Credit/debit card, e-commerce frauds: 42 percent of Indians have experienced fraud in the last 3 years


India’s digital economy is growing at a pace never seen before in any other country or region. The digital payment ecosystem has skyrocketed with the inclusion of payment methods like UPI. However, there are many examples of financial frauds which are also on the rise. A new report claims that nearly 42 per cent of Indians have witnessed financial fraud, either themselves or with someone in the family, in the last three years. The survey also highlights the different types of frauds faced by these people.

A study conducted by LocalCircles has shared that surveyors or their family members have been victims of financial fraud in the last 3 years. The survey seeks to find out what kind of financial fraud people have experienced the most in India. The survey also revealed the percentage of victims who were able to get their money back or if there was some sort of solution.

Financial Fraud Survey Findings

According to the survey, around 42 per cent of Indians have faced financial fraud or know someone in the family who has faced financial fraud in the last three years. 54 percent of the people claimed that their family was not aware of any such fraud.

In terms of fraud types, bank account frauds were reported the most at 29 percent, followed by frauds by e-commerce websites. Credit card and debit card fraud was reported in 18 percent. 12 percent of those surveyed reported fraud by the mobile app.

When asked about the solutions offered by the respective forums or government officials, only 17 per cent claimed that they filed a complaint and got a refund thereafter. A staggering 55 per cent of the respondents did not get any positive response despite sharing the complaint.

Financial Fraud Survey Method

The survey received nearly 32,000 responses from citizens of 301 districts in India. A total of 62 percent of the respondents were men and 38 percent of the respondents were women. About 43 percent of the respondents were from Tier 1, 30 percent were from Tier 2 and the remaining 27 percent were from Tier 3, 4 and rural districts.

What to do to stay safe?

Password: The first step would be to report the issue. RBI has been advising citizens to report any financial frauds they experience. To guard against such financial losses, experts have been advocating the use of alpha-numeric password locks for emails, computers and mobile phones, which are difficult to crack. The password of your account used for carrying out transactions should be changed frequently.

Awareness Program: On the part of the bank, they need to do more to promote financial literacy in various Indian languages. RBI may conduct more awareness programs on the risk of financial fraud, and how financial information is stolen and all that needs to be protected.

Redressal Mechanism: There is an urgent need to fine-tune the redressal procedures when consumers contact their bank or financial institution. If only 17% of those facing financial fraud were able to get their money back. Similarly, the police system, which is the first complaint point for most Indians, is not sensitive to handle such issues or even provide guidance.

After credit/debit cards, e-commerce frauds: 42 percent of Indians have experienced fraud in the last 3 years, first spotted on BGR India.

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