Consumer Awareness Towards Digital Payment Fraud in India

Author :

Dr.S.Saikrishnan

Associate Professor

Department of Commerce,

PSG College of Arts & Science

Coimbatore-641014.

e-mail:sairammoorthi1971@gmail.com

Abstract

The rapid expansion of digital payment systems has significantly transformed the financial transaction landscape in India. The increasing adoption of mobile banking, online payment platforms, and digital wallets has improved convenience, speed, and accessibility of financial services. However, the widespread use of digital payment systems has also led to a rise in digital payment fraud, posing serious risks to consumers. Fraudulent activities such as phishing, identity theft, unauthorized transactions, and fake payment links have become increasingly common in the digital economy. These cybercrimes often target consumers who lack adequate awareness of digital security practices. In response to these challenges, regulatory authorities and financial institutions have implemented various consumer protection measures and awareness initiatives. Institutions such as the Reserve Bank of India have introduced guidelines and security frameworks to safeguard digital transactions and protect consumers from financial fraud. This study examines the level of consumer awareness regarding digital payment fraud in India and analyses the effectiveness of existing regulatory measures aimed at protecting consumers. The research adopts a doctrinal and analytical approach using secondary data from official reports, academic studies, and policy documents. The findings indicate that while digital payment systems offer numerous benefits, inadequate consumer awareness and evolving cyber fraud techniques continue to pose significant challenges. The study concludes that strengthening consumer education, enhancing cybersecurity measures, and promoting digital literacy are essential to ensure secure digital financial transactions.

Keywords

Digital Payment Fraud; Consumer Awareness; Cyber Fraud; Digital Payments; Financial Security; Digital Literacy; Consumer Protection.