In a significant move to combat digital fraud, the Indian government has suspended 70 lakh (7 million) mobile numbers due to suspicious transactions. Financial Services Secretary Vivek Joshi announced this decision following a high-level meeting focused on financial cyber security and the rise in digital payment fraud.
Key Details of the Government Action
- Suspension of Mobile Numbers: The government’s decision to suspend 70 lakh mobile numbers is aimed at curbing digital frauds. This measure was announced by Vivek Joshi, the Financial Services Secretary, indicating the government’s proactive stance against the increasing menace of digital fraud.
- High-Level Meeting on Cyber Security: The suspension of mobile numbers was one of the outcomes of a meeting dedicated to discussing financial cyber security and the growing challenge of digital payment fraud. Banks have been directed to strengthen their systems and processes to further bolster the fight against such fraudulent activities.
- Focus on Aadhaar Enabled Payment System (AEPS) and KYC Standardisation: The meeting also addressed the issues related to Aadhaar Enabled Payment System (AEPS) fraud. States have been asked to investigate and ensure data protection in this context. Additionally, there was a discussion about standardizing Know Your Customer (KYC) processes for merchants, which is vital for ensuring the authenticity and security of financial transactions.
- Coordination Among Various Agencies: The meeting, chaired by the Financial Services Secretary, emphasized the need for better coordination among various agencies to effectively tackle cyber fraud. Creating public awareness about cyber fraud was also identified as a key requirement to protect customers from being duped.
- Presentation by Indian Cyber Crime Co-ordination Centre: The Indian Cyber Crime Co-ordination Centre presented the latest statistics on digital payment frauds, as reported in the National Cyber Crime Reporting Portal (NCRP). The presentation highlighted the challenges and issues faced in countering digital frauds.
- Significance of the Meeting: The meeting’s importance is underscored by recent digital fraud incidents involving major banks like UCO Bank and Bank of Baroda. UCO Bank, in particular, experienced an erroneous credit of Rs 820 crore due to technical issues in the Immediate Payment Service (IMPS), leading to unintended credits to account holders without actual receipt of money from other banks. The bank has managed to recover a significant portion of the mistakenly credited funds and is investigating whether the glitch was due to human error or a hacking attempt.
Conclusion
The Indian government’s decision to suspend 70 lakh mobile numbers is a clear indication of its commitment to tackling digital fraud and enhancing cyber security. By focusing on issues such as AEPS fraud, KYC standardization, and coordination among various agencies, the government is taking comprehensive steps to safeguard the financial ecosystem against cyber threats. This move, along with continuous efforts to improve digital payment security, is crucial in building a more secure and reliable digital financial environment in India.