Fintech association launches awareness campaign about cyber fraud

Spotting fake lending apps and reporting online financial fraud will be part of Fintech Suraksha

A group representing the fintech industry on Friday launched an awareness campaign about unauthorised lending apps and cyber fraud in digital financial services.

Fintech Suraksha (FTS) will teach people how to spot fake lending apps, the importance of multi-factor authentication, safety practices while using payment services, and how to report online financial fraud, said the Digital Lenders Association of India (DLAI).

DLAI will use social media to create awareness among teenagers, senior citizens, and others to differentiate between unscrupulous financial schemes and registered DFS providers.

It will engage with law enforcement agencies, such as the Economic Offences Wing, and provide information to investigation officers. It will focus on cybersecurity and client protection-related regulations laid down by the Reserve Bank of India (RBI).

“FTS will focus on helping the officers understand about RBI and Ministry of Corporate Affairs registered regulated entities and genuine loan service providers (LSPs) and means to ascertain the veracity of such service providers,” said DLAI in a statement.

More than 3 million cybercrime complaints have been reported by citizens till date, according to data from the Union Home Ministry. Such crimes include job fraud, Ponzi schemes, illegal lending apps, impersonation, and ‘sextortion’, Business Standard reported earlier.

As many as 52,974 cybercrimes were reported in 2021 and the number increased by over 24 per cent to 65,893 in 2022, according to the National Crime Records Bureau. As many as 46.5 per cent of people accused of cybercrimes were convicted in 2022.

FTS will focus on states that have recorded the highest number of frauds in the past one year. It will hold workshops and launch the ‘India FinTech Suraksha Report 2024.’

“With the Fintech Surakhsha initiative, we aim to strengthen the fintech ecosystem and hope to achieve a scenario where no consumer falls prey to cyber thugs due to a lack of awareness,” said Jatinder Handoo, chief executive officer of DLAI.