Business News Desk – There has been an increase of 85 percent in UPI fraud cases in the financial year 2024. The number of fraud cases was 7.25 lakh in FY 2023, which increased to 13.42 lakh in FY 2024. While the common people were defrauded to the tune of Rs 573 crore in 2023, the total figure increased to Rs 1,087 crore in 2024. The Finance Ministry has given these shocking figures in its reply given in Parliament. This revelation clearly highlights the growing challenges in securing the country’s rapidly growing digital payments ecosystem. This data shows the scale of the fraud problem, with 6.32 lakh UPI fraud incidents already reported in FY 24-25. This includes an amount of Rs 485 crore.
Within a few months this figure is almost half of last year’s figure. UPI has been used effectively in the country. The total UPI transactions in the country have increased by 57 percent year-on-year. UPI transactions are expected to increase from Rs 8,371 crore in FY 2023 to Rs 13,113 crore in FY 2024. For the current FY 24-25, 8,566 crore transactions have already been recorded, showing the increasing usage of the platform even as fraud cases continue to rise.
What did the Finance Ministry say
In response to the increase in fraud, the ministry has unveiled a number of measures aimed at improving security and reducing vulnerabilities in the digital payments ecosystem. The Reserve Bank of India (RBI) has implemented a Central Payment Fraud Information Registry (CPFIR), a system designed to track and report payment fraud using advanced AI and machine learning models. Security has also been strengthened with device binding, PIN-based 2 factor authentication and daily transaction limits to prevent unauthorized activity.
The government is focused on encouraging the general public to report cyber fraud. It has launched the National Cyber Crime Reporting Portal (cybercrime.gov.in) and helpline number 1930 for users to flag suspicious activity. Initiatives are being taken to increase awareness among the general public by educating people about preventing cyber crimes. Campaigns are being run through SMS, radio and public advisories to make people aware about the fraud.
Additionally, DoT has launched ‘Chakshu’ facility on Sanchar Sathi portal, allowing users to self-report fraudulent communications. The initiative includes calls, SMS and WhatsApp messages designed to defraud users, which the general public can self-report. With the expansion of UPI in India, the ministry assured the country’s Parliament that the initiative will It’s part of a larger effort to secure payments and build public confidence in the system. The increase in UPI fraud cases is a matter of concern. The ministry stressed that proactive measures and public awareness campaigns are necessary to ensure safe use of the fast-growing payments platform.
