- Digital payment fraud in India surged to 14.57 billion rupees ($175 million) in fiscal year 2024.
- UPI transactions grew 137% in the past two years, reaching 200 trillion rupees.
- RBI is raising awareness through campaigns to combat increasing fraud risks.
India has seen a significant rise in digital payment fraud, reaching 14.57 billion rupees ($175 million) in the fiscal year ending March 2024, according to a Reserve Bank of India (RBI) report. This increase aligns with the rapid growth of the Unified Payments Interface (UPI), which saw a 137% surge in transactions over the past two years, totaling 200 trillion rupees.
The popularity of digital payments, driven by affordable internet access and greater financial inclusion, has also made it a target for fraudsters. Nikhil Jois from fraud detection platform Bureau noted that the rise in digital transactions, combined with low financial literacy and improper technology use, has made users more vulnerable to sophisticated fraud tactics.
In response, the RBI has launched awareness campaigns featuring celebrities like Amitabh Bachchan to educate the public about the risks of online fraud. Despite these efforts, digital payment frauds accounted for 10.4% of the total fraud amount in fiscal year 2024, up from 1.1% the previous year, underscoring the need for better security measures and increased user awareness.
