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Top financial frauds in India: What you need to know and how to stay safe

A study found that 69% of online fraud cases in 2021 targeted Indian consumers, totalling ₹60,414 crores in 2021-2022

Financial frauds in India are a big problem for people and the economy. These scams involve tricks, fake schemes, and dishonest practices that harm investors and consumers. Even though there was less fraud reported in 2023 compared to 2021, with bank frauds dropping from 1.3 trillion rupees to 302.5 billion rupees, caution is still necessary. A study found that 69% of online fraud cases in 2021 targeted Indian consumers, totalling ₹60,414 crores in 2021-2022, according to RBI data.

The financial world in India faces various fraudulent activities:

UPI Scam Update

The rise of UPI transactions has brought convenience but also attracted fraudsters, with reported cases exceeding 95,000 in fiscal year 2022–2023. Identity-related frauds, particularly account-related scams, dominate, constituting 65% of all financial frauds in 2021.


Don’t click on suspicious links or reply to unknown messages. Verify UPI transactions carefully before approving.

Financial Frauds
Image: Indigo Learn

Digital Banking and Credit Card Frauds

Digital transactions’ popularity led to an increase in online banking and credit card frauds, with nearly 49% falling under the digital payment – card/internet – category in fiscal year 2023.

Regularly monitor bank statements, enable transaction alerts, and never share OTPs or sensitive information. Install reputable antivirus software for online protection.

Bank Frauds’ Overview

Though bank frauds saw a decline in 2023, Indian banks detected approximately 65,017 frauds between 2014 and 2023, resulting in a staggering loss of ₹4.69 lakh crore.

Be careful of unexpected calls or messages, update passwords regularly, and enable multi-factor authentication for online banking.

QR Code Scam Alert

QR code scams, particularly in Bengaluru, have seen an alarming increase, with 41% of reported cybercrime incidents attributed to QR code scams.

Only scan QR codes from trusted sources and update mobile security software regularly.

Investment Scam Warning

Fraudulent investment schemes continue to lure individuals with promises of unrealistic returns, as exemplified by the ₹712 crore Chinese investment fraud exposed in Hyderabad.

Conduct thorough research on investment opportunities, verify company credentials, and consult financial advisors.

Part-time Job Scam Alert

Online scammers exploit individuals with promises of easy part-time work, as evidenced by the increase in complaints received by Delhi police.

Research and verify the legitimacy of job offers, avoid sharing personal or financial information with unknown persons, and use reputable job portals.

Courier Scam Advisory

A new courier scam targeting young individuals has emerged, with 163 recorded instances in Bengaluru in 2023.

Check courier messages directly, don’t share personal info blindly, and be wary of unexpected calls.

Malware Warning

Fraudsters use deceptive tactics to install malware, compromising devices and gaining unauthorized access to financial information.

Install reputable antivirus and anti-malware software, avoid clicking on suspicious links, and regularly update device software.

It’s crucial to stay vigilant, cautious, and verify everything to protect against financial scams. Educate yourself about scams, verify identities, use strong passwords, enable two-factor authentication, and report suspicious activities promptly. If you fall victim to fraud, act fast, inform your bank, file complaints with authorities, and gather evidence.

You might also be interested in – RBI imposes restrictions on Paytm Payments Bank, stops onboarding of new customers

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