Saturday, January 10, 2026

Why UPI is a Threat or Risk

1. Cyber-Fraud "Pandemic": As UPI transaction volumes grow, so does the target for scammers. Phishing, "collect request" scams, and social engineering are rampant. In India, a significant percentage of cybercrime is now UPI-related because the system is too easy to use.

2. Systemic Fragility: We are putting all our eggs in one basket. If the NPCI servers or a major bank’s core system goes down for even a few hours, it can paralyze the daily life of millions who no longer carry cash.

3. The "Digital Divide": While UPI helps many, those who aren't tech-literate (like the elderly or those in remote areas with poor data) risk being left behind in a society that is becoming "anti-cash."

4. Data Privacy: With billions of payment data points on where you eat, what you buy, and where you travel, the potential for mass surveillance or data breaches is a genuine concern for civil liberties.

No comments: