DIGITAL PAYMENTS AND FRAUD CONNECTION: INSIGHTS FROM THE INDIAN ECONOMY

In the dynamic world of digital transactions in India, the symbiotic relationship between convenience and vulnerability has become increasingly apparent. This study aims to know how digital payment and fraud connect in Indian economy. The primary objective of this study is to know the relationship between financial fraud with digital payment infrastructures, value of digital payments, and volume of digital payment. The data is collected through RBI’s official quarterly reports from September 2022 to May 2023. The collected time series data for all the variables has been analyzed for descriptive statistics. These series were tested for stationarity using Augmented Dickey–Fuller test (ADF - unit root test), Correlogram, and time series chart. The correlation and regression analysis has been performed on this time series data using SPSS and EViews software. From the correlation results this study reveals that there is no significant correlation between value and volume of fraud with payment infrastructure, value of digital payment, and volume of digital payment. The value of UPI transactions has a significant negative impact on digital payment fraud, indicating a potential protective effect.