How Much UPI Fraud Has India Experienced This Fiscal?
Click to start listening
Synopsis
The rise of digital payments in India has led to alarming UPI frauds worth Rs 805 crore, with over 10 lakh incidents reported. As UPI usage soars, the government is stepping up efforts to combat these fraudulent activities. Discover how authorities are addressing this growing concern.
Key Takeaways
- India has reported UPI frauds worth Rs 805 crore this fiscal year.
- The number of incidents has reached 10.64 lakh.
- Government and RBI initiatives aim to combat UPI fraud.
- Fraud monitoring solutions are provided to banks by NPCI.
- Citizens can report cyber incidents through dedicated portals.
New Delhi, Dec 15 (NationPress) India has experienced digital payment frauds totaling Rs 805 crore through the Unified Payments Interface (UPI), with 10.64 lakh incidents reported up until November this fiscal year (FY26). This figure marks an increase compared to previous years as UPI adoption continues to grow, as stated in Parliament on Monday.
In FY 2024-25, UPI-related frauds amounted to Rs 981 crore involving 12.64 lakh incidents, while FY 2023-24 saw losses of Rs 1,087 crore from 13.42 lakh incidents, according to Union Minister of State for Finance, Pankaj Chaudhary, who addressed the Lok Sabha.
“As digital payment transactions have surged in the country, instances of fraudulent activities, including UPI frauds, have also increased over the past few years,” he noted.
During FY 2022-23, UPI frauds totaled Rs 573 crore, up from Rs 242 crore in FY 2021-22.
To combat payment-related frauds, including those involving UPI, the government, along with the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), have initiated several measures over time.
These measures include device binding between a customer’s mobile number and device, two-factor authentication via PIN, daily transaction limits, and restrictions on certain use cases, as mentioned by the minister.
Additionally, the NPCI offers a fraud monitoring solution to banks for generating alerts and declining transactions using AI/ML models. The RBI and banks are also conducting awareness campaigns through SMS, radio, and other media to prevent cyber-crime.
Furthermore, the Ministry of Home Affairs (MHA) has launched the National Cybercrime Reporting Portal (www.cybercrime.gov.in) and a National Cybercrime Helpline Number '1930' for citizens to report any cyber incidents, including financial frauds.
Moreover, the Department of Telecommunications (DoT) has introduced the Digital Intelligence Platform (DIP) and the ‘Chakshu’ facility, allowing citizens to report suspected fraudulent communications received via calls, SMS, or WhatsApp.
According to NPCI data, UPI transactions grew by 32 percent year-on-year, reaching 20.47 billion in November, along with a 22 percent annual increase in transaction amounts to Rs 26.32 lakh crore.
Point of View
It’s crucial to recognize the balance between technological advancement and security measures. With the increasing adoption of digital payments, there is an urgent need for robust fraud prevention systems. The government's proactive stance alongside financial institutions is commendable, yet continuous vigilance and education for users are vital in navigating this digital landscape.
NationPress
15/12/2025
Frequently Asked Questions
What is UPI fraud?
UPI fraud refers to unauthorized transactions made through the Unified Payments Interface, often involving phishing scams or compromised credentials.
How can I protect myself from UPI fraud?
To protect yourself, always enable two-factor authentication, be wary of unsolicited messages, and regularly monitor your transaction history.
What should I do if I fall victim to UPI fraud?
Immediately report the incident to your bank and file a complaint with the National Cybercrime Reporting Portal.
