47% Indians faced financial fraud in 3 yrs; credit card, OTP scams top list

A recent survey conducted by LocalCircles reveals that 47 per cent of Indians have faced financial fraud in the past three years. The survey, which included responses from 23,000 individuals across 302 districts, highlighted that UPI and credit card fraud are the most common forms of financial fraud.

Unauthorised charges and common fraud methods

Over half of the respondents reported unauthorised charges on their credit cards by both domestic and international merchants. Specifically, 43 per cent of those surveyed experienced fraudulent credit card transactions, while 36 per cent encountered fraudulent UPI transactions.

Key findings:

— 47 per cent of Indians have experienced financial fraud in the past three years.

— UPI and credit card frauds are the most prevalent.

— Over half of respondents reported unauthorised charges on their credit cards from domestic and international merchants.

— The survey revealed that 62 per cent of the respondents were men, and 38 per cent were women.

Types of fraud:

A survey by LocalCircles of 23,000 respondents across 302 districts revealed alarming statistics:

— 43 per cent experienced fraudulent credit card transactions.

— 36 per cent faced fraudulent UPI transactions.

According to data from the Reserve Bank of India (RBI), there was a 166 per cent increase in the number of fraud cases in FY24, amounting to over 36,000 incidents. Despite this increase in cases, the total value of the frauds was nearly half of the previous financial year, totalling Rs 13,930 crore.

Lack of reporting

LocalCircles estimates that 6 in 10 Indians do not report financial fraud to authorities or law enforcement agencies. Among urban respondents, 43 per cent experienced credit card fraud, while 30 per cent faced UPI fraud.

Data security concerns

The survey pointed out that personal and financial data of Indian consumers are readily available for sale, making them vulnerable to fraud. Many international websites and apps do not require OTP authentication, increasing the risk of unauthorised transactions.