UPI Transactions Soar while Fraud Incidents Call for Caution
BJP leader Ashwini Kumar Choubey called on Finance Minister Nirmala Sitharaman on Monday. Image credit Ministry of Finance
Rising UPI Frauds Highlight Need for User Vigilance
By Kumar Vikram
New Delhi, November 25: Over the past three years, Unified Payments Interface (UPI) transactions in India have skyrocketed, highlighting the nation’s growing preference for cashless payments. However, this exponential rise has been accompanied by a concerning increase in fraud cases, underscoring the need for vigilance among users.
UPI fraud incidents have surged significantly, with cases rising from 7.25 lakh in 2022-23 to 13.42 lakh in 2023-24, resulting in financial losses escalating from ₹573 crore to ₹1,087 crore. In the current fiscal year (2024-25), up to September alone, 6.32 lakh fraud incidents have already been reported, amounting to ₹485 crore in losses.
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The growth of UPI transactions in India has been phenomenal, reflecting the nation’s shift towards a digital economy. In 2022-23, UPI recorded 8,371.43 crore transactions amounting to ₹139.15 lakh crore. This momentum accelerated further in 2023-24, with transaction volumes soaring to 13,112.96 crore, valued at ₹199.96 lakh crore. The trend continues in 2024-25, with 8,566.52 crore transactions worth ₹122.05 lakh crore processed by September alone. This rapid expansion underscores the convenience and popularity of UPI as a preferred mode of payment across the country.
UPI Growth at a Glance
UPI transaction volumes in India have grown at an unprecedented pace:
2022-23: 8,371.43 crore transactions worth ₹139.15 lakh crore.
2023-24: 13,112.96 crore transactions worth ₹199.96 lakh crore.
2024-25 (Till September): 8,566.52 crore transactions worth ₹122.05 lakh crore.
This massive growth reflects India’s embrace of digital payments, driven by ease of use and government-backed initiatives promoting financial inclusion.
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Rising Concern: UPI Fraud
However, the increase in UPI usage has also seen a surge in fraud cases:
2022-23: 7.25 lakh incidents, totaling ₹573 crore in losses.
2023-24: 13.42 lakh incidents, with losses escalating to ₹1,087 crore.
2024-25 (Till September): 6.32 lakh incidents, causing ₹485 crore in losses.
These figures highlight the darker side of the digital revolution, with fraudsters exploiting vulnerabilities in the system.
Government and RBI Interventions
To counter the rise in fraud, several initiatives have been introduced:
- Central Payment Fraud Information Registry (CPFIR): A platform for banks to report and monitor payment-related frauds.
- Fraud Mitigation Tools: Device binding, two-factor authentication via PINs, daily transaction limits, and AI/ML-based fraud detection models.
- Awareness Campaigns: Short SMS alerts, radio campaigns, and other publicity measures to educate users on preventing cyber fraud.
- Reporting Mechanisms: Citizens can report cyber frauds via the National Cybercrime Reporting Portal (gov.in) and the helpline number 1930.
- Additionally, the Sanchar Saathi Portal provides tools like ‘Chakshu’ to report suspected fraudulent communication related to KYC updates or bank account issues.
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Expanding UPI Globally
RBI’s Payments Vision Document 2025 aims to internationalize UPI by:
Linking UPI with other countries’ payment systems for remittances.
Enabling UPI app acceptance via QR codes abroad.
Deploying UPI-like infrastructure in partner countries.
User Vigilance: The Key to Safe Transactions
While UPI has revolutionized the way India transacts, users must exercise caution to stay safe. Be wary of unknown links, unsolicited calls, or messages asking for sensitive information. Always verify the source before acting and report any suspicious activity promptly.
The journey of UPI is a testament to India’s digital progress. By staying alert and utilizing the tools provided, citizens can enjoy the benefits of a secure and efficient payment system.
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