July 24, 2024

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Based on a recent survey by LocalCircles, nearly half of Indians (47%) have been subjected to financial fraud over the past three years. The study, which comprised responses from 23,000 people across 302 districts, indicates that UPI and credit card fraud are the primary types of financial scams.

Unauthorized transactions and prevalent fraud schemes

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More than half of the participants reported illegal charges on their credit cards by both local and foreign traders. Specifically, 43% of the survey participants encountered deceptive credit card transactions, while 36% were subjected to fraudulent UPI transactions.

Key Takeaways:

– 47% of Indians were victims of financial fraud within the past three years.
– UPI and credit card frauds are the most widespread.
– Over half of participants reported unauthorized charges on their credit cards by both local and foreign merchants.
– The survey noted a gender split with 62% of respondents being male and 38% being female.

A survey by LocalCircles on forms of fraud revealed alarming statistics, highlighting that 43% of respondents had experienced fraudulent credit card transactions and 36% were victims of fraudulent UPI transactions.

Government data also shows a sharp rise in fraud incidents. According to the Reserve Bank of India (RBI), fraud cases witnessed a 166% increase in FY24, accounting for over 36,000 instances. Despite the rise in fraud cases, the total value of the scams was only half that of the previous fiscal period, totalling Rs 13,930 crore.

One of the report’s findings indicates that a majority of Indians (about 6 in 10) do not report financial fraud to the authorities or the police. Among the urban respondents, 43% experienced credit card fraud and 30% faced UPI fraud.

Also, the survey highlighted that Indian consumers’ personal and financial data are readily available for purchase. This ease of accessibility increases their vulnerability. Moreover, several international websites and applications do not demand OTP authentication, which heightens the risk of unauthorized transactions.

Frequently Asked Questions Related to the Topic

How prevalent is financial fraud in India?

According to a survey by LocalCircles, nearly 47% of Indians have experienced some form of financial fraud in the past three years. The most common types of such fraud involve credit card and UPI transactions.

Why don’t majority of Indians report financial fraud?

LocalCircles estimates that around 6 in 10 Indians do not report financial fraud primarily due to a lack of awareness of the reporting procedure and a general sense of apathy, believing that reporting won’t make a difference.

How can e-commerce sites facilitate financial fraud?

The survey suggests that several international e-commerce sites and applications do not require OTP authentication, making it easier for fraudulent parties to execute unauthorized transactions.