As the world becomes more digitally connected, more people are now susceptible to malicious attacks by actors and organisations who are more organised and innovative in their fraudulent ways.
The Unified Payments Interface (UPI) has emerged as a game-changer in digital inclusion and garnering global attention. Unfortunately, UPI has also become a potent tool for cheats and fraudsters to target unsuspecting victims.
According to a report by Praxis Global Alliance, in collaboration with Bureau, a no-code platform that assesses digital identity trustworthiness, over 55 per cent of all digital frauds are related to UPI transactions. A Netflix series on Jamtara, Jharkhand, is notorious for its involvement in such illicit activities. As Digital India expands, are we prepared to confront the growing threats and attacks?
With the digital revolution, the e-commerce sector has become integral to the digital payments ecosystem. The projections for the digital markets, even in this challenging economic environment, are undeniably promising.
This is excellent news for sellers and Micro, Small and Medium Enterprises (MSMEs) who form the backbone of Indian economy. But some unscrupulous individuals are bound to exploit the system.
But the proliferation of fake reviews and ratings in digital markets poses a significant threat to sellers, platforms and consumers alike. Reviews and ratings form the very foundation of trust in e-commerce, something that significantly influences purchasing decisions online. Fraudsters exploit this established trust by manipulating reviews in exchange for payments or rewards, compromising the integrity of the entire ecosystem.
Despite substantial investments by industry leaders to combat this issue, these fraudulent operations known as “review farms” persistently evade detection and continue to exert their influence. Effectively addressing this pervasive problem necessitates a comprehensive and collaborative approach.
In the digital era, seemingly harmless actions can have far-reaching consequences, posing formidable challenges across sectors. The influence of online testimonials on businesses, either bolstering or undermining, should not be underestimated. These operators use disinformation tactics, causing tangible harm. Their origins may be linked to the propagation of fake news, where bad actors exploited social media platforms and communication channels to disseminate misleading information for malicious purposes. They could potentially target a new industry to disrupt.
The convergence of India’s digital revolution and the escalating threat of fraudulent activities demands coordinated action. A prominent e-commerce platform is collaborating with Uttar Pradesh Police through its Mission GraHAQ to combat online shopping scams. Such partnerships will allow online platforms and law enforcement agencies to gain vital insights, leading to a more effective crackdown on these modern-day criminals.
However, addressing the issue goes beyond law enforcement alone. Regulators must also step in and implement pre-emptive regulations, enabling enforcement agencies to effectively target and stop these fraudsters in their tracks.
Despite fake news peddlers and UPI fraudsters being on the radar of the regulators, the situation continues to remain critical. Review brokers are currently enjoying a highly advantageous position as they manage to evade regulatory oversight, even as digital markets experience rapid growth.
Regulators must prioritise resolution of these gaps and take swift measures. It is crucial for the law to classify review brokers as criminal fraudsters and impose stiff punishments.
Safeguarding integrity of the digital space is a collective responsibility. By promptly addressing the issue of fraudulent reviews, fostering robust collaboration with law enforcement agencies, the country can pave the way for a secure digital ecosystem.
The writer is IPS (Retired), Former Director General of Police, A&N Islands and Special Commissioner of Police, Delhi
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