Finmin Sitharaman Calls On Fintech Firms To Tackle“Digital Arrest” Scams & Cyberfraud

(MENAFN- KNN India) New Delhi, Jun 19 (KNN) At the Digital Payments Awards ceremony, Finance Minister Nirmala Sitharaman urged fintech companies to step up and address mounting threats such as“digital arrests,” cyber fraud, and emerging risks from deep‐fake technologies.

Sitharaman lauded fintech's role in democratising finance, noting that innovations like UPI have boosted inclusion, especially in remote regions.

However, she emphasised the flip side: opportunistic fraudsters are exploiting these same systems.

“People must not be digitally arrested at home, nor have their money stolen by fly‐by‐night operators,” she warned.

The FM also flagged deep‐fake technology as an escalating cyber‐threat, damaging public trust and demanding urgent fintech-led solutions.

She called for continuous innovation to counter these novel challenges, urging startups to create robust safeguards.

Sitharaman highlighted fintech's global ambitions: UPI transactions are now accepted in seven countries-including Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE-and she encouraged domestic firms to export their successful models abroad.

With the Indian fintech market set to reach USD 400 billion by 2028–29, growing at about 30 per cent annually, the opportunity is immense.

She noted that fintech has delivered significant social benefits: Rs 44 lakh crore has been disbursed through Direct Benefit Transfer since 2014, saving Rs 3.48 lakh crore in leakages.

At the event, Sitharaman also urged fintechs to expand digital lending to MSMEs, combining the strengths of“physical + digital” (“phygital”) finance to build trust.

She praised banks and fintechs for jointly driving India's digital finance revolution.

Sitharaman's message was clear: fintech must now not only innovate for growth but also actively safeguard users-especially the vulnerable-against sophisticated cyber threats.

(KNN Bureau)

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