Early Times Report
Jammu, Mar 24: In a shocking revelation that exposes the dark underbelly of India’s digital payment boom, nearly 79 lakh fraud cases involving a staggering Rs. 4,109 crore have been reported over the past five years, raising serious concerns about the safety of online transactions.
Admitting to the alarming surge, Minister of State for Finance Pankaj Chaudhary said that the rapid expansion of digital payments, particularly through the Unified Payments Interface, has been accompanied by a sharp rise in fraudulent activities.
Citing data from the Reserve Bank of India, the Minister revealed that 79.05 lakh frauds were recorded in the last five financial years alone, exposing millions of users to financial losses.
The disclosure came in response to queries regarding the increasing number of fraud cases on UPI platforms since 2022, highlighting the growing vulnerability of users in an increasingly cashless economy.
Officials acknowledged that as digital transactions surge, cybercriminals are becoming more sophisticated, exploiting loopholes and targeting unsuspecting users through scams, phishing, and unauthorized access.
Attempting to reassure the public, the government said multiple safeguards have been put in place by authorities, including the National Payments Corporation of India. These measures include device binding with registered mobile numbers, two-factor authentication via PIN, daily transaction limits, and restricted usage protocols.
Additionally, NPCI has deployed advanced fraud detection systems powered by AI and machine learning, enabling banks to generate real-time alerts, block suspicious transactions, and coordinate with agencies like the I4C under the Ministry of Home Affairs to track and act against fraudulent accounts.
Despite these efforts, the scale of fraud has triggered alarm bells, with experts warning that awareness among users remains critically low. Authorities, including RBI and banks, have intensified campaigns through SMS alerts, radio broadcasts, and public outreach programmes to educate citizens on cyber safety.
Significantly, the RBI has also revisited its earlier guidelines on customer liability in unauthorized electronic transactions. Originally issued in 2017, these norms are now under review in light of rapid technological advancements. On March 6, 2026, the central bank released revised draft guidelines, including provisions for compensation in small-value fraud cases, inviting feedback from stakeholders.
The massive figures underscore a growing challenge for India’s digital economy—balancing convenience with security—as millions continue to embrace cashless transactions amid rising cyber threats. |
