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Business Standard
26-06-2025
- Business
- Business Standard
1 in 5 UPI users faced fraud; 51% victims didn't report, reveals survey
One in five families with a Unified Payments Interface (UPI) user has experienced fraud at least once in the past three years, according to a new survey conducted by LocalCircles. The findings come as UPI transactions have soared, with 185.8 billion transactions recorded in FY2024–25 — a 41.7 per cent increase from the previous year, accounting for 83.4 per cent of the total digital payment volume in the country. The survey, which gathered over 32,000 responses from UPI users across 365 districts, found that fraudsters are exploiting the rapid adoption of UPI through a variety of tactics. Of those who reported experiencing fraud: Many victims experienced more than one type of fraud, underscoring the sophisticated and evolving methods used by cybercriminals. Underreporting of fraud incidents A particularly concerning finding is that 51 per cent of those who experienced UPI fraud did not file any official complaint, whether with the police, their bank, the UPI platform, or regulatory bodies such as the National Payments Corporation of India (NPCI) or the Reserve Bank of India (RBI). This significant underreporting suggests that the true scale of UPI-related fraud is likely much higher than official statistics indicate. Regulatory and technological response The RBI's Annual Report for FY2024–25 noted a sharp rise in digital payment frauds, with 13,516 cases accounting for 56.5 per cent of all reported banking frauds and losses totalling Rs 520 crore. While not all these cases are UPI-specific, the inclusion of UPI in these figures reflects its vulnerability as a target for fraudsters. To combat these threats, several measures have been implemented: - The RBI has set up the Central Payment Fraud Information Registry (CPFIR), which uses artificial intelligence and machine learning to track and report payment frauds. - Security features such as device binding, PIN-based two-factor authentication, and daily transaction limits have been introduced. The daily UPI transaction limit is Rs 1 lakh, with higher limits for specific transaction types. - The government has launched the National Cybercrime Reporting Portal and helpline 1930 for reporting suspicious activities. - The RBI is developing a Digital Payments Intelligence Platform, leveraging advanced technologies for real-time fraud detection and mitigation. A committee led by former NPCI MD and CEO AP Hota is overseeing this initiative. - In December 2024, the RBI introduced an AI-ML-based tool to identify mule accounts used for illegal activities, piloted successfully in two public sector banks. - Exclusive internet domains (. and . are being rolled out to combat phishing and enhance trust in digital banking. Public awareness, need for simplified reporting Despite these measures, user feedback from the survey indicates a pressing need for easier, single-click fraud complaint reporting that is both responsive and effective. Many users expressed frustration with the complexity and inefficiency of current reporting mechanisms. The study recommends that all stakeholders—including the government, RBI, NPCI, banks, and payment platforms — work towards a streamlined, user-friendly system for fraud reporting, with timely response and resolution.
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Business Standard
22-06-2025
- Business
- Business Standard
RBI, banks to launch DPIP platform to combat rising digital payment frauds
In a bid to rein in the increasing incidence of digital payment frauds, major public and private sector banks have been roped to develop Digital Payment Intelligence Platform (DPIP) as a Digital Public Infrastructure (DPI) under the supervision and guidance of the RBI. The proposed platform seeks to bolster fraud risk management by facilitating real-time intelligence sharing and gathering, thereby preventing fraudulent digital transactions, sources said. According to sources, the institutional structure of the proposed entity would be created with the help of both public sector and private sector lenders as fraud is a common monster. Earlier this month, a high-level meeting in this regard was convened to finalise the structure of the platform where senior bank officials, RBI officials and other stakeholders were present. Since the issue is one of the top agenda for both the government and the Reserve Bank of India (RBI), sources said the platform should become operational in the next few months. Once operational, DPIP will collect and analyse data from various sources to identify potential threats and prevent fraudulent activities. By enabling real-time data sharing, the platform will help prevent scams and ensure secure transactions. Reserve Bank Innovation Hub (RBIH) has been assigned for building a prototype of DPIP in consultation with 5-10 banks. It is going to leverage advanced technologies to curb payment-related frauds. RBI, in June last year, formed a committee, chaired by A P Hota, former MD & CEO of NPCI, to examine various aspects of establishing this digital public infrastructure. According to the latest annual report of the RBI, there has been a significant surge in bank frauds, with the amount involved rising nearly three times to Rs 36,014 crore in FY25, compared to Rs 12,230 crore in the previous year. Of this, as much as Rs 25,667 crore worth of frauds were reported by public sector banks as against Rs 9,254 crore a year ago. Frauds have occurred predominantly in the category of digital payments (card/internet) in terms of the number and primarily in the loan portfolio (advances) in terms of value, it said. While card/internet frauds contributed maximum to the number of frauds reported by private sector banks, frauds in public sector banks were mainly in advances, it said.
Time of India
22-06-2025
- Business
- Time of India
RBI-led initiative to curb digital frauds gains momentum, banks roped in to set up DPIP
In a bid to rein in the increasing incidence of digital payment frauds , major public and private sector banks have been roped to develop Digital Payment Intelligence Platform (DPIP) as a Digital Public Infrastructure (DPI) under the supervision and guidance of the RBI . The proposed platform seeks to bolster fraud risk management by facilitating real-time intelligence sharing and gathering, thereby preventing fraudulent digital transactions, sources said. According to sources, the institutional structure of the proposed entity would be created with the help of both public sector and private sector lenders as fraud is a common monster. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Earlier this month, a high-level meeting in this regard was convened to finalise the structure of the platform where senior bank officials, RBI officials and other stakeholders were present. Since the issue is one of the top agenda for both the government and the Reserve Bank of India (RBI), sources said the platform should become operational in the next few months. Live Events Once operational, DPIP will collect and analyse data from various sources to identify potential threats and prevent fraudulent activities. By enabling real-time data sharing, the platform will help prevent scams and ensure secure transactions. Reserve Bank Innovation Hub (RBIH) has been assigned for building a prototype of DPIP in consultation with 5-10 banks. It is going to leverage advanced technologies to curb payment-related frauds. RBI, in June last year, formed a committee, chaired by A P Hota, former MD & CEO of NPCI , to examine various aspects of establishing this digital public infrastructure. According to the latest annual report of the RBI, there has been a significant surge in bank frauds, with the amount involved rising nearly three times to Rs 36,014 crore in FY25, compared to Rs 12,230 crore in the previous year. Of this, as much as Rs 25,667 crore worth of frauds were reported by public sector banks as against Rs 9,254 crore a year ago. Frauds have occurred predominantly in the category of digital payments (card/internet) in terms of the number and primarily in the loan portfolio (advances) in terms of value, it said. While card/internet frauds contributed maximum to the number of frauds reported by private sector banks, frauds in public sector banks were mainly in advances, it said.
