Digital Payment Fraud in India: Challenges and Prevention Strategies

Abstract

The rapid expansion of digital payment systems in India has significantly reshaped the financial landscape by enabling faster, more convenient, and accessible transactions. With the widespread adoption of platforms such as Unified Payments Interface (UPI), mobile wallets, and internet banking, digital transactions have become an integral part of daily life. However, this transformation has also led to a surge in digital payment fraud, posing serious threats to users and financial institutions. This paper explores the various types of digital payment fraud, examines their underlying causes, and evaluates their impact on the financial ecosystem. The study further highlights the importance of technological interventions, regulatory frameworks, and user awareness in mitigating fraud risks. The findings suggest that a combined approach involving education, innovation, and policy enforcement is essential for building a secure digital payment environment.