Published Online:September 2025
Product Name:The IUP Journal of Information Technology
Product Type:Article
Product Code:IJIT040925
DOI:10.71329/IUPJIT/2025.21.3.59-70
Author Name:Mamta Hindocha
Availability:YES
Subject/Domain:Engineering
Download Format:PDF
Pages:59-70
The increasing use of digital platforms like UPI and net banking has also led to the risk of cyber threats like hacking, phishing, OTP scams, etc. The present study focuses on the digital transformation of India’s banking system, which has brought about not only many benefits but also cybersecurity challenges. The study used a questionnaire via Google Forms to gather data from 153 individuals using convenient sampling method. The secondary data regarding financial frauds in India was collected from RBI website from 2004-2005 to 2023-2024. Associations between financial frauds and demographic and awareness variables were checked. The findings showed significant associations between financial fraud exposure and factors like age, profession, transaction preference, knowledge about financial frauds and awareness of cyber crime cells. The number and amount of frauds increased significantly during 2014-2024 compared to 2004-2014. The paper concludes that digital banking has increased convenience on the one hand and cybersecurity risks on the other. Ultimately, keeping a balance between ease of transactions and strong security measures is essential for the success of digital banking systems.
In India, the banking system has been revamped keeping up with the times. People are stuck up with increased work pressure and less time availability. The government has also promoted digitalization as it is the need of the hour. Due to the availability of UPI and net banking, it has become easy and convenient to transact 24/7. With an increase in competitiveness and government promotion, all banks are bound to implement digitalization. Increase in facilities has also increased the risk factors such as hacking of bank account, digital frauds, OTP scams, etc.