After the demonetization in India, Mobile wallets are becoming extremely popular among the citizens as mobile wallets are very convenient and easy to use alternative for cash. But there are also some frauds who try to steal your account details so they can grab your money. The various ways of Digital wallet frauds are:-


This is a well known online fraud method but now also famous in mobile wallets. Fraudsters uses different tricks like phone calls, sms or emails to divulge your PIN or personal details that are required to steal your digital wallets.

Counterfeit KYC:-

KYC stands for Know your Customer.  KYC is asked to the customers when the customers try to increase there transaction limit and at that time itself fraudsters gets the chance of money laundering without being detected by anyone.

3. Split transactions:-

Split transaction means breaking the transaction into smaller ones. By this process, agents will earn more Commission than usual.

4. Unauthorized sim swapping:-

In this case the fraudster pretends to be the main user or main account holder  of the mobile wallet with the help of false documents. Through this the fraudster can get the full access of the funds in the mobile wallet.
          The different ways for preventing such types of frauds are:-

1. Customer awareness campaigns:-

Many different customer awareness campaigns should be organized so that people get to know about this type of frauds. By knowing this, they will become carefully and may save themselves from such mischief.

2. Minimum deposit thresholds:-

By setting the minimum deposit thresholds you can save yourself from splitting transaction and agent will not be able to get Commission out of it.

3. Monitor suspicious customer activities:-

In this case we can set per day deposits limit for a account and pay a regular check to every account after every certain period of time. Especially the accounts in which more deposits are made in that period.

4. Management review on high value transactions:-

Company should always keep an eye on the transactions and payments made through their platform and especially on them in which high values are involved. This step will help in controlling the money laundering problems.

5. SMS alerts:-

Every account must be connected to a phone number which is provided by the user at the time of joining. By this the detail of every transaction and payment can be sent to the owner of the account through sms.

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