UPI Frauds: 27 Lakh Cases Worth Rs2,145 Crore Registered in 30 Months: Govt
Moneylife Digital Team 26 November 2024
Even as the number of payment transactions through unified payment interface (UPI) are increasingly rapidly so are the frauds. From financial year (FY) 22-23 to September 2024, UPI fraud incidents jumped to 2.7mn (million) or 26.99 lakh cases worth Rs2,145 crore, the Lok Sabha was informed. 
 
 
In a written reply, Pankaj Chaudhary, minister of state in the ministry of finance says, "To prevent payment related frauds including UPI transaction frauds, various initiatives have been taken by the government, RBI and National Payments Corporation of India (NPCI) from time to time. These, inter alia, includes device binding between customer mobile number and the device, two factor authentication through PIN, daily transaction limit, limits and curbs on use cases. Further, NPCI provides a fraud monitoring solution to all the banks to enable them to alert and decline transactions for fraud mitigation by using artificial intelligence (AI) or machine learning (ML) based models. RBI and Banks have also been taking awareness campaigns through short SMS, radio campaign and publicity on prevention of cyber-crime."
 
The data shared by the minister for FY24-25 is for the first six months till September. However, it shows similarly alarming growth in number of UPI frauds as reported for FY23-24. During FY23-24, UPI fraud incidents surged 85% to 1.34mn or 13.42 lakh cases worth Rs1,087 crore.
 
Dr Alok Kumar Suman, a member of Parliament (MP) has asked about total number of UPI transactions and number of incidents of frauds reported in the UPI cash transactions during the last two years and the current year. 
 
In reply, Mr Chaudhary, the minister says Reserve Bank of India (RBI) has informed that the UPI transactions do not capture the geographical location. 
 
 
Further, RBI has implemented central payment fraud information registry (CPFIR), a web-based payment related fraud reporting tool since March 2020 and all regulated entities (RE) are required to report the payment related frauds to the CPFIR, the minister added.
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