![PayPal & DSCI releases report on "Fraud & Risk Management in Digital Payments" PayPal & DSCI releases report on "Fraud & Risk Management in Digital Payments"](https://varindia.com/storage/news/uploads/2018/02/5f4f833de0f16.jpg)
Digital Payments have been growing in India at a much faster pace than global markets and thus safeguarding payments for consumers, MSMEs, businesses is of utmost priority. The e-commerce market in India is expected to grow to USD 200 bn by 2026 from USD 50 bn in 2018.
Data Security Council of India (DSCI) and PayPal India, together released a study report on Fraud & Risk Management in Digital Payments by Lt. Gen (Dr) Rajesh Pant, National Cyber Security Coordinator, GoI in the presence of K. Rajaraman, Addl. Secretary, Dept. of Economic Affairs, Ministry of Finance.
The report attempts to discuss about the sophisticated online payment fraud mechanisms, threats in the payment ecosystem, incorporating better fraud prevention strategies, role of upcoming technologies, and recommendations for various stakeholders involved in the payment ecosystem.
As of March 31, 2019, 925 million debit and 47 million credit cards have been issued in India, second only to China. As a result of the above momentum, the growth of online shoppers is 73% in tier-I cities whereas a staggering 400% in tier-II and tier-III cities.
The report covers various types of frauds scenarios such as buyer side, merchant side and cyber security frauds, and recent fraud case studies with their modus operandi.
The key challenges to safeguard frauds remain fraud detection, investigation and legislative challenges, multilevel awareness, cross-industry collaboration, security as a cost overhead, privacy laws, and organized criminal involvement.
Future fraud possibilities can shape up from exploitation of supply chain vulnerabilities, exploiting risk transfer controls and spoofing current fraud prevention mechanisms.
Therefore, the report showcases how upcoming technologies like AI/ML, computer vision, NLP can come to the rescue. There is significant focus on recommendations for various stakeholders involved in the payment ecosystem.
Lt. Gen (Dr) Rajesh Pant, National Cyber Security Coordinator, GoI, said: “Digitization and cyber security is at the core of Digital India’s mission and online payment safety is paramount for India to emerge as a leader globally.
“The Government has taken many steps to support businesses, SMBs across their digital journey, however upcoming legislations and strategies will further aid the positive momentum. COVID has also provided an opportunity to fast-track both adoption and regulatory focus. My congratulations to DSCI & PayPal to come up with a report which provides a good insight into the Digital Payment Fraud landscape and recommendations for the payment ecosystem to focus and remediate issues.”
“Digital Payment Safety is one of our key focus areas to alleviate the emerging concerns and underlying causes leading to mushrooming payment frauds. This report is an attempt to initiate discussions and develop solutions towards real-time fraud prevention and mitigation strategies”, said Rama Vedashree, CEO, DSCI.
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