A recent survey by LocalCircles reveals that 47 percent of Indians have encountered financial fraud in the past three years. The survey, which collected responses from 23,000 individuals across 302 districts, indicates that UPI and credit card fraud are the most common types of financial fraud.
Unauthorised Charges and Common Fraud Methods
More than half of the respondents reported unauthorised charges on their credit cards by both domestic and international merchants. Specifically, 43 percent experienced fraudulent credit card transactions, and 36 percent faced fraudulent UPI transactions.
Key Findings:
- Financial Fraud Incidence: 47 percent of Indians have experienced financial fraud in the last three years.
- Common Fraud Types: UPI and credit card frauds are the most prevalent.
- Unauthorised Charges: Over half of the respondents reported unauthorised credit card charges by domestic and international merchants.
- Demographics: The survey revealed that 62 percent of the respondents were men, and 38 percent were women.
Types of Fraud:
The LocalCircles survey involving 23,000 respondents across 302 districts revealed alarming statistics:
- Credit Card Fraud: 43 percent experienced fraudulent transactions.
- UPI Fraud: 36 percent encountered fraudulent transactions.
According to the Reserve Bank of India (RBI), there was a 166 percent increase in the number of fraud cases in FY24, with over 36,000 incidents reported. Despite this increase, the total value of the frauds was nearly half that of the previous financial year, amounting to Rs 13,930 crore.
Lack of Reporting
LocalCircles estimates that 60 percent of Indians do not report financial fraud to authorities or law enforcement agencies. Among urban respondents, 43 percent experienced credit card fraud, while 30 percent faced UPI fraud.
Data Security Concerns
The survey highlighted that personal and financial data of Indian consumers are easily accessible for sale, making them susceptible to fraud. The lack of OTP authentication on many international websites and apps increases the risk of unauthorised transactions.
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