Banking Frauds - UPI Trancations Frauds

BANKING FRAUD –UPI TRANSACTION FRAUD
INTRODUCTION
An economy's ability to function and grow economically depends
heavily on the banking industry. When it comes to creating and carrying out financial policy,
banks are indispensable in all economic systems. The distinction is in how objectives and
strategies for achieving them are prioritized. Neo-liberal systems view increasing profits by
using all available resources as a goal in and of itself, but socialistic systems view bank
operations as also aiming to meet social needs and improve the economy as a whole.
Banks receive deposits, disburse loans, and make money by charging and
charging differing interest rates to depositors and borrowers, respectively. The procedure by
which banks receive money from a depositor and subsequently lend it to The term financial
intermediation refers to a borrower. The banking industry thrives in the financial their ability
to act as intermediaries, enabling them to give and receive money on make a deposit. The
bank is the economy's most important financial intermediary because it fills the void left by
economic agents experiencing surplus and deficit. Banks facilitate business activities, which
greatly aids in a country's economic development. Banks play a crucial role in determining
the government's monetary policies and assist in the creation of savings plans.
India's banking industry differs significantly from that of other Asian

countries due to the unique geographic, social, and economic characteristics of the nation.
India has enormous regional variations in income, a diverse range of cultures, and a vast
amount of land. Although a sizeable portion of the population lacks formal education, the
nation is home to a sizable pool of highly skilled managers and technologically savvy
individuals. Thirty to thirty-five percent of people live in metropolitan areas, with the
remaining population residing elsewhere.
INTRODUCTION OF UPI
The National Payments Corporation of India (NPCI) created the
Unified Payments Interface (UPI), an instant payment system. Person-to-merchant (P2M) and
peer-to-peer (P2P) transactions between banks are made easier by the interface.It allows for
the instantaneous transfer of money between two bank accounts using mobile devices. It is
necessary to register the device's mobile number with the bank. The recipient's UPI ID can be
used to send money. It is governed by the Reserve Bank of India (RBI) and operates as an
open source application programming interface (API) on top of the Immediate Payment
Service (IMPS). On August 25, 2016, Indian banks began to make their UPI-capable apps
available on the Google Play Store.
The platform boasted over 300 million active monthly users in India as
of November 2022. With an average value of ₹1,849 per transaction, the percentage of UPI
transactions in the overall volume of digital transactions increased from 23% in 2018–19 to
55% in 2020–21. In 2022, it made over 2,348 transactions possible every second.A number of
news articles and reports regarding the BFSI sector were published in August 2023. 10.5
billion transactions were recorded on the platform in August 2023, up from 9.9 billion in July
2023, according to data from the NPCI. UPI has completed over 10 billion transactions as of
August 2023.[13] Additionally, UPI recorded Rs 15.7 lakh crore in August, which was
marginally more than the record of Rs 15.3 lakh crore set in July.
In August 2023, UPI achieved a record of 10 billion transactions

valued at ₹14 trillion (US$180 billion). May saw the highest volume and value of UPI
transactions ever recorded, with a 58% year-over-year increase in monthly transactions.
Numerous nations, including France, Australia, Singapore, United Arab Emirates, Oman,
Saudi Arabia, Nepal, Bhutan, Sri Lanka, and others, have received UPI technology from
India.Person-to-person (P2M) transactions grew at a faster rate than UPI transactions, which
jumped from 4.6 billion in January 2022 to 9.3 billion in June 2023, according to a
Worldline report. There were 151 million UPI transactions in January 2018.
Frauds Banking
The Reserve Bank of India (RBI) disclosed bank frauds totaling more than
302.5 billion Indian rupees in the fiscal year 2023. Compared to more than 1.3 trillion rupees
in 2021, this was a decrease.
In India, bank frauds have unfortunately become commonplace and have

shaken public confidence in the nation's banking system. These fraudulent activities damage
the reputation of the participating institutions in addition to causing enormous financial
losses. This article will examine some of the biggest bank frauds to have happened in India,
examine the vulnerabilities that were used, and go over the actions that the government and
Reserve Bank of India (RBI) have taken to prevent future occurrences of this kind. The
financial sector in India has been significantly impacted by bank frauds, which have eroded
public confidence and exposed systemic weaknesses. In India, bank frauds have
unfortunately become commonplace and have shaken public confidence in the nation's
banking system. These fraudulent activities damage the reputation of the participating
institutions in addition to causing enormous financial losses. This article will examine some
of the biggest bank frauds to have happened in India, examine the vulnerabilities that were
used, and go over the actions that the government and Reserve Bank of India (RBI) have
taken to prevent future occurrences of this kind.
 The financial sector in India has been significantly impacted by bank frauds, which
have eroded public confidence and exposed systemic weaknesses.
 To address these issues, the government and the RBI have taken a number of actions,
concentrating on improving corporate governance, reporting procedures, and
oversight.
 Even though these steps have helped to reduce fraud, the banking industry must
continue to be watchful and flexible in the face of new risks.
 The stability and integrity of the Indian financial system can be strengthened by banks
protecting the interests of their stakeholders and customers through the promotion of a
transparent, accountable, and ethical culture.
UPI FRAUDS
Types of UPI frauds / online frauds
Phishing
Phishing is one of the most common UPI transaction frauds. Fraudsters send bogus
emails to access sensitive information. Once you key your details (password or PIN)
into the fraudulent site, the information is immediately passed on to the hacker for
misuse. This way, you become more prone to UPI scams.
Fraud Sellers
Fraudulent sellers are prevalent in online marketplaces. These fraudsters deceive
unsuspecting buyers by selling counterfeit products or getting the order processed but not
delivering the product. This leads to financial losses and a breach of trust in the e-commerce
website.
Fraud Through Screen Monitoring Apps

People with malicious intent can exploit screen monitoring apps to compromise your privacy
and security. These apps allow fraudsters to capture sensitive information like UPI PINs,
OTPs and other personal details by recording your screen activities without your knowledge.
This allows them to gain access to your banking information and conduct fraudulent
activities.
Malware
Malware is one of the most common forms of UPI fraud. It can be mistakenly downloaded
from a fake email attachment or an unsecured website. Malware is designed to extract and
copy data from the infected device.
Money Mule
Money mule is a more elaborate fraud. Once your financial data is obtained, fraud rings
transfer money to an intermediary account to house the loot. This account acts as one of the
money mules to park money collected from different unsuspecting victims. This type of fraud
is also common in UPI hacking.
SIM cloning
Sim Cloning is a recent addition that has mushroomed after the OTP-mandatory rule by
banks. If a fraudster clones your SIM, they can get the OTP on their device and then even
change your UPI PIN. The fraudster gets hold of your bank account details and ID proof to
reset the PIN. Within a minute, you will become a victim of UPI fraud.
OBJECTIVE
 To briefly understand how enquiries and investigation in UPI fraud are

conducted.
 To understand mind of fraudster.
 To suggest ways to check UPI frauds.
 To indentify the reason and causes of UPI frauds.
Group members
1. Pratik Santosh parad.

2. Sahil Sameer patil.
3. Sanika namdev matale.
4. Suhani sunil Wagh.

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BANKING FRAUD –UPI TRANSACTION FRAUD

India's banking industry differs significantly from that of other Asian

In August 2023, UPI achieved a record of 10 billion transactions

In India, bank frauds have unfortunately become commonplace and have

Types of UPI frauds / online frauds

Fraud Through Screen Monitoring Apps

 To briefly understand how enquiries and investigation in UPI fraud are

1. Pratik Santosh parad.

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