BioCatch flags 146% surge in text-message scams targeting Indian digital payments

BioCatch says text-message scams in India rose 146% as fraud shifts towards higher-value, scam-led attacks across UPI, mobile banking and e-commerce. Attempted fraud sessions fell 12%, but attempted payment value increased 35%, underscoring the need for real-time behavioural and device monitoring.

— Source publishedFri, 24 Jul, 2026, 17:58 IST·First seen Fri, 24 Jul, 2026, 18:06 IST·Source ET Small Business

What happened

BioCatch reports a 146% jump in India text-message scams as UPI, mobile banking and e-commerce fraud shifts toward high-value, scam-led attacks. The report

Key facts

  • Text message scams surged 146%
  • Attempted fraud sessions declined 12%
  • Value of attempted fraudulent payments increased 35%
  • Risky payment sessions doubled
  • Median value per fraud session increased 1.7 times
  • Average phone-call duration declined 31%
  • Median session length fell 32%

Why this matters

Banks, payment firms and commerce platforms should evaluate partnerships or acquisitions in behavioural biometrics, device intelligence and scam-detection capabilities to address increasingly sophisticated, high-value social-engineering fraud.

What to watch

  • RBI, NPCI or major UPI-app mandates on fraud-risk scoring, payee verification, cooling-off periods or liability treatment for scam-induced transfers.
  • Continued divergence between falling attempted-fraud session counts and rising average attempted payment value.
  • Growth in complaints involving SMS sender spoofing, fake delivery or KYC alerts, remote-access apps and first-time UPI beneficiaries.
  • Increases in merchant false positives, payment abandonment or declines for high-ticket mobile transactions.
  • Evidence that fraud migrates from UPI toward cards, BNPL, wallet top-ups, gift cards or cash-out through mule merchants.
  • Telecom action on sender-ID registration, SIM-swap controls, URL filtering and scam-message blocking.
  • Deploy SMS-scam detection signals alongside behavioral biometrics, device intelligence, SIM-change indicators and beneficiary-risk scoring.
  • Add contextual in-app warnings before first-time or high-value UPI transfers, explicitly flagging requests initiated through SMS, screen-sharing or remote-access apps.
  • Create graduated transaction controls: temporary caps, cooling-off windows and out-of-band confirmation for anomalous high-value payments rather than blanket declines.
  • Share confirmed mule accounts, scam URLs, sender IDs and device fingerprints across banks, PSPs, telecom operators and cybercrime reporting channels.
  • Review fraud rules by payment value, payee age, device novelty and customer segment; optimize against authorized-push-payment loss, not only unauthorized transaction rates.
  • Prepare customer-support and dispute workflows for more scam-led claims, including rapid account freezes and beneficiary recall procedures.