In this digital age, where the world seems to run at the speed of fingertips, even the neighbourhood vegetable vendor has joined the technological wave. As you leisurely stroll through the market, captivated by a product but suddenly realise you forgot your wallet at home, no worries – all you need is your mobile phone. A swift scan of a simple QR code seamlessly dispatches your payment directly into the seller’s bank account.
The digital wave reached Kashmir in 2017 and picked up pace in 2021, when high-speed internet was restored after a 20-month hiatus post the abrogation of Article 370.
Mohammad Shafi, 45, a shopkeeper said, “A number of customers would leave my shop without shopping as I was not accepting payments through online methods. Many customers would ask for the online transaction method and would leave the shop as I was only accepting cash.”
“My shop was somewhat losing out to other shops that were accepting online transactions. But then I thought why not get with the times? Placed a QR code on my shop, started taking online money, and suddenly, more customers than before,” he added.
In 2023, India witnessed a staggering 9,192 crore transactions, amounting to a total value of ₹2,050 lakh crore. Among these transactions, a significant 8,572 crores were conducted through the Unified Payments Interface (UPI), which is used by 30 crore individuals and 5 crore merchants, according to Union Minister of State for Finance, Dr. Bhagwat Karad, in Lok Sabha.
In the financial year 2016, 5% of vendors used online payment platforms, which increased to 15% in FY2021 and 20% in FY2022, reports Kashmir Observer.
Waseem Ahmad, a 25-year-old local, said, “Initially I was facing tremendous challenges since whenever I went shopping, I needed to visit ATMs to withdraw cash in order to purchase anything.”
“As the trend of QR scanners has come to market and even at all vendor stalls, it has made it easier to just buy any commodity by just scanning the code,” he said.
“So I believe the installation of these scanners has totally made it easy out for everyone in this digital age,” he added.
However, the convenience of online payments also brings the risk of falling victim to scams and frauds. Whether it’s a UPI fraud, a banking scam, or a deceptive scheme promising online money, scammers are always finding new ways to trick people.
Afzal Ahmad, with a wrinkled face and white beard, leaves home every morning with his four-wheeler Sumo to support himself and his family. A few weeks ago, he took passengers from Bandipora to Srinagar in his vehicle with high hopes, as Ahmad always remains content during long trips because he primarily operates within local destinations in the district.
Speaking to Kashmir Leader, Ahmad recounted, “I switched my music system to an eternal Sufi Qalam, taking joy in listening deeply as I drove toward my final destination. However, I was unaware that I would be scammed.”
“I had started using scanners on my vehicle mirror and another inside months ago. I kept receiving payments through them, which I believed was functioning pretty well. But I had no idea what would happen to me that day.”
Ahmad explained, “Two young people who appeared to be well-educated scanned the QR code and informed me that the payment had been made. They even showed me a screenshot, and I was satisfied. Unfortunately, later on, when I checked my messages, nothing was there. I even sent my friend to the concerned bank to check my balance, and sadly, there was nothing either.”
He remembers that day as shocking and advises people to be cautious. “Although it was not a significant amount, it might be a lot of money for someone tomorrow. Before they fall for any sort of fraud, they should be alert. Today it was me; tomorrow, it could be you.”
As per the RBI Annual Report 2022-23, banks experienced the highest number of fraudulent transactions in the digital payment category in the fiscal year 2022–2023.
Digital payment fraud in India has witnessed a staggering surge, jumping more than fivefold to a record 14.57 billion rupees ($175 million) in the fiscal year ending March 2024, according to the Reserve Bank of India’s (RBI) annual report
Tahir Ahmad, a 29-year-old auto-rickshaw driver, shared a similar experience. “I received a phone call to transport a load to a specific location. Upon reaching the vicinity, they called again, instructing me to transfer Rs. 1, assuring reimbursement for the items carried in my auto. However, upon transferring Rs. 1, an unexpected amount of Rs. 32,000 was debited from my account.”
“Upon attempting to call back, the phone was off, and upon reaching the location they provided, it was eerily empty. There, I realised I had fallen for a scam. What puzzles me is how they knew that I am an auto driver and the location they mentioned was familiar,” he said.
Instances like Ahmad’s aren’t isolated. Recently, the Cyber Police in Kashmir cracked a high-profile digital fraud case where a senior citizen was duped of ₹21 lakh by scammers impersonating officials from the Telecom Regulatory Authority of India (TRAI) and a central investigative agency.
According to SSP Srinagar, Imtiyaz Hussain, the accused psychologically manipulated the victim, leading to substantial financial loss. While ₹4 lakh was recovered, the incident underscores the need for increased awareness and vigilance among digital payment users.
According to data from FY2023, there were 13,530 fraud cases in the banking system totaling Rs 30,252 crore. Of these, 6,659 cases, or nearly 49 per cent, fell into the category of digital payments using cards or the internet.
Firdous Ahmad, a 50-year-old barbeque vendor, revealed a concerning trend where some customers present fake payment screenshots, claiming to have paid the bill online, while in reality, they haven’t.
“I initially trusted them as I don’t have much knowledge about technology. However, after falling victim to this several times, a customer suggested that I should install a speaker system to receive real-time notifications about legitimate payments, and after that, no such scam happened to me,” he added.
