RBI: India’s central bank steps up fight against digital fraud

In February, Alok (name changed), a business analyst based in the western Indian city of Pune, got a text message asking him to pay 1,000 rupees ($10.75; £7.9) as a speeding fine. The message asked him to settle the amount quickly to avoid his driving licence being suspended, prompting Alok to immediately click on the link to pay. He was asked to share an OTP (one-time password) to complete the payment. Minutes later, his credit card was charged $3,225, the maximum transaction limit. Alok had inadvertently authorised a much larger sum than what was supposed to be the fine, falling prey to a common scam in India where fraudsters send fake messages mimicking official websites that direct unsuspecting individuals to phishing links and drain their bank accounts. Experts call this a type of fraud "social engineering" - where scammers dupe their victims using psychological manipulation, instilling fear and urgency. India has seen an alarming rise in such fraud with the unprecedented adoption of digital payments in the country over the last half decade. Nearly 2.5 million people have lost some $2.5bn in 2025, a staggering 4,300% rise since 2021. The explosive jump in cases has finally pro