An estimated 10,000 fraudulent transactions take place every month through e-wallet platforms

The Home Ministry has asked banks and e-wallet firms to publish statistics of online fraud and theft so that customers can make an “informed choice” before subscribing to the services. Home Minister Rajnath Singh also instructed all concerned to formalise an insurance plan for victims of bank fraud as most banks and insurance firms do not provide any cover for such frauds, an official said.

On Monday, Mr. Singh reviewed various measures, including strengthening of surveillance and legal frameworks, to deal with financial frauds using bank cards and e-wallets.

Big data analysis by IIT-Delhi for identification of perpetrators of phone frauds to prevent duplication across e-wallets, and providing additional information through SMS or email alerts to customers from banks or e-wallet companies are some of the key measures being taken by the government.

As per representational data available with the RBI, the value of prepaid payment instruments which mainly include e-wallets, increased from ₹1,320 crore in November 2016 to ₹ 2,760 crore in September 2017.

Note ban and after

As per an estimate by security agencies, around 10,000 fraud transactions are being reported every month through e-wallet platforms. Prior to the November 8, 2016 decision to demonetise ₹500 and ₹1000 notes, the figure stood at 4,000.

“The customer alert mechanism to include names of beneficiaries of any financial transaction wherever necessary for better traceability and cross-checking on the part of the victim, publishing online statistics depicting the specific incidents, frauds of e-wallet companies and banks along with details including investigation to enable customers to make an informed choice before subscribing to e-wallet services are other initiatives being planned,” a Home Ministry statement said.

An inter-ministerial committee on phone frauds (IMCPF) has been constituted in the Home Ministry in September last.