India is witnessing a rising issue with cyber fraud as more individuals move towards online payments. The nation lost ₹107.21 crore to online fraud in the first three quarters of the ongoing financial year (FY25). The trend was underlined in figures tabled in the Lok Sabha, indicating that more than 13,000 cases of cyber fraud have already been reported this year.

Cyber fraud has been progressively on the rise in India over the past years, particularly as payments online have become increasingly popular. Statistics from commercial banks and financial institutions indicate that instances with values of ₹1 lakh or above have been consistently rising.

The largest loss till date was in FY24, where cases of fraud resulted in a total loss of ₹177.05 crore in 29,082 cases. The smallest loss was seen in FY15, with ₹18.46 crore lost in 845 cases.

Here's how the financial losses and number of cases have altered year by year:

Why is cyber fraud on the rise?

The increase in cyber fraud is attributed to the swift expansion of digital payments in India. Increasingly, people are using mobile applications and online banking, which has simplified financial transactions — but also exposed them to cyber attacks.

To counter the increasing threat of cyber fraud, the Reserve Bank of India (RBI) rolled out new Fraud Risk Management guidelines in July 2024. These guidelines are expected to make online transactions and banking safer through:

Early warning systems (EWS): Banks and financial institutions are mandated to report suspicious activity and notify authorities in a timely manner.

More stringent KYC checks: Non-KYC and high-risk accounts are now subjected to stricter scrutiny.

Market Intelligence Unit: A special team will analyze fraud trends and recommend measures to avoid future attacks.

Role of the government

The Indian government has also initiated a number of programs to safeguard citizens from online fraud:

CERT-In (Indian Computer Emergency Response Team): CERT-In periodically performs cybersecurity audits and mock exercises to detect vulnerabilities in digital platforms.

Chakshu: A component of the Sanchar Saathi portal through which individuals are enabled to report fraud calls and messages.

National Cybercrime Reporting Portal and Helpline 1930: These websites enable victims to report financial scams in a quick manner and receive assistance from authorities.

How can you be safe?

These are some easy tips to safeguard yourself against cyber fraud:

  •  Don't share your OTP, bank account, or passwords with any individual.
  • Have strong and different passwords for all your accounts.
  • Be wary of suspicious messages or emails requesting personal details.

 Update your banking apps and turn on two-factor authentication for added security.

India's digital payments ecosystem is developing fast, bringing with it speed and convenience. Yet, growing concern over cyber fraud underscores the need for robust security. While the RBI and the government have been actively implementing stricter controls and raising awareness among users, making digital payments more secure for all is the objective now.

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