The recent report on cyber fraud prevention measures implemented by the Indian government has revealed significant success in preventing financial frauds. According to data received from the ‘Citizen Financial Cyber Fraud Reporting and Management System,’ approximately Rs 4,386 crore has been saved from being siphoned off due to these initiatives. The government has received over 13.36 lakh complaints through this system, highlighting the widespread nature of cyber fraud in the country.
To strengthen cybersecurity in the financial sector, the Ministry of Home Affairs (MHA) has launched several key initiatives. The Indian Cyber Crime Coordination Centre (I4C) and the National Cyber Crime Reporting Portal (https://cybercrime.gov.in) have been introduced to facilitate reporting of cybercrimes by citizens. Additionally, a suspect registry has been established in collaboration with banks and financial institutions to track cybercriminal identifiers, enhancing the ability to detect and prevent fraudulent activities.
In a move to combat cyber fraud, the Reserve Bank of India (RBI) has introduced an AI-based tool called ‘MuleHunter’ to identify money mules used in fraudulent transactions. The central bank has also issued stringent security guidelines for digital payments, ensuring that banks adhere to minimum security standards for internet and mobile banking, card payments, and other financial transactions. These measures aim to safeguard the financial ecosystem from cyber threats and ensure the security of transactions.
Furthermore, the National Payments Corporation of India (NPCI) has implemented additional security measures to protect UPI transactions. These include device binding between the customer’s mobile number and the device, two-factor authentication through PIN, daily transaction limits, and AI/ML-based fraud monitoring solutions for banks. By leveraging technology and stringent security protocols, NPCI aims to reduce the incidence of fraudulent activities in digital payments.
In conjunction with these efforts, the RBI, banks, and financial institutions are actively engaging in awareness campaigns to educate the public about cybersecurity best practices. Through SMS alerts, radio campaigns, and cybersecurity education programs, stakeholders are working towards empowering individuals to recognize and prevent cyber fraud incidents. By promoting a culture of vigilance and awareness, the financial sector hopes to mitigate the impact of cyber threats and protect consumers from financial losses.
Minister of State for Finance, Pankaj Chaudhary, shared this information in a written response to the Rajya Sabha, highlighting the government’s commitment to strengthening cybersecurity and combating cyber fraud in the country. With ongoing efforts and collaborative initiatives, the authorities are determined to create a secure and resilient financial ecosystem that safeguards the interests of the public.