"47% of Indians Hit by Financial Fraud in 3 Years; UPI & Credit Cards Top Targets: Survey"

A recent survey by LocalCircles found that about 47% of Indians encountered financial fraud in the past three years, with UPI and credit cards being the most frequent targets. Out of 23,000 people surveyed across 302 districts, more than half also reported unauthorized charges on their credit cards from domestic or international merchants and websites.

According to the survey report, the findings emphasize the importance of implementing safeguards and raising consumer awareness to prevent fraud. When asked if they or their family members had experienced fraud, 43% reported fraudulent transactions on their credit cards, while 36% mentioned fraudulent transactions on UPI. Among credit card frauds, 53% of respondents mentioned unauthorized charges from domestic merchants and websites.

According to LocalCircles citing RBI data, in FY24, there was a 166% rise in fraud cases to over 36,000, despite the total value being almost half compared to the previous fiscal, amounting to Rs 13,930 crore. Based on feedback from the past three years, LocalCircles estimates that 6 out of 10 Indians do not report financial fraud to regulators or law enforcement agencies.

Few measures can be taken in order to avoid such frauds:

1. Never Share Your UPI PIN or OTP 

A crucial mistake to avoid is sharing your UPI PIN and OTP with any customer care representative who claims to be from a bank or government agency. It's important to remember that legitimate banks and government institutions will never ask for your UPI PIN, OTP, or password over the phone. If you receive such a call requesting these details, it's likely a fraudulent attempt, and you should avoid sharing any sensitive information.

2.  Don't Open Any Random Links

Beware of messages offering rewards or cash incentives and urging you to make transactions through random links or websites. This is a common tactic used by fraudsters to steal your UPI PIN and access funds from your bank account. Always verify the authenticity of the UPI link and the account holder's name before making any payments to ensure your security. Avoid clicking on suspicious links or sharing sensitive information to protect yourself from financial fraud.

3. Never Give Access to Your Phone or Computer

Fraudsters often deceive people by requesting access to their phone and computer under the guise of KYC (Know Your Customer) verification. Never grant such access to any customer care agent to safeguard your bank accounts from hacking attempts. Stay cautious and avoid falling victim to these scams.

4. Monitoring

Regularly monitor your transactions for any unusual activities or patterns to promptly detect and prevent potential fraud. By staying vigilant, you can protect your financial accounts from unauthorized access and fraudulent activities effectively.

5. Regularly Changing Your UPI PIN

To enhance security for your UPI account, remember to change your UPI PIN regularly, ideally every three months. This simple step helps protect you from potential UPI fraud and ensures your account remains secure.

Remember these safety measures whenever you encounter any unusual activity or receive suspicious calls related to your UPI account. Understanding common fraud tactics will also help you recognize potential threats and keep your account secure.