Small-ticket UPI frauds are underreported because users often dismiss minor losses as insignificant or unavoidable. Many users lack awareness about how to report such fraud or fear the process might be clumsy. This underreporting makes it difficult for authorities to track fraudulent trends and implement preventive measures effectively.
The cumulative effect of these small-ticket frauds is significant, costing the economy and undermining trust in UPI systems. When cases go unreported, fraudsters face little resistance, emboldening them to exploit more users. Addressing this challenge requires efficient reporting mechanisms and increased user awareness campaigns to put to light the importance of reporting every fraud, no matter the size.
