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India’s financial data at risk: 17% store passwords insecurely, 53% face fraud
A recent survey by LocalCircles has exposed significant vulnerabilities in India’s financial data security, highlighting a widespread problem of insecure practices among citizens.
The findings reveal that 17% 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 found that 34% of respondents admitted to sharing their financial passwords with others, especially family members. This 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 whopping 53% of respondents reported that they or someone in their family had experienced financial fraud in the last five years. The most common types of fraud included credit/debit card fraud, UPI fraud and bank account fraud.
Compounding the problem is the widespread sharing of personal identification documents. The survey found that 97% of respondents shared their Aadhaar card, 68% their PAN card and 38% their driving license across multiple apps 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 Reserve Bank of India (RBI) has reported a 300% increase in banking frauds and a 708% increase in digital frauds in the last two years. Despite these alarming statistics, the survey revealed that six out of ten incidents of financial fraud go unreported, with nine out of ten cases of minor fraud (involving less than INR 1000) never reaching the authorities.