India’s Digital Banking Era: Cyber Fraud Targeting Women and Senior Citizens from Legal and Socio-Economic Perspectives

Abstract

The evolution of digital banking in India can be traced back to the early 2000s, particularly following the global concerns surrounding the Y2K crisis, which accelerated advancements in information technology and cybersecurity. Over time, experts have worked extensively to counter threats such as phishing, vishing, data breaches, and SQL-based attacks. While technological systems have become more stable and secure, cybercriminals have simultaneously developed increasingly sophisticated techniques to exploit financial systems.
In recent years, digital payment platforms—especially Unified Payments Interface (UPI) and Aadhaar-enabled payment systems (AePS)—have significantly enhanced financial inclusion across India. Spearheaded by institutions such as the Government of India, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI), these systems have made financial services accessible to millions. However, this rapid digital expansion has also led to a surge in cyber fraud, disproportionately affecting vulnerable groups, particularly women and senior citizens.
These groups are often targeted through deceptive practices such as phishing messages disguised as official communications, impersonation scams, and coercive tactics like “digital arrest” frauds. Such crimes exploit not only technological gaps but also socio-cultural vulnerabilities, including limited digital literacy and trust-based social behavior.
Recent data highlights the severity of the issue. In 2025 alone, the National Cybercrime Reporting Portal recorded over 76,000 cybercrime incidents involving women. Similarly, senior citizens—especially those living in isolation—have suffered significant financial losses. Studies indicate that nearly half of individuals in these categories struggle to identify fraudulent schemes due to limited awareness and digital skills.
This study adopts a doctrinal and socio-legal approach, examining statutory frameworks such as the Information Technology Act, 2000, along with recent reforms under the Bharatiya Nyaya Sanhita, 2023 and Bharatiya Nagarik Suraksha Sanhita, 2023. It identifies critical gaps in existing legal mechanisms and highlights the need for adaptive and responsive regulatory structures.
To address these challenges, the paper proposes targeted interventions, including real-time fraud alerts within banking interfaces, enhanced cybercrime investigation infrastructure, improved coordination among enforcement agencies, and the introduction of compensation mechanisms for victims. These measures aim to shift the focus from reactive enforcement to proactive prevention.
Additionally, the study draws upon ethical principles from Buddhist philosophy, emphasizing values such as non-violence (ahimsa) and mindfulness (sati), to frame cyber fraud not merely as a legal violation but as a broader moral concern.