{"id":259129,"date":"2023-09-07T20:44:04","date_gmt":"2023-09-07T15:14:04","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=259129"},"modified":"2023-09-07T20:44:04","modified_gmt":"2023-09-07T15:14:04","slug":"over-30-upi-frauds-in-3-states","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/over-30-upi-frauds-in-3-states\/","title":{"rendered":"Over 30% UPI frauds in 3 states"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cOver 30% UPI frauds in 3 states<\/strong>\u201d published in<\/strong> Business Standard <\/strong>on\u00a07th<\/sup> September 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Internal Security – Cyber Security<\/strong><\/p>\n

Relevance: <\/strong>concerns with increasing digital banking\/UPI frauds<\/strong><\/p>\n

News: <\/strong>India recently reached a significant milestone of 10 billion Unified Payments Interface (UPI) transactions, indicating the growing popularity of digital payments. However, this increase has also led to an increase in fraud cases.<\/p>\n

What are some of the findings of the fraud cases related to UPI\/digital banking?<\/strong><\/h2>\n

India has witnessed an increase in UPI frauds, with over 30% originating from Uttar Pradesh, Gujarat, and West Bengal<\/strong>, and approximately 55% of all reported digital payment frauds being UPI-related.<\/p>\n

The majority of these UPI frauds (50%) involve sums below \u20b910,000, with an estimated average of 80,000 UPI frauds occurring each month in India.<\/strong><\/p>\n

A trend of fraudulent UPI apps, posing as authorized users, has emerged. These deceptive apps are employed for defrauding individuals through methods like phishing, malware, UPI ID spoofing, and device monitoring.<\/p>\n

According to an RBI report,<\/strong> digital banking fraud surged from 3,596 cases with losses of approximately \u20b9155 crore in FY22 to 6,659 cases amounting to \u20b9276 crore in FY23.<\/p>\n

Experts also warn that fraudsters may soon utilize artificial intelligence (AI) and machine learning (ML) to cheat users.<\/strong> These evolving threats could make it more challenging to identify phishing emails.<\/p>\n

What measures have already been taken to prevent digital frauds?<\/strong><\/h2>\n

First,<\/strong> the National Payments Corporation of India (NPCI) has implemented a 24×7 monitoring system with an average response time of 24 hours to combat these threats.<\/p>\n

Second,<\/strong> banks are mandated to provide Fraud Monitoring Returns within three weeks of detecting fraud, regardless of the amount involved.<\/p>\n

Third, <\/strong>the RBI has issued third-party outsourcing guidelines to prompt the fintech ecosystem to invest in security and improve processes.<\/p>\n

Fourth,<\/strong> bodies such as the Central Fraud Registry, Centralised KYC Registry, Central Payments Fraud Information Registry had been established to report information on data and fraud.<\/p>\n

What more can be done to prevent digital banking frauds?<\/strong><\/h2>\n

The following measures can be taken by users to prevent digital frauds:<\/strong><\/p>\n

    \n
  1. Users should practice digital safety by safeguarding their UPI PIN, never sharing sensitive information such as OTP or UPI PIN, and enabling two-factor authentication (2FA) for enhanced security.<\/li>\n
  2. Reviewing transaction history for unauthorized activity is crucial.<\/li>\n
  3. Invest in reputable paid antivirus software, avoid malicious downloads, and use unique passwords for different platforms.<\/li>\n
  4. Report fraud incidents promptly to authorities, financial institutions, and regulators for swift action.<\/li>\n
  5. Digital forensics may be used to investigate and analyze IP addresses, email headers, and other digital traces to identify fraudsters.<\/li>\n
  6. Payments service providers, app developers, and operators should improve their technology to identify and prevent irregularities.<\/li>\n
  7. Set transaction limits based on user risk profiles and implement extra authentication for high-value transactions.<\/li>\n
  8. Use AI and ML algorithms to spot anomalies.<\/li>\n
  9. Ensure secure, updated Application Programming Interfaces (APIs) for UPI integration and invest in data encryption for user data protection.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    Source: The post is based on the article\u00a0\u201cOver 30% UPI frauds in 3 states\u201d published in Business Standard on\u00a07th September 2023. Syllabus: GS 3 \u2013 Internal Security – Cyber Security Relevance: concerns with increasing digital banking\/UPI frauds News: India recently reached a significant milestone of 10 billion Unified Payments Interface (UPI) transactions, indicating the growing… Continue reading Over 30% UPI frauds in 3 states<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216,406],"class_list":["post-259129","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","tag-internal-security","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/259129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=259129"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/259129\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=259129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=259129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=259129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}