India Eyes Stronger Safeguards to Counter Rising Online Fraud

Leave a Comment / Cybersecurity, Data Protection, Enterprise Technology, Industry News / By cxojunction

India’s central bank is exploring stronger measures to curb the rapid rise in online fraud, following a sharp increase in financial scams targeting users of the country’s digital payments ecosystem.

Seeking public recommendations until May 9, the bank acknowledged that while India’s digital payments network has become a global benchmark for affordable and inclusive financial services, it has also become an attractive target for cybercriminals. Online fraud losses reached nearly $3 billion in 2025, marking an almost 40-fold increase since 2021.

According to the Reserve Bank of India, most fraud cases stem from social engineering, impersonation, and coercion rather than technical breaches. Criminals frequently pose as law enforcement officials or other trusted authorities to pressure victims into transferring large sums of money. The bank noted that vulnerable groups, particularly senior citizens, have been disproportionately affected, underscoring the need for stronger safeguards.

Among the proposals under consideration is introducing a short delay before processing high-value digital payments. The bank believes this pause could interrupt fraudsters’ psychological influence and provide users with time to reconsider suspicious transactions. It is also evaluating an additional authentication layer involving a trusted person for high-value transfers.

The proposed measures come as digital payments continue to expand rapidly across the country. Over the past decade, transaction volumes have increased 38-fold, while transaction values have more than tripled, highlighting the growing importance of securing India’s digital financial ecosystem.

As digital payments continue to grow at an unprecedented pace, strengthening fraud prevention has become essential to protecting users and preserving confidence in India’s digital economy. If adopted, these measures could reduce the success of social engineering attacks, enhance transaction security, and reinforce trust in the country’s rapidly expanding digital payments ecosystem.

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Source: India considers stronger safeguards as online fraud surges | ETCISO – The Economic Times | IT Security News | Latest IT Security Sector Information and Updates: ET CISO