NPCI Issues Advisory to Combat Rising Digital Fraud Incidents
With incidents of online fraud, including ‘digital arrest’, on the rise, the National Payments Corporation of India (NPCI) has issued an advisory outlining steps to protect users against such scams. The NPCI, which oversees India’s retail payment systems, has urged citizens to identify these scams based on several themes. These themes include unexpected calls from alleged government officials, fear-induced language from perpetrators, and attempts to coerce individuals into divulging sensitive bank details.
The NPCI highlighted that terms such as “clearing your name (from involvement in an alleged crime)”, “assisting with the investigation”, or “refundable security deposit/escrow account” may be used by scammers to persuade victims into transferring money to specific bank accounts or UPI IDs. The advisory emphasizes that authentic government officials or law enforcement agencies (LEAs) will never request money or conduct investigations over phone or video calls.
A ‘digital arrest’ refers to scams where fraudsters impersonate law enforcement officials, tricking victims into sending money or sharing personal information. These scamsters often threaten to file fake cases against victims or their family members, initiating communication through digital channels like video calls over Skype or WhatsApp. The NPCI has urged users to report suspicious numbers and accounts to the National Cybercrime Helpline by dialing 1930. Additionally, users should document interactions by saving screenshots and messages to assist LEAs during investigations.
This advisory comes as financial losses to digital frauds continue to escalate. According to data from the Ministry of Finance, Indians have lost Rs 485 crore to frauds on the Unified Payments Interface (UPI) across 632,000 reported incidents during the ongoing financial year 2024-25 (FY25) until September. Since 2022-23, UPI-related frauds have resulted in cumulative losses of Rs 2,145 crore across 2.7 million reported incidents. In FY24 alone, 1.34 million fraud cases were reported, culminating in losses of Rs 1,087 crore.
In efforts to contain cases of ‘digital arrest’, the government has blocked over 669,000 SIM cards and 132,000 IMEIs (International Mobile Equipment Identity) as reported by authorities as of November 2024. The Indian Cyber Crime Coordination Centre (I4C) has also blocked more than 1,700 Skype IDs and 59,000 WhatsApp accounts reportedly used for digital arrest scams. The I4C, established by the Ministry of Home Affairs to tackle various cybercrimes in the country, has claimed that over Rs 3,431 crore has been saved from more than 994,000 complaints.
As digital fraud continues to pose significant risks, awareness and vigilance among users are paramount in preventing financial losses and protecting personal information.