India’s digital fraud rate nearly doubles global average: Report

MUMBAI: For cybercriminals, the front door is passé, they’re increasingly trying the spare key. India’s battle against digital fraud is intensifying, with suspected fraudulent transactions occurring at nearly twice the global average rate, according to TransUnion’s H1 2026 Top Fraud Trends Report.

The report found that 7.1 per cent of all attempted digital transactions involving Indian consumers in 2025 were flagged as suspected fraud, significantly higher than the global average of 3.8 per cent. The findings highlight how cybercriminals are becoming more sophisticated, shifting their focus from direct financial fraud to identity-driven attacks that target users across the digital journey.

Unlike global markets, where account creation remains the most vulnerable stage, India’s biggest fraud risk now lies at login. According to the report, 3.9 per cent of account login attempts were suspected to be fraudulent in 2025, compared with 3.1 per cent for account creation and 1.2 per cent for financial transactions. The trend points to growing attempts by fraudsters to gain access to existing accounts using stolen or compromised credentials.

The threat landscape is evolving rapidly as attackers increasingly exploit identity gaps rather than transaction loopholes. As digital services become more deeply embedded in everyday life, criminals are finding new ways to blend into legitimate user behaviour before striking.

Sector-wise, logistics emerged as the most exposed industry, recording a suspected fraud rate of 16.3 per cent. Telecommunications followed at 14.7 per cent, while insurance stood at 11.5 per cent. These sectors, characterised by high transaction volumes and real-time customer interactions, have become attractive targets for organised fraud networks.

The telecom industry witnessed the sharpest escalation, with suspected fraud volumes soaring 308 per cent between 2024 and 2025. Insurance recorded a 145 per cent increase, while logistics saw fraud activity rise by 31 per cent during the same period.

The report suggests that traditional fraud controls may no longer be sufficient as attackers increasingly operate at the identity layer, often long before financial transactions take place. This has prompted calls for stronger authentication systems, adaptive verification tools and advanced analytics capable of detecting suspicious behaviour at the earliest stages of customer onboarding and account access.

As India’s digital economy continues to expand, the findings serve as a reminder that convenience and connectivity often come with a growing security challenge. For businesses, the message is becoming harder to ignore, in an era of increasingly sophisticated identity fraud, prevention may need to begin long before money changes hands.