ACI Worldwide: APP Scam Losses in India to Reach INR 49,626 Million by 2028

The rapid adoption of real-time payments in India, facilitated by initiatives like Unified Payments Interface (UPI), has led to a surge in authorized push payment (APP) scam losses. According to ACI Worldwide's Scamscope report, these losses are projected to reach INR 49,626 million by 2028. The immediacy of real-time transactions enables scammers to steal funds before they can be traced, driving growth in real-time payment APP scams. The report highlights that India's real-time payment APP scam losses hit INR 33,230 million in 2023, contributing to 89% of overall APP scam losses. To combat this, India is taking proactive steps, such as the Sanchar Saathi portal, to empower users and report fraud. However, the fight against APP scams remains ongoing, and financial institutions must act quickly to protect customers and restore confidence.

AI-driven fraud management systems can significantly enhance India's fight against APP scams. By analyzing transaction data, flagging anomalies, and facilitating real-time collaboration with other banks, these systems can help detect and prevent scams more effectively. As scammers increasingly use AI to boost inherited trust and automate social engineering techniques, AI-driven fraud management systems become crucial for maintaining a competitive edge in the battle against APP scams.

Financial institutions can enhance real-time fraud detection and prevention by adopting a multi-layered approach. Firstly, they should invest in advanced AI-driven fraud management systems that can analyze transaction data, flag anomalies, and facilitate real-time collaboration with other banks. Secondly, they should foster cross-border collaboration and break down silos to dismantle mule networks and better protect consumers. Lastly, they should educate customers about the risks and define liability in a way that is fair to all parties, making APP scams easier to spot and reducing victimization.

Regulators can foster cross-industry collaboration and intelligence sharing to dismantle mule networks by implementing a coordinated, multi-stakeholder approach. This includes encouraging information exchange between financial institutions, law enforcement agencies, and technology companies. By breaking down silos and sharing precise, real-time intelligence, mule networks can be more effectively targeted and disrupted. Additionally, regulators can promote the adoption of AI-driven fraud management systems to analyze transaction data, flag anomalies, and facilitate real-time collaboration. This will help strengthen defenses against real-time payment APP scams and better protect consumers.

In conclusion, the rise in APP scam losses in India, driven by the rapid adoption of real-time payments, underscores the urgent need for financial institutions and regulators to collaborate and implement robust fraud prevention measures. By leveraging AI-driven fraud management systems, fostering cross-border collaboration, and educating customers, India can effectively combat APP scams and maintain consumer trust in real-time payment systems.