New Delhi: In a bid to curb digital payment fraud, the Indian government has taken action by suspending a staggering 70 lakh mobile numbers associated with suspicious transactions, as confirmed by Financial Services Secretary Vivek Joshi on Tuesday.

The decision emerged from a meeting dedicated to addressing issues pertaining to financial cybersecurity and the surge in digital payment fraud. Joshi emphasized the directive for banks to fortify their systems and processes in response to these challenges. He also announced plans for subsequent meetings on this matter, with the next one slated for January.

Concerning Aadhaar Enabled Payment System (AEPS) fraud, states have been urged to investigate and ensure stringent data protection measures. Additionally, discussions centered on standardizing the Know Your Customer (KYC) protocols for merchants.

The meeting, chaired by the Financial Services Secretary, extensively deliberated on strategies for enhancing coordination among various agencies to combat cyber fraud. Joshi stressed the necessity of raising awareness about cybercrime in society to shield unsuspecting customers from falling victim to deceitful practices.

The Indian Cyber Crime Co-ordination Centre presented the latest statistics on digital payment fraud, sourced from the National Cyber Crime Reporting Portal (NCRP). The presentation included insights into the challenges encountered in countering these fraudulent activities.

Attended by senior officials from the Department of Economic Affairs, Department of Revenue, Department of Telecom, Ministry of Electronics and Information Technology (MeitY), Telecom Regulatory Authority of India, and National Payments Corporation of India, the meeting holds significance, especially in light of recent digital fraud incidents involving UCO Bank and Bank of Baroda.

UCO Bank Incident:
Earlier this month, UCO Bank, a Kolkata-based public sector lender, reported an erroneous credit of Rs 820 crore to its account holders through the Immediate Payment Service (IMPS).

Between November 10 and 13, the bank identified technical glitches within IMPS, resulting in certain transactions initiated by account holders from other banks leading to wrongful credits in UCO Bank accounts, despite no actual transfer of funds.

IMPS operates as a real-time interbank electronic funds transfer system without intermediaries.

The bank took prompt action by freezing the recipients’ accounts and has successfully recovered Rs 649 crore, approximately 79% of the total amount erroneously credited.

While UCO Bank has yet to specify whether the technical error resulted from human oversight or a hacking attempt, the matter has been reported to law enforcement agencies for necessary investigations and actions.

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