Exposing the Growing Menace: Fraud in Contemporary India
Business Connect Magazine
Business Connect- A magazine of new era for the business community! We Aspire to Inspire! Connecting the Business world!
2024 has witnessed a significant rise in the number of frauds in India. As of Aug 31, 2024, a total of 4.78 million cybercrime complaints have been registered, marking a raid increase from 1.56 million last year. Among all these cases, 85% of these cases are associated with financial fraud like online investment scams, OTP forwarding, and illegal lending apps. The landscape has expanded to include several new elements, like part-time job deceptions and courier scams targeting young people involving QR codes.?
The increasing financial fraud in India and the hurdles given by tech support scams highlight the necessity of being extra conscious when working with financial transactions. In this article, we will explore the rising trends of fraud in contemporary India, the tactics used, and the results that characterise the evolving landscape of financial fraud in India.?
A Quick Insights on Fraud Statistics in? India
How Fraud is Impacting Indian Businesses Today?
Businesses become victims of fraudulent activities, with major financial losses being the most obvious consequence. But it is just one factor. The effects of fraud on Indian consumers and businesses include reputation damage, demoralised employees, lower customer loyalty, and most importantly, damaged relationships.?
Being a fraud victim can also affect the leaders and employees psychologically as the stress of coping with the situation can impair the decision-making process.?
Further, regulatory non-compliance stemming from a fraud case can cause fines, penalties and also lawsuits.? Businesses need to have a structured approach to detect and address the root causes and reduce the impact of fraud in Indian business.?
Indian Fraud Trends: At a Glance?
Synthetic identity is one of the major digital frauds under which fraudsters steal the Social Security number and manipulate the personal identification information to apply for credit through their new profile.?
Account takeover is doubling with every passing year as these types of fraud in India are getting more tech-savvy and automated. Data says that the mobile account takeover through SIM swap has increased by almost double from last year.?
Fraud through social networks is trending these days. Social media sites are playing a crucial role in making fraudulent methods more common and easier to access. Celebrities send their fans links containing fraud methods and tutorials, encouraging them to commit forged identities and social security cards.?
领英推荐
Fraud Prevention India: Impactful Steps?
To address the contemporary fraud issues, the Indian government has already introduced two-factor authentication, data privacy policies, and a Central Fraud Registry for better security.?
Apart from the government initiatives to combat fraud in India, several companies are actively working on developing their own FDp solutions. Over the last three years, the FDp investment has been continuously increasing.?
The role of technology in fraud in India is significant, but technology is also the best solution. Advanced AI, machine learning, biometrics, and blockchain are helping in fraud detection, real-time monitoring, and FDP solutions to protect the financial interest.?
Frequently Asked Questions?
What are the best fraud prevention strategies in India?
As per RBI guidelines, activate instant alerts for transactions, protect sensitive details, keep banks’ contact details handy, and follow the procedure after reporting fraud.?
Are you understanding the causes of fraud in India?
According to the case studies of significant fraud cases in India, banks did not observe due diligence, both before and after disbursing loans, which is one of the major causes of banking fraud.?
How do I report fraud in contemporary India?
Here is the stepwise process to report cyber fraud in India:
Must Read: