Why growing trust in digital payments may be leaving Indians more exposed to cybercrime, Pg9

Key Highlights:

• UPI processed over 24,000 crore transactions with a value exceeding ₹314 lakh crore in FY 2025-26.
• India's 70% internet penetration makes its large digital user base a prime target for cybercriminals.
• The Status of Policing in India Report (SPIR) 2026 reveals a paradox where high trust and usage of digital payments correlate with increased cybercrime victimization.
• Approximately three out of four Indians consider UPI safe, with nearly half using it daily.

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Detailed Insights:

• Almost half (49%) of respondents use UPI apps daily, while another quarter (24%) use them once or twice a week.
• UPI is considered "very safe" by 34% and "somewhat safe" by 41% of users, making it the most trusted payment method.
• The SPIR 2026 found that individuals most prone to unsafe online practices were also the most confident about online banking.
• Victims of cybercrime were more likely to have considered online banking modes "very safe" compared to non-victims.
• Frequent UPI users showed a higher likelihood of having been victims of cybercrime in the last 2-3 years.
• Cybercriminals utilize "kits" containing pre-activated SIM cards, bank accounts, and phones to remain largely untraceable.
• Fraudsters employ sophisticated schemes, including fake investment apps, digital arrest, and social engineering, to deceive victims.
• Unwitting individuals are recruited as money mules by lending their bank accounts to fraudsters, becoming replaceable links in the crime chain.

Key Concepts Involved:

• UPI (Unified Payments Interface): An instant real-time payment system developed by NPCI for inter-bank transactions.
• NPCI (National Payments Corporation of India): An umbrella organization for operating retail payments and settlement systems in India.
• Money Mule: An individual who transfers illegally acquired money on behalf of others, often unknowingly participating in criminal activity.