
- Cyber Swachhta Kendra: To create a secure cyber space by detecting botnet infections.
