Domestic UPI Frauds: Finance Ministry Presented Data in LokSabha

Introduction

Google India announced sachet loans on the Google Pay application to help small businesses in the country. Google India said that merchants in India often need smaller loans, hence, the tech giant launched sachet loans on the Gpay application. The company will provide loans to small businesses, which can be repaid in easier repayment instalments. To provide the load services, Google Pay has partnered with DMI Finance. This move comes at the Google for India, 2023, the flagship event to launch the Indian interventions planned by the big tech. 

What is a Sachet Loan? 

The loan system is the primary backbone of the global banking system. Since we have seen a massive transition towards the digital mode of transactions and banking operations, many online platforms have emerged. With the advent of QR codes, the Unified Payment Interface (UPI) has been rampantly used by Indians for making small or petty payments. Seeing this, Sachet loans made an advent as well, Sachet loans are essentially small-ticket loans ranging from Rs 10,000 to Rs 1 lakh, with repayment tenures between 7 days and 12 months. This nano-credit addresses immediate financial needs and is designed for swift approval and disbursement. Satchel loans are one of the most sought-after loan forms in the Western world. The ease of accessibility and easy repayment options have made it a successful form of money lending, which in turn has sparked the interest of the tech giant Google to execute similar operations in India. 

Google Pay

Pertaining to the fact that UPI payments are the most preferred form of online payment, google came out with GPay in 2013 and now enjoys a user base of 67 million Indians. Google Pay has a 36.10% mobile application market share in India, and 26% of the UPI payments made have been through Google Pay. Google Pay adoption for in-store payments in India was higher in 2023 than it was in early 2019, signalling a growing use among consumers. The numbers shown here refer to the share of respondents who indicated they used Google Pay in the last 12 months, either for POS transactions with a mobile device in stores and restaurants or for online shopping. Eight out of 10 respondents from India indicated they had used Google Pay in a POS setting between April 2022 and March 2023, with an additional seven out of 10 saying they used Google Pay during this same time for online payments.

Pertaining to the Indian spectrum, the following aspects should be kept into consideration: 

• PhonePe, Google Pay and Paytm accounted for nearly 96% of all UPI transactions by value in March
• PhonePe remained the top UPI app, processing 407.63 Cr transactions worth INR 7.07 Lakh Cr
• While Google Pay and Paytm retained second and third positions, respectively, Amazon Pay pushed CRED to the fifth spot in terms of the number of transactions
• Walmart-owned PhonePe, Google Pay and Paytm continued their dominance in India’s UPI payments space, together processing 94% of payments in March 2023.
• According to data from the National Payments Corporation of India (NPCI), the top three apps accounted for nearly 96% of all UPI transactions by value. This translates to about 841.91 Cr transactions worth INR 13.44 Lakh Cr between the three apps.

Conclusion

The big tech giant Google.org has been fundamental in creating and provisioning best-in-class services which are easily accessible to all the netizens. Satchel loans are the new services introduced by the platform and the widespread access of Gpay will go a long way in providing financial services and ease to the deprived and needy lot of the Indian population. This transition can also be seen by other payment portals like Paypal and Paytm, which clearly shows India's massive potential in leading the world of online banking and UPI transactions. As per stats, 40% of global online banking transactions take place in India. These aspects, coupled with the cores of Digital India and Make in India, clearly show how India is the global destination for investment in the current era.  

References

• https://www.livemint.com/companies/news/google-enters-retail-loan-business-in-india-11697697999246.html
• https://www.statista.com/statistics/1389649/google-pay-adoption-in-india/#:~:text=Eight%20out%20of%2010%20respondents,same%20time%20for%20online%20payments
• https://playtoday.co/blog/stats/google-pay-statistics/#:~:text=67%20million%20active%20users%20of%20Google%20Pay%20are%20in%20India.&text=Google%20Pay%20users%20in%20India,in%2Dstore%20and%20online%20purchases.
• https://inc42.com/buzz/phonepe-google-pay-paytm-process-94-of-upi-transactions-march-2023/

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Introduction

The scam involving "drugs in parcels' has resurfaced again with a new face. Cybercriminals impersonating and acting as FedEx, Police and various other authorities and in actuality, they are the perpetrators or bad actors behind the renewed "drugs in parcel" scam, which entails pressuring victims into sending money and divulging private information in order to escape fictitious legal repercussions. 

Modus operandi  

The modus operandi followed in this scam usually begins with a hacker calling someone on their cell phone posing as FedEx. They say that they are the recipients of a package under their name that includes illegal goods like jewellery, narcotics, or other items. The victim would feel afraid and apprehensive by now. Then there will be a video call with someone else who is posing as a police officer. The victim will be asked to keep the matter confidential while it is being investigated by this "fake officer."

After the call, they would get falsified paperwork from the CBI and RBI stating that an arrest warrant had been issued. Once the victim has fallen entirely under their sway, they would claim that the victim's Aadhaar has been used to carry out the unlawful conduct. They then request that the victim submit their bank account information and Aadhaar data for investigation. Subsequently, the hackers request that the victim transfer funds to a bank account for RBI validation. The victims thus submit money to the hackers believing it to be true for clearing their name.

Recent incidence:

In the most recent instance of a "drug-in-parcel" scam, an IT expert in Pune was defrauded of Rs 27.9 lakh by internet con artists acting as members of the Mumbai police's Cyber Crime Cell. The victim filed the First Information Report (FIR) in this matter at the police station. The victim stated that on November 11, 2023, the complainant received a call from a fraudster posing as a Mumbai police Cyber Crime Cell officer. The scammer falsely claimed to have discovered illegal narcotics in a package addressed to the complainant sent from Mumbai to Taiwan, along with an expired passport and an SBI card. To avoid arrest in a fabricated drug case, the fraudster coerced the complainant into providing bank account information under the guise of "verification." The victim, fearing legal consequences, transferred Rs 27,98,776 in ten online transactions to two separate bank accounts as instructed. Upon realizing the deception, the complainant reported the incident to the police, leading to an investigation.

In another such incident, the victim received an online bogus identity card from the scammers who had phoned him on the phone in October 2023. In an attempt to "clear the case" and issue a "no-objection certificate (NOC)," the fraudster persuaded the victim to wire money to a bank account, claiming to have seized narcotics in a shipment shipped from Mumbai to Thailand under his name. Fraudsters threatened to arrest the victim for mailing the narcotics package if money was not provided. 

Furthermore, In August 2023, fraudsters acting as police officers and executives of courier companies defrauded a 25-year-old advertising student of Rs 53 lakh. They extorted money from her under the guise of avoiding legal action, which would include arrest, and informed her that narcotics had been discovered in a package she had delivered to Taiwan. According to the police, callers acting as police officers threatened to arrest the girl and forced her to complete up to 34 transactions totalling Rs 53.63 lakh from her and her mother's bank accounts to different bank accounts.

Measures to protect oneself from such scams

Call Verification: 

• Be sure to always confirm the legitimacy of unexpected calls, particularly those purporting to be from law enforcement or delivery services. Make use of official contact information obtained from reliable sources to confirm the information presented.

Confidentiality:

• Use caution while disclosing personal information online or over the phone, particularly Aadhaar and bank account information. In general, legitimate authorities don't ask for private information in this way.

Official Documentation: 

• Request official documents via the appropriate means. Make sure that any documents—such as arrest warrants or other government documents—are authentic by getting in touch with the relevant authorities.

No Haste in Transactions: 

• Proceed with caution when responding hastily to requests for money or quick fixes. Creating a sense of urgency is a common tactic used by scammers to coerce victims into acting quickly.

Knowledge and Awareness: 

• Remain up to date on common fraud schemes and frauds. Keep up with the most recent strategies employed by online fraudsters to prevent falling for fresh scam iterations.

Report Suspicious Activity: 

• Notify the local police or other appropriate authorities of any suspicious calls or activities. Reports received in a timely manner can help investigations and shield others from falling for the same fraud.

2fA:

• Enable two-factor authentication (2FA) wherever you can to provide online accounts and transactions an additional degree of protection. This may lessen the chance of unwanted access.

Cybersecurity Software: 

• To defend against malware, phishing attempts, and other online risks, install and update reputable antivirus and anti-malware software on a regular basis.

Educate Friends and Family:

• Inform friends and family about typical scams and how to avoid falling victim to fraud. A safer online environment can be achieved through increased collective knowledge.

Be skeptical

• Whenever anything looks strange or too good to be true, it most often is. Trust your instincts. Prior to acting, follow your gut and confirm the information.

By taking these precautions and exercising caution, people may lessen their vulnerability to scams and safeguard their money and personal data from online fraudsters.

Conclusion:

Verifying calls, maintaining secrecy, checking official papers, transacting cautiously, and keeping up to date are all examples of protective measures for protecting ourselves from such scams. Using cybersecurity software, turning on two-factor authentication, and reporting suspicious activity are essential in stopping these types of frauds. Raising awareness and working together are essential to making the internet a safer place and resisting the activities of cybercriminals.

 References:

• https://indianexpress.com/article/cities/pune/pune-cybercrime-drug-in-parcel-cyber-scam-it-duping-9058298/#:~:text=In%20August%20this%20year%2C%20a,avoiding%20legal%20action%20including%20arrest.
• https://www.the420.in/pune-it-professional-duped-of-rs-27-9-lakh-in-drug-in-parcel-scam/
• https://www.newindianexpress.com/states/tamil-nadu/2023/oct/16/the-return-of-drugs-in-parcel-scam-2624323.html
• https://timesofindia.indiatimes.com/city/hyderabad/2-techies-fall-prey-to-drug-parcel-scam/articleshow/102786234.cms

Amid the popularity of OpenAI’s ChatGPT and Google’s announcement of introducing its own Artificial Intelligence chatbot called Bard, there has been much discussion over how such tools can impact India at a time when the country is aiming for an AI revolution.

During the Budget Session, Finance Minister Nirmala Sitharaman talked about AI, while her colleague, Minister of State (MoS) for Electronics and Information Technology Rajeev Chandrasekhar discussed it at the India Stack Developer Conference.

While Sitharaman stated that the government will establish three centres of excellence in AI in the country, Chandrashekhar at the event mentioned that India Stack, which includes digital solutions like Aadhaar, Digilocker and others, will become more sophisticated over time with the inclusion of AI.

As AI chatbots become the buzzword, News18 discusses with experts how such tech tools will impact India.

AI IN INDIA

Many experts believe that in a country like India, which is extremely diverse in nature and has a sizeable population, the introduction of technologies and their right adoption can bring a massive digital revolution.

For example, Manoj Gupta, Cofounder of Plotch.ai, a full-stack AI-enabled SaaS product, told News18 that Bard is still experimental and not open to everyone to use while ChatGPT is available and can be used to build applications on top of it.

He said: “Conversational chatbots are interesting since they have the potential to automate customer support and assisted buying in e-commerce. Even simple banking applications can be built that can use ChatGPT AI models to answer queries like bank balance, service requests etc.”

According to him, such tools could be extremely useful for people who are currently excluded from the digital economy due to language barriers.

Ashwini Vaishnaw, Union Minister for Communications, Electronics & IT, has also talked about using such tools to reduce communication issues. At World Economic Forum in Davos, he said: “We integrated our Bhashini language AI tool, which translates from one Indian language to another Indian language in real-time, spoken and text everything. We integrated that with ChatGPT and are seeing very good results.”

‘DOUBLE-EDGED SWORD’

Sundar Balasubramanian, Managing Director, India & SAARC, at Check Point Software, told News18 that generative AI like ChatGPT is a “double-edged sword”.

According to him, used in the right way, it can help developers write and fix code quicker, enable better chat services for companies, or even be a replacement for search engines, revolutionising the way people search for information.

“On the flip side, hackers are also leveraging ChatGPT to accelerate their bad acts and we have already seen examples of such exploitations. ChatGPT has lowered the bar for novice hackers to enter the field as they are able to learn quicker and hack better through asking the AI tool for answers,” he added.

Balasubramanian also stated that CPR has seen the quality of phishing emails improve tremendously over the past 3 months, making it increasingly difficult to discern between legitimate sources and a targeted phishing scam.

“Despite the emergence of the use of generative AI impacting cybercrime, Check Point is continually reminding organisations and individuals of the significance of being vigilant as ChatGPT and Codex become more mature, it can affect the threat landscape, for both good and bad,” he added.

While the real-life applications of ChatGPT include several things ranging from language translation to explaining tricky math problems, Balasubramanian said it can also be used for making the work of cyber researchers and developers more efficient.

“Generative AI or tools like ChatGPT can be used to detect potential threats by analysing large amounts of data and identifying patterns that may indicate malicious activity. This can help enterprises quickly identify and respond to a potential threat before it escalates to something more,” he added.

POSITIVE FACTORS

Major Vineet Kumar, Founder and Global President of CyberPeace Foundation, believes that the deployment of AI chatbots has proven to be highly beneficial in India, where a booming economy and increasing demand for efficient customer service have led to a surge in their use. According to him, both ChatGPT and Bard have the potential to bring significant positive change to various industries and individuals in India.

“ChatGPT has already made an impact by revolutionising customer service, providing instant and accurate support, and reducing wait time. It has automated tedious and complicated tasks for businesses and educational institutions, freeing up valuable time for more significant activities. In the education sector, ChatGPT has also improved learning experiences by providing quick and reliable information to students and educators,” he added.

He also said there are several possible positive impacts that the AI chatbots, ChatGPT and Bard, could have in India and these include improved customer experience, increased productivity, better access to information, improved healthcare, improved access to education and better financial services.

Reference Link : https://www.news18.com/news/explainers/confused-about-chatgpt-bard-experts-tell-news18-how-openai-googles-ai-chatbots-may-impact-india-7026277.html