As India gears up for its vibrant festive season, starting with Onam in mid-September and continuing through Diwali, there’s an air of excitement and anticipation. This period traditionally marks a time of celebration and increased consumer spending across various sectors. The Indian festive season has long been synonymous with shopping and gifting. From automobiles to consumer goods and food items, Indian households splurge during this period.
The festive season market in India presents a unique landscape where tradition meets innovation. On the one hand, streets burst with vibrant colors, with retailers displaying clothes, food items, and more. On the other hand, e-commerce platform brands stand poised to capitalize on the increased spending patterns that cut across all sections of society.
Festive season and online market
The market trend during the festive season extends far beyond mere sales figures. A survey by Meesho highlights that over 60% of mass consumers plan to increase their online shopping budget this festive season. This shift in consumer behavior perfectly matches the seller preparation, with 65% of vendors gearing up for the festive period by launching new products.
As the lines between physical and digital retail continue to blur, the festive season in India emerges as a ground for innovative marketing strategies and seamless shopping experiences. However, amidst the festivities, a growing concern looms large: the rise of digital fraud in fintech platforms. The rapid growth of e-commerce, coupled with the widespread adoption of digital payment solutions like the Unified Payments Interface (UPI), has revolutionized consumer purchasing behavior and increased the possibility of financial fraud.
Ways to Prevent Digital Fraud
India’s digital payment landscape has witnessed exponential growth, with transactions soaring from INR 2,071 crore in FY 2017-18 to INR 18,592 crore in FY 2023-24, marking a 44% CAGR. However, this digital boom has been accompanied by an alarming surge in cybercrime. In just the first four months of 2024, over 7.4 lakh cybercrime complaints were registered, resulting in losses exceeding Rs 1,750 crore. May 2024 alone saw an average of 7,000 daily cybercrime reports, with financial frauds accounting for 85% of cases.
As online transactions peak, fintech platforms become more vulnerable to sophisticated fraud attempts. Let’s take a look at some ways to mitigate this growing threat.
Behavioural Analysis: With the help of AI and machine learning, businesses can detect anomalies in user patterns, flagging potential fraud attempts before they materialize.
Multi-Factor Authentication (MFA): By adding MFA, businesses can add robust layers of security to thwart unauthorized access, even if passwords are compromised. This might include a password, a fingerprint, a one-time code sent to their phone, or biometric data.
Real-time Transaction Monitoring: Advanced fraud prevention systems vigilantly oversee transactions in real-time and track unusual or suspicious activity.
Continuous System Updates: Just like fraudsters keep themselves updated on the ways to commit cybercrimes, businesses must update themselves with the latest threat intelligence and patterns to stay ahead of cybercriminals.
The Way Forward
With the festive season approaching rapidly, businesses and consumers must be vigilant about digital transactions. Fintech platforms must invest in robust fraud prevention systems and educate their users about potential risks. Consumers, in turn, should be aware of common fraud tactics and take necessary precautions while making online transactions. By combining advanced technology with user awareness, you can work towards a safer digital ecosystem.