Research & Opinion
UPI Frauds: Indians Lose Rs 2,630 Crore in 33.32 Lakh Reported Cases from 2022 Till September 2024, Says Government
In the ongoing financial year (FY25), Indians have reported losing a substantial Rs 485 crore to UPI frauds across 632,000 incidents, as per data from the Ministry of Finance. This alarming trend reflects a broader issue, with cumulative losses from UPI-related frauds reaching Rs 2,145 crore since FY23, spanning over 2.7 million reported incidents.
The previous fiscal year (FY24) witnessed a significant surge in UPI fraud cases, with 1.34 million incidents and losses totaling Rs 1,087 crore. This parallel increase in fraudulent activities mirrors the rising popularity and usage of UPI, which currently boasts over 400 million unique users and processes billions of transactions each year.
While the absolute number of fraudulent transactions is concerning, it’s important to note that they still constitute a minuscule fraction of the overall UPI transaction volume. In FY25 alone, UPI facilitated 85.6 billion transactions worth Rs 122 trillion.
The problem of financial fraud extends beyond UPI. Bank frauds have also seen a dramatic increase, with reported cases more than tripling from 8,752 in FY21-22 to 32,363 in FY24, resulting in losses exceeding Rs 2,700 crore.
To combat this growing threat, the Reserve Bank of India (RBI) established the Central Payments Fraud Information Registry (CPFIR) in March 2020. This web-based platform mandates all regulated entities to report payment-related frauds, aiding in the identification of patterns, prevention, and investigation of such incidents.
While the increasing number of fraud cases is undoubtedly a cause for concern, it’s crucial to recognize the proactive measures being taken by regulatory authorities and financial institutions to mitigate risks. As UPI continues to evolve and expand its reach, robust security measures and user awareness remain paramount to safeguard the digital payment ecosystem.