UPI has been used effectively in the country. Total UPI transactions in the country have increased by 57% year-on-year.
UPI fraud cases have increased by 85% in the financial year 2024. The number of fraud cases in the financial year 2023 was 7.25 lakh, which increased to 13.42 lakh in the financial year 2024. While the common people were cheated of Rs 573 crore in 2023, the total figure increased to Rs 1,087 crore in 2024. The Finance Ministry has revealed these shocking figures in a reply to the Parliament. This disclosure clearly highlighted the growing challenges in securing the country’s rapidly growing digital payment ecosystem.
This data aligns the scale of the fraud problem, 6.32 lakh UPI fraud incidents have already been reported in the financial year 24-25. This involves an amount of Rs 485 crore. Within a few months, this figure is almost half of last year’s number.
UPI has been used effectively in the country. Total UPI transactions in the country have grown by 57% year-on-year. UPI transactions are projected to grow from Rs 8,371 crore in FY23 to Rs 13,113 crore in FY24. For the current FY24-25, 8,566 crore transactions have already been recorded, indicating the growing use of the platform even as fraud cases continue to rise.
What did the Finance Ministry say
In response to the rise in fraud, the ministry has informed about several measures aimed at improving security and reducing vulnerabilities in the digital payment 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 focusing 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. To increase awareness among the general public, initiatives are being taken to educate people about preventing cyber crime. This includes campaigns through SMS, radio and public advisories to make people aware of frauds.
Additionally, the Department of Telecommunications has launched the ‘Chakshu’ feature on the Sanchar Sathi portal, allowing users to self-report fraudulent communications. The initiative includes calls, SMS and WhatsApp messages designed to deceive users, which can be reported by the general public.
With UPI expanding in India, the ministry assured the country’s Parliament that this initiative is part of a larger effort to secure digital payments and build public confidence in the system. The rise in UPI fraud cases is a matter of concern. The ministry stressed that proactive measures and public awareness campaigns are extremely important to ensure safe use of the rapidly growing payment platform.
