If you’re like most Indians today, digital payments are part of your daily life. Whether it’s sending money via UPI, paying bills on your phone, or swiping your credit card or debit card, the convenience is undeniable. But let’s be honest—there’s always that lingering worry: Is my money safe? How common is fraud in digital payments these days?
This blog is for you—the everyday user. It breaks down the latest fraud statistics in India’s digital payments space in simple terms, shares where this data comes from, and most importantly, how you can stay protected while still enjoying all the perks of going cashless.
How Big Is Digital Payment Fraud in India Now?
According to the latest government and banking data:
- Losses due to digital payment fraud jumped to nearly ₹14,570 crore in the financial year 2023-24. This means scammers stole roughly 1.75 billion US dollars through online fraud in just one year! These include tricks like phishing, fake apps, and SIM swaps.
- UPI fraud cases alone nearly doubled. Reports show over 13 lakh cases in FY24, costing users more than ₹1,000 crore. That’s an 85% rise compared to the previous year.
- High-value scams are on the rise too. Fraud involving transactions over ₹1 lakh jumped four times last year, with total losses reaching nearly ₹177 crore.
Despite all this, the good news is contactless card fraud remains very low in India. New technology and RBI’s strict rules have helped reduce such fraud by over 25% in recent years.
Who Keeps Track of All This Fraud?
You might wonder, how do we know these numbers at all? Who’s keeping an eye on fraud in such a vast market?
- Reserve Bank of India (RBI): The big boss of financial regulations in India, RBI publishes yearly detailed reports on bank fraud, including digital payment scams. They also implement security rules to curb fraud.
- CERT-In: The Indian government’s computer emergency team monitors cyber threats and releases reports on how scammers are evolving their tricks.
- Consulting Firms: PwC, EY, and others analyze payment trends and risks, producing insightful reports that banks and fintech companies use.
- Leading News Outlets: Media like Bloomberg and Economic Times regularly update the public on fraud trends and new government crackdowns.
What Does This Mean for You?
Seeing high fraud numbers can be scary, but remember—most digital payments are safe. The reason fraud seems to be rising is because more people are using digital payments every day. Scammers always target people with the biggest opportunity.
Also, RBI and banks are actively fighting back. For example:
- Transactions above ₹5,000 require strict two-factor authentication (like OTPs or fingerprint scans).
- State-of-the-art encryption and AI are used by banks to detect and block fraudulent activity.
- If you report fraud fast, many banks offer zero-liability, meaning you won’t lose your money.
How You Can Protect Yourself
The best defense is staying informed and cautious. Here are some easy-to-follow tips:
- Never share your OTP, UPI PIN, or card CVV with anyone, no matter who they claim to be.
- Only use official bank or payment apps downloaded from trusted sources.
- Set daily transaction limits via your banking app, especially for UPI and cards.
- Turn on SMS or app notifications for every transaction to spot unauthorized activity early.
- Be suspicious of unsolicited calls or messages asking for your financial info.
- Check your statements regularly and report suspicious transactions immediately.
Final Thoughts
Digital payments are transforming India’s economy and making life effortless for millions. Yes, fraud cases have risen—and will continue to evolve—but thanks to regulators, banks, and tech advances, your money is safer than ever.
Being careful, following simple safety steps, and staying updated from trusted sources can help you enjoy all the benefits of digital payments worry-free. Because convenience and security should go hand in hand.
