Indian consumers have taken to digital banking in a big way, but they are also among the biggest victims of banking frauds, shows a new report released by payments company FIS. The report, surveying people across multiple countries, found that 18 per cent of Indian customers reported a fraud in the past year – more than any other country surveyed by the organisation.
These frauds occur across all ages and correlate with the frequency of usage of digital banking by different age groups, according to the report. For instance, the age group most affected by frauds is 27-37 years. These people also happen to be the most prolific in using digital banking apps. One of every four people in this age group reported a fraud, said business-standard.
By comparison, only 6 per cent consumers in Germany and 8 per cent in the UK reported banking frauds, while those in the US were twice as likely to switch their banks after a fraud as non-victims.
“This is higher than any other country included in this year’s PACE research. Fraud prevention and account security should be the top priority – yes, ahead of digital banking rollout – for banks in India.
They must stem the tide of widespread security breaches and fraud, and protect their customers first and foremost,” the report stated.