Looking at a broader timeline, from 2022-23 to the present, over 27 lakh fraud cases have been recorded, leading to a cumulative loss of Rs 2,145 crore. In the financial year 2023-24 alone, more than 13 lakh people fell victim to such frauds, incurring losses of Rs 1,087 crore. A Digital Crime (DC) report attributes this alarming increase to the growing number of UPI users and the surge in real-time payment transactions.

In response, the Finance Ministry emphasized the need for India to balance the promotion of fintech innovation with strict regulatory compliance to curb fraud. As one of the world’s largest and fastest-growing fintech markets, India aims to maintain its momentum in advancing financial inclusion while addressing vulnerabilities in the system.

Highlighting an 85% increase in UPI fraud cases this financial year, the Ministry stressed the importance of financial literacy for all age groups. It also called for enhanced regulatory measures to counter emerging threats like data breaches and financial scams, ensuring robust safeguards against these challenges.

How to avoid online fraud?

You always need to be vigilant to avoid online fraud. You should always keep the password of your digital account unique so that no one can easily access your account. Along with this, you should also keep two-factor authentication active. With this, you should never tell your personal and financial information to anyone. You should always keep an eye on your account, any suspicious payment you must report to the service provider.

Avoid fraud in these ways

• You should always make sure that your device and payment are up to date.
• You should only use trusted apps. You should not download any suspicious apps. That’s why you should download only such apps which have a good track record of security.
• You should always be on the lookout for scams. You must know what kind of scams are happening in the market. If you stay updated, then you can save yourself from many frauds.
• You must check the payment amount and receipt details before making any payment. In such a situation, you are saved from sending money to the wrong address.
• You should avoid using public Wi-Fi. Many frauds are committed by using public Wi-Fi. You should always use a Virtual Private Network to avoid hackers.
• You should beware of fraud trades. The National Payments Corporation of India (NPCI) keeps on reporting such frauds. In today’s time, more frauds are done through social engineering techniques.