During October to March, payment fraud increased by 70.64% to Rs 2,604 crore.
According to RBI data, the number of payment frauds increased from 11.5 lakh in the last six-month period to 15.51 lakh in March 2024.
According to reserve Bank of India’s (RBI) data. payment fraud is on the rise. Domestic payment fraud increased from Rs 1,526 crore to Rs 2,604 crore over the six-month of period ending in March 2024, a 70.64 percent increase.
The new format includes e-commerce transactions such as digital bill payments, card-to-card transfers through ATMs, and transactions utilizing FASTags, whereas the RBI has solely taken into account domestic financial activities. Chargebacks, reversals, failed transactions, and expired cards/wallets are not included, though. It noted that information on domestic payment fraud data is available in the CPFIR (Central Payments Fraud Information Registry) and is provided by non-bank credit card issuers, non-bank PPI issuers, and scheduled commercial banks (except from RRBs).
The Reserve Bank of India (RBI) said on December 27, 2023, that banks have seen an unexpected increase in credit and debit card and online fraud. According to the research, the average amount of frauds committed fell by 85% between April and September of 2023–2024. Even so, the number of payment frauds in the card and internet segments increased significantly by 624 percent based on the reporting date.
According to the RBI, there were 12,069 cases of card and online payment fraud in 2023–24, for Rs 630 crore, compared to 2,321 cases for just Rs 87 crore in the same period the previous year.
Overall, As Finance report from April to September of 2023–24, banks showed 14,483 fraud instances totaling Rs 2,642 crore, compared to 5,396 cases totaling Rs 17,685 crore during the same time the previous year.
The total number of credit card users is 10.18 crore, up 1.65 crore from banks and NBFCs in FY24, according to RBI data. In March 2024, the value of credit card transactions reached a new high of Rs 164,223 crore, compared to Rs 149,206 crore in February. In March 2024, point-of-sale transactions amount around Rs 60,378 crore.
“The use of credit cards has increased significantly, and banks were competing to attract new customers.They provided EMI options, compelling reward points, and personal loans based on credit card usage. Personal loans are provided to cardholders depending on their credit score, according to a national bank executive.
taken from Time India Express