Indian financial data at risk: 17pc store passwords unsafe, 53pc face fraud
New Delhi: The Indian treasury commonly known as Reserve Bank of India (RBI) has reported a over 300 per cent increase in bank frauds and a 708 per cent surge in digital frauds over the past two years.
The Kashmir Media Servioce has reported that the in a recent survey by LocalCircles has exposed significant vulnerabilities in India’s financial data security, highlighting a widespread issue of unsafe practices among citizens.
The findings reveal that 17 per cent of Indians store their financial passwords on their mobile devices in easily accessible locations such as notes or contact lists. This practice makes them highly susceptible to data theft and financial fraud.
In addition to poor storage habits, the survey indicates that 34 per cent of respondents admit to sharing their financial passwords with others, primarily family members. Such behavior further increases the risk of unauthorized access and potential misuse of sensitive information.
The LocalCircles survey, which gathered responses from over 48,000 citizens across 367 districts, also brought to light the extent of financial fraud in the country. A staggering 53 per cent of participants reported that they or someone in their family had experienced financial fraud in the past five years. The most common types of fraud included credit/debit card fraud, UPI fraud, and bank account fraud.
Compounding the issue is the widespread sharing of personal identification documents. The survey found that 97 per cent of respondents had shared their Aadhaar card, 68 per cent their PAN card, and 38 per cent their driving license for various applications and bookings. This practice makes personal data more vulnerable to theft and misuse, especially in the absence of robust data protection laws in India.
The RBI has reported a 300 per cent rise in bank frauds and a 708 per cent surge in digital frauds over the past two years. Despite these alarming statistics, the survey revealed that six out of ten financial fraud incidents go unreported, with nine out of ten minor fraud cases (involving less than INR 1000) never reaching the authorities.
