India recorded a suspected digital fraud rate of 7.1% across consumer transactions in 2025, according to the H1 2026 Top Fraud Trends Report published by TransUnion.
This is significantly higher than the global average of 3.8%, highlighting the growing challenges faced by India’s rapidly expanding digital economy.
Key Findings
Digital Fraud Rate
Metric Rate
India 7.1%
Global Average 3.8%
The report measures transactions flagged as suspected fraud across digital platforms.
Existing Users Face Higher Risk
Unlike many global markets, where fraud is concentrated during new account creation, India is witnessing greater threats targeting existing users.
Customer Journey Stage Suspected Fraud Rate
Account Login 3.9%
Account Creation 3.1%
Financial Transactions 1.2%
This indicates that cybercriminals are increasingly focusing on compromising existing customer accounts rather than creating fake ones.
Industries Most Affected
Several sectors recorded elevated fraud exposure due to high volumes of digital interactions.
Industry Suspected Fraud Rate
Logistics 16.3%
Telecommunications 14.7%
Insurance 11.5%
These industries process millions of online transactions daily, making them attractive targets for identity and credential-based attacks.
Fraud Techniques Are Evolving
The report highlights a shift in cybercriminal behaviour.
Instead of opening fraudulent accounts, attackers are increasingly attempting to access legitimate customer accounts using:
Stolen usernames and passwords
Credentials obtained through phishing attacks
Information exposed in previous data breaches
Credential-stuffing and account takeover techniques
This trend places greater emphasis on stronger authentication and continuous monitoring of existing user accounts.
Ky Takeaways
India’s digital fraud rate (7.1%) is almost double the global average.
Account logins have become the most vulnerable point in the digital customer journey.
Logistics, telecom, and insurance are among the sectors facing the highest fraud exposure.
Fraudsters are increasingly targeting existing customer accounts rather than creating fake identities.
Conclusion
The report highlights how fraud patterns are evolving alongside India’s digital transformation. As online payments, e-commerce, and digital services continue to grow, businesses will need to strengthen identity verification, account security, multi-factor authentication, and fraud detection systems to better protect consumers and reduce digital fraud risks.
Disclaimer:
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