New Delhi, June 27
In a significant move to bolster digital payment security, the Central Government is working closely with leading third-party UPI app providers (TPAPs) such as Google Pay, PhonePe, and Paytm to implement advanced fraud detection and prevention measures aimed at combating real-time transaction fraud.
According to reports, the collaborative effort seeks to address the growing threat of fraudulent peer-to-peer (P2P) and person-to-business (P2B) transactions, especially those targeting users with limited digital literacy. The government is currently piloting several safety features that could be integrated into UPI platforms to ensure safer digital payment experiences.
To enhance transaction security, these apps may soon introduce short delays, issue real-time fraud alerts, and prompt users for additional confirmations on suspicious transactions. These steps, while adding a few seconds to the transaction time, are expected to significantly reduce risks of digital payment fraud.
“We are leveraging multiple data signals to identify potentially fraudulent behavior. While it is still in the early stages, we are optimistic about developing a robust solution to curb UPI-based scams,”
said an official from the Ministry of Electronics and IT (MeitY).
TPAP platforms have reportedly adopted a risk-based approach, classifying users into financial risk categories — medium, high, and very high — based on their transaction behavior. Depending on the risk level, transactions may be flagged, delayed, or blocked entirely.
A senior executive from one of the TPAPs confirmed, “With the support of artificial intelligence, we have been able to identify several patterns and signals that help flag risky transactions in real time.”
This proactive step is part of a broader national effort to ensure digital payment systems remain secure, trustworthy, and accessible for all users, particularly as UPI continues to grow as a preferred mode of transaction across India.
