Online payment frauds are rising sharply as India's digital payments infrastructure helps millions of users make transactions faster and more conveniently. However, this growth is coming at a significant cost - a rising risk of fraud. Online frauds are no longer simply a matter of reducing the number of fraud cases; they have evolved into an organised network threatening the entire online payment ecosystem.

Key Highlights

• Online payment frauds surged 4x to Rs 48,021 crore in FY26, up from Rs 12,230 crore in FY24.
• Authorised Push Payment fraud is the hardest to manage, with 58% of organisations finding it challenging.

Global data and technology company Experian on Wednesday launched its latest fraud insights report, "The New Frontier: Emerging Trends in Fraud Prevention." The report finds that while the number of fraud cases has reduced noticeably in recent years, the value associated with scams has increased sharply.

The amount involved in suspected fraudulent applications has grown 4x, from Rs 12,230 crore in FY24 to Rs 48,021 crore in FY26.

What Factors Are Fuelling the Surge in Fraud Attacks?

Several factors are driving the surge in online scams against users. The report finds that account takeover emerges as the most widespread threat, with 77% of respondents reporting an increase, indicating growing vulnerability in digital access and authentication layers.

Money muling and identity theft are close behind, at 71% each, highlighting the rise of organised, network-driven fraud that leverages both stolen identities and intermediary accounts.

Synthetic business fraud and first-party fraud show the highest proportion of respondents reporting a "significant increase," at 39%, suggesting a broader shift toward more deliberate, high-impact fraud schemes such as online investment scam networks.

Which Fraud Types Are Hardest to Detect and Prevent?

The report also analysed which types of fraud are most difficult to detect and prevent. It finds that Authorised Push Payment (APP) fraud is the most challenging threat, with 58% of organisations finding it difficult to manage.

In APP fraud, scammers trick victims into willingly authorising a payment to a fraudulent account. The victim initiates the transaction themselves, often after being deceived through phishing, impersonation, or fake investment schemes resembling an online trading scam.

Beyond this, identity theft and money mule activity remain persistent challenges, cited by 54% and 53% of respondents respectively, reinforcing the role of organised fraud networks and compromised identities in driving overall risk.

A broad range of fraud types - including first-party fraud, synthetic identities and deepfakes - were flagged as consistently challenging by 52% of respondents, indicating that fraud risk is diversifying rather than concentrating within a single category.

The findings highlight that organisations face a wide spectrum of fraud threats, with several types proving particularly difficult to detect and prevent. Notably, a substantial share of respondents classified these threats as "very challenging," reflecting the increasing sophistication of fraud tactics.

What Are the Barriers to Fraud Prevention?

The report also flags several issues limiting financial institutions' ability to prevent and respond to fraud when it occurs. Agility emerged as the biggest challenge, with 48% of organisations struggling to rapidly update fraud models and rules.

Data and technology limitations also remain key barriers, particularly a lack of device data (47%) and real-time monitoring capabilities (44%), which restrict early detection of sophisticated fraud attempts.

Operational inefficiencies and model performance issues persist as well, with manual reviews (43%) and high false-positive rates (42%) impacting cost, speed and revenue - pointing to a broader need for more automated and precise decisioning systems.

Also Read: India Becoming A Hotspot for Digital Arrest Scams in 2025

Experian Highlights Need for Stronger Data and Intelligence

Manish Jain, Country Managing Director of Experian in India, said the ability to identify genuine opportunities while detecting emerging risks early will be a critical differentiator in an increasingly digital market. He added that organisations combining data, analytics and broader intelligence will be better positioned to protect customers, strengthen operational resilience and support sustainable growth.