Data | Significant rise in digital transactions met by surge in cyberfrauds

Cash continues to be preferred mode of transaction

In FY20, the number of new retail digital payments breached the 30 billion mark. Representative image. File

While the use of digital systems (credit cards, debit cards and national electronic funds transfers) has risen significantly, there has also been a concomitant increase in cyberfraud targeting digital users. Conviction rates for cyberfraud have been low. The complexity of the crimes committed could be a reason.

Digital rise

In FY20, the number of new retail digital payments breached the 30 billion mark and the value of such transactions went past the ₹3 lakh billion mark for the first time in India.

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Frauds rise

In FY18, 6,885 cases of cyberfraud were taken up for investigation, a 35% increase from the previous year. Frauds related to online banking recorded the highest increase of 62%.

 

Rare convictions

At the end of FY18, about 64% cases were pending police investigation; only 16.2% of OTP frauds were chargesheeted. Also, 95.9% cases were pending in courts; not one case ended in a conviction.

Cash is still the king

While digital payments have increased, cash continues to be the preferred mode of transaction.

The currency in circulation to GDP ratio increased to its pre-demonetisation level of 12% in FY20 from 11.3% a year ago.

 

Source: Reserve Bank of India, National Crime Records Bureau