A Study On Developing AI Powered Fraud Detection Awareness for UPI Transactions in India

A Study on Developing AI-Powered Fraud Detection Awareness for UPI Transactions in India As digital payments increasingly integrate into daily life in India, the Unified Payments Interface (UPI) has become the most popular and reliable platform for quick and smooth transactions. Nevertheless, this rapid growth in usage has heightened the risk of digital fraud, especially among users who may not be aware of cyber threats. UPI users are often targeted by fake links, modified QR codes, phishing scams, and remote-access fraud, frequently leading to financial losses before they even realize that a transaction has been fraudulent. This research aims to create an AI-based awareness model that not only identifies suspicious patterns in UPI transactions in real time but also educates users when they are at risk. A sequential mixed-method approach was utilized, incorporating survey feedback from UPI users and interviews with professionals in banking and cybersecurity. The results informed the development of a framework in which AI identifies anomalies through behavioral and transactional signals while simultaneously delivering warning messages and multilingual safety advice to thwart fraud. The objective of this study is to show that combining AI-powered fraud detection with effective user education can improve digital financial security, bolster user confidence, enhance fraud prevention efforts, and contribute to creating a safe and financially inclusive digital ecosystem in India.