Govt Considers Insurance Cover For Fraudulent Digital Transaction

by CXOtoday News Desk    Jul 24, 2017

Digital payment

Digital payment security is now being seriously considered by the government after the recommendations from the Chandrababu Naidu committee, as per an IANS report.

The recommendations include insurance cover for the victims of fraudulent transactions, IANS quoted a union minister as saying.  

Technology minister Ravi Shankar Prasad told the Rajya Sabha that India has seen a rise in digital transactions and this is the concern for their security.

“The government is very seriously considering the recommendations made by the Chandrababu Naidu committee. And I am in principle for it ( the idea of insurance),” Prasad said. 

The committee of Chief Ministers on digital payment which is chaired by Chief Minister of Andhra Pradesh N. Chandrababu Naidu, in its interim report has made certain suggestion including measures for digital payment security like insurance scheme to cover losses in digital transactions due to fraud etc.

The report notes that to provide assurance to the general public in adopting digital payments, the scheme should transactions of lower value to cover vulnerable sections like farmers, small merchants etc.

Prasad said the amount of fraud digital transactions is low as compared to the overall digital transactions and the government is taking steps to restrict those frauds.

“Around 1,200 crore digital transactions take place annually in the country. Of these, between 0.005 per cent and 0.007 per cent are fraudulent transactions,” he said. 

According to the data presented by the minister before the House, the number of cases involving credit cards, ATM/debit cards and Internet banking during 2015-16 was 16,468 and in 2016-17 it was 13,653. 

As per the data for March, April and May 2017, the number of fraudulent transactions is between 0.005 per cent and 0.007 per cent of the total number of transactions. “As per incidents reported to the Indian Computer Emergency Response Team (CERT-In), 40 phishing incidents affecting 19 financial organizations and 10 incidents affecting ATMs, Point of Sale (POS) systems and Unified Payment Interface (UPI) have been reported during November 2016 to June 2017,” Prasad said.  “As part of the promotion of digital payments, the government is taking several steps to ensure that frauds are minimized and even when an incident of this nature takes place, corrective action is immediately taken,” he added.