India's Real-Time Payment Scams: A Growing Threat

A recent report highlights the increasing threat of scams in India's real-time payments ecosystem, with 34% of consumers reporting losses due to undelivered goods or services. Despite fewer losses reported in 2024, high-value scams doubled. Enhanced fraud detection is crucial for consumer protection.

A recent report by global analytics company FICO underscores the rising threat of scams within India's real-time payments (RTP) ecosystem. According to the report, 34% of consumers have fallen victim, paying for goods or services that were never delivered.

The report reveals alarming trends: while total reported losses decreased in 2024 compared to 2023, the percentage of high-value scams—those exceeding Rs 800,000—doubled from 2% to 4%. Notably, 56% of reported scams involved losses under Rs 50,000, yet these can be financially devastating for many households.

FICO's survey, conducted in 2024 with 1,000 Indian respondents and others from 14 countries, indicates that 45% of Indians see improved fraud detection as crucial for banks to safeguard against scams. As RTP usage grows among consumers, businesses, and the public sector, fraud prevention becomes increasingly critical.

(With inputs from agencies.)