Rising UPI Fraud in India: Lack of Digital Fi...

Rising UPI Fraud in India: Lack of Digital Financial Literacy

Author Name : Subhosree Sarkar, Dr Gagan Pareek

ABSTRACT : The Unified Payment Interface (UPI), which the National Payment Corporation of India brought, is one of the new payment systems that are emerging as technology advances. UPI, a phone-centric payment bank, is becoming increasingly popular in India as a simple and effective way to make digital payments. However, like everything, UPI has some inefficient characteristics as well. In India, UPI scams have increased in frequency, particularly with the growth of digital transactions. Fraudsters apply a number of tactics to swindle individuals and exploit holes in the UPI ecosystem. The study focuses on different types of UPI fraud and the methods to prevent it. The study is also concerned with the importance of digital financial literacy to safeguard users from these kinds of scams. Secondary data sources include research papers, media stories, expert reviews, blogs, websites, reports, and journal articles. Due to scammers taking advantage of UPI applications' "request money" feature, users should be extremely alert while sending or receiving money.