India’s digital payments ecosystem has transformed the way millions transact, accelerating financial inclusion and reshaping the country’s digital economy. However, the rapid scale of digital payments has also expanded the cyber fraud landscape, with scams becoming increasingly organised, psychologically sophisticated, and technologically enabled.
This policy report examines the evolving nature of cyber fraud in India, from digital arrest scams and investment frauds to mule account networks and AI-enabled deception. It analyses the structural gaps in prevention, detection, and grievance redressal, while assessing the institutional and regulatory responses emerging across India’s digital payments ecosystem.
Developed by The Dialogue in collaboration with the Centre for Information Communication Technology and Law (CICTL), Maharashtra National Law University Mumbai (MNLU Mumbai), and supported by Mastercard, the report argues for a more coordinated and intelligence-driven approach to fraud prevention and response.
What the Report Examines
- India’s evolving cyber fraud ecosystem and scam typologies
- The psychological and technological infrastructure behind modern fraud
- Institutional and regulatory responses across the payments ecosystem
- Structural gaps in fraud prevention and redressal
- Policy and governance recommendations for safer digital payment systems
Why This Matters
As digital payments become central to everyday life, trust remains the foundation of India’s digital financial ecosystem. Strengthening fraud prevention, response systems, and user safeguards will be critical to ensuring that the benefits of digital finance are not undermined by rising cybercrime.
– How can India strengthen trust in digital payments at scale?
– What institutional reforms are needed to respond to increasingly sophisticated fraud networks?
Author
𝐑𝐚𝐮𝐧𝐚𝐪 𝐒𝐡𝐚𝐫𝐦𝐚
Senior Research Associate, The Dialogue
Contributors
𝐀𝐚𝐬𝐭𝐡𝐚 𝐓𝐢𝐰𝐚𝐫𝐢
Assistant Professor of Law, Maharashtra National Law University (MNLU), Mumbai
𝐒𝐨𝐡𝐚𝐦 𝐉𝐚𝐠𝐭𝐚𝐩
Senior Research Associate, The Dialogue
𝐊𝐫𝐢𝐭𝐢 𝐒𝐢𝐧𝐠𝐡
Associate Director – Programmes and Operations, The Dialogue
𝐑𝐚𝐧𝐣𝐞𝐞𝐭 𝐑𝐚𝐧𝐞
Organisational Partner and Lead of Fintech & Sustainable Finance, The Dialogue
